'Putting people first': New South Wales to cap Uber surge pricing
In an Australian first, New South Wales will introduce an Uber surge price cap, the state government revealed today,
Transport Minister Jo Haylen told Ben Fordham on 2GB the move would protect the rights of Uber passengers during periods of high demand.
She said following recent discussions with Uber, a "sensible agreement" had been reached.
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"This will put people back at the centre of this operation ... better than us being dictated by an algorithm," Hayley said.
The rideshare operator agreed to cap surge fares during times of peak demand, such as a major closure of a public transport network or a major emergency incident.
NSW Transport officials would speak directly with Uber during such incidents and the company would keep its drivers updated with developments, Haylen said.
Uber said it was looking forward to working with the state government on the agreement.
"Over the past decade, Uber has become an integral part of the NSW transport network, and residents rely on our platform for convenient, safe rides every day. Especially when there are significant disruptions in the transport network, Uber is an important safety net that helps get people where they need to be," said Dom Taylor, general manager of Uber Australia and New Zealand.
"We're excited to deepen our partnership with the NSW Government and take steps that will work to the benefit of residents across the state."
The rideshare giant sparked outrage in March when a technical fault briefly brought Sydney's rail network to a complete shutdown and thousands of commuters were left stranded and turned to Uber or taxis.
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Following the shutdown of Sydney's rail network, commuters crowded at Central Station on March 8, 2023 in Sydney, Australia. Getty
Surge prices kicked in when customers needed the transport the most on March 8. A rideshare from Central Station to the airport quoted at $90 while a trip from North Sydney to the Sutherland Shire was seen as high as $280.
A trip from the city to Mount Annan would normally set a customer back $40 but at the height of the chaos it peaked at $500.
Uber later issued an apology for the surcharging and promised to refund customers who were charged hundreds of dollars.
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