According to The Australian Financial Review, Uber has raised fares in major cities and introduced booking fees across Australia and New Zealand to meet "operational costs".
The price rises announced late last week follow Magellan Financial Group fund manager Hamish Douglass warning that Uber's high cost, owner-driver model and "valueless" user base was akin to a "Ponzi scheme" and that the business was likely to collapse in the next decade.
Drivers have in turn accused the ride-share company of taking more than it is giving and said the extra fees, which go solely to Uber, come as they are struggling to make a living outside the major cities.
Late last week, Uber told drivers in Melbourne that it planned to increase the minimum fare from $6 to $6.95, meaning drivers will take home a minimum per trip of $5.21.
In Sydney, the minimum fare will rise from $8 to $8.45, lifting drivers' take-home pay from $6.40 to $6.76 based on a 20 per cent commission to Uber.
An Uber spokesperson told The Australian Financial Review it would increase minimum fares for all cities across Australia from June 9 after introducing similar changes to New Zealand the previous week.
At the same time, it would introduce a 55c "booking fee" for all rides, which it described as "a flat fee added to every trip for riders that will in turn help support Uber's operational costs".
Uber will deduct 50c from the fare for its "booking fee" on top of its 20 to 25 per cent "service fee", leaving drivers to pay the GST on both.
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