Many Australians have ditched taxis for Uber for a number of reasons. These include the convenience of being able to request a ride with the tap of a button, the convenient payment method, being able to follow how far away your driver is and also the high quality service because the driver must maintain a high rating.
Another big reason is the assumption that it is cheaper. However this is not always the case, especially during the busy holiday season.
During peak times when Ubers are in high demand Uber will apply surcharge pricing, which is a multiplier applied to the cost of the fare. As a result there becomes a point where Uber is no longer the cheaper option compared to taxis. Research by Finder.com.au has identified the price point that taxis become cheaper than Uber in Melbourne, Sydney, Hobart, Adelaide, Perth and Brisbane.
Melbourne
- Taxis become cheaper in weekday daytime hours when the surcharge is 1.4 times the normal price
- Weekend evenings taxis become cheaper when the surcharge is 1.8 times the normal price
Sydney
- Taxis become cheaper in weekday daytime hours when the surcharge is 1.4 times the normal price
- Weekend evenings taxis become cheaper when the surcharge is 1.7 times the normal price
Hobart
- Taxis become cheaper in weekday daytime hours when the surcharge is 1.4 times the normal price
- Weekend evenings taxis become cheaper when the surcharge is 1.6 times the normal price
Adelaide
- Taxis become cheaper in weekday daytime hours when the surcharge is 1.5 times the normal price
- Weekend evenings taxis become cheaper when the surcharge is 1.8 times the normal price
Perth
- Taxis become cheaper in weekday daytime hours when the surcharge is 1.6 times the normal price
- Weekend evenings taxis become cheaper when the surcharge is 1.6 times the normal price
Brisbane
- Taxis become cheaper in weekday daytime hours when the surcharge is 1.8 times the normal price
- Weekend evenings taxis become cheaper when the surcharge is 1.9 times the normal price
Surge prices for taxis and Uber are tough to understand “with Uber fares changing based on how busy the streets are, taxi fares changing based on time of day and with different fares for both of these in every city, it can be confusing to know which is cheaper.” He also said “generally, it is cheaper to get a taxi in Australia, after the surge ratio hits 1.6.”
Mr Cooke recommends The GoCatch app because it allows consumers to book an economy rideshare car as well as a traditional taxi. “If economy cars are not available when you book, the app will often upgrade you for free to a taxi.”
Article sources:
Tim McIntyre, news.com.au
Finder.com.au
Jason He, Quora
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