Uber is implementing price increases in London to address the surge in demand and a shortage of drivers. Fares will be raised by 10%, while airport journeys will see an increase of up to 25%. Meanwhile, trips outside of London will remain unaffected. This decision comes as users face long wait times and frequent cancellations by drivers, underscoring the challenge Uber faces in meeting the rising demand.
Before this price hike, Uber’s surge pricing algorithm had already caused fares to skyrocket in response to supply and demand imbalances. Many users have voiced their dissatisfaction with the app, as journeys often cost more than traditional black cab rides. Uber hopes that these new changes will make such occurrences less frequent.
Despite Uber’s announcement that it currently has a record number of drivers in the UK, the demand has surged significantly with the reopening of the economy. To address this issue, Uber plans to hire an additional 20,000 drivers by the end of the year in order to restore service to normal levels.
This increase marks Uber’s first price adjustment since 2017. In addition to the 10% rise in base fares, there will be an extra 15% surcharge during peak times for trips to and from Stansted, Gatwick, Luton, and Heathrow airports, making these journeys up to 25% more expensive.
Uber stated, “We’re implementing these changes to improve the rider experience by attracting more drivers to meet the growing demand. We understand that riders rely on Uber for a safe trip in London, and this marginal fare increase will help reduce wait times. As always, riders will receive a fare estimate before booking their journey.”
Recently, Uber announced that drivers are making up to 40% more income compared to pre-pandemic levels, thanks to the higher prices for rides. The company will continue to take a 25% commission from most drivers.
Uber also revealed that it achieved global profitability for the first time, on an adjusted basis. In the UK, the company guarantees minimum wage, holiday pay, and pension contributions for drivers. However, driver groups have criticized Uber for only considering the time a driver is on a trip when calculating these benefits.
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