Uber raises minimum fares in NZ

Uber is set to raise minimum fares to $6.50 across the country after drivers complained they didn’t make enough money from short-distance rides.

The popular ride-sharing app operates in Christchurch, Auckland and Wellington.

There are two parts of their new prices – one that will affect everyone using the platform and one that only applies for short rides where the ‘‘minimum fare’’ applies.

The first is a new booking fee of 55 cents that will apply to all rides.

The second is an increase of the minimum fare by 95c, which means the ride will cost you $5.95 before you take off. In total this raises the base rate by $5 to $6.50, but if your ride is already going to run higher than the minimum fare, the only bump you’ll see is the 55c booking fee.

‘‘Following our recent roundtable listening discussions with driverpartners, we heard that an important improvement Uber could make to the driving experience would be increasing the minimum fare.

‘‘As a result, we are raising the minimum fare in all New Zealand cities to $5.95,’’ an Uber spokesman said via email.

‘‘Uber is also introducing a 55c booking fee to assist with the costs associated with providing a safe, reliable ridesharing service. Riders will see the booking fee in their receipt at the end of the trip.’’

The booking fee mirrors one in the United States.

The change takes the minimum amount a driver can make per ride to $4.28, after Uber takes its cut.

Uber has had a turbulent 2017 so far. Its president has been rocked by public relations scandals after video emerged of him yelling at a driver and reports of sexism within the company surfaced.

In New Zealand it has repeatedly flouted local law by not requiring new drivers to obtain a P endorsement.