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From Wednesday, Australian consumers could face higher fares for their Uber trips, as the company has announced a new measure to help drivers cope with the ongoing fuel crisis.
In the next three weeks, passengers across Australia will have to pay a surcharge of five cents per kilometre.
In a statement, Uber says the surcharge will go directly to drivers to cover their fuel costs.
“This measure builds on the national fare update Uber introduced in March, which increased drivers’ earnings across Australia, and reflects Uber’s continued focus on improving drivers earnings.”
Uber introduced the new measure following meetings with the Transport Workers' Union.
Michael Kaine, the union's national secretary, says rideshare drivers don't have the same entitlements as other employees in the transport sector.
“To this point, we had Uber drivers and workers in the rideshare economy having to fund that out of their own pockets. That's just not sustainable. And of course that means that they've got incredible pressure for themselves and their families if they want to continue to make a living.”
Uber has exempted rides on electric vehicles from the surcharge. Passengers can also choose an EV through the platform's Uber Green option.
The new measure comes after Uber's sister platform, Uber Eats, launched a temporary fuel relief payment to delivery riders to mitigate fuel price spikes.
Ed Kitchen, General Manager of Uber Eats Australia and New Zealand, says the measure applies to people who travel more than 100 kilometres delivering in cars or motorbikes.
They can receive a distance-based payment of $5 per 100 kilometres on a weekly basis for a period of two months.
Mr Kaine says other companies have also taken similar measures.
“Didi, who's the other main operator in rideshare, has made a similar type of commitment, and that was done a little while ago. And in the road transport economy itself, we have companies at the top of supply chains like Woolworths and Coles who have quite a significant footprint in road transport obviously bring in their payments in from one month to two weeks and adjusting them accordingly. But that still leaves a massive chunk of the road transport industry unattended about 85 per cent.”
The Transport Workers Union has lodged an urgent application to the Fair Work Commission for a minimum standards order.
Besides transport on the road, Qantas on Tuesday also raised its fuel cost outlook of up to $3.3 billion for the second half of the financial year, after announcing it would review fares every two weeks from March to address the fuel crisis.
The airline has also confirmed that it will cut domestic flights, while Jetstar has said it would reduce flights between Australia and New Zealand.
The Australian Council of Trade Unions’ Secretary Sally McManus has called for an increase of vehicle allowances for Australian workers.
“Working Australians have a very strong memory of what happened last time there was an inflation spike, and we know that if we do not try and keep up with it, the cost of living, it takes a long time to recover it, so I think inevitably, workers will absolutely be demanding higher pay increases.”
