A controversial Uber pricing system that could see passengers charged more if their destination is in an upmarket area is not operating in Australia.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The so-called “route-based pricing” has been introduced on a trial basis in 14 cities in the United States.
In these cities the company reportedly uses people's pick-up and drop-off points and time of day to estimate what the passenger is willing to pay.
This could result in those travelling to a high-income suburb could get charged more than those travelling to less well-off areas – even though both trips cover the same distance.
When asked, an Uber spokesman said there was no route-based pricing in Australia and there were no plans to introduce it.
“Uber operates in 75 countries, and each of them have different laws and different regulatory frameworks,” the spokesman said.
“This is not happening in Australia.”
The spokesman said the fare structure in Australia was based on a combination of time and distance travelled.
Passengers are charged 30 cents per minute for the duration of the trip and $1.10 per kilometre.
For instance, a five-kilometre trip that takes 10 minutes would result in $5.50 for the kilometres travelled and $3 for the time for a total of $8.50.
On top of this is a base fare of $2 for each trip and there is also a minimum fare of $6.
Passengers are given an estimate of the fare through the app before they request a ride and can request a fare review if they feel the driver took a longer route.