Many Melburnians who flooded back to the footy, Grand Prix and other events have been slugged exorbitant Uber fares over the weekend.
Reports of fares costing more than $500 have surfaced, causing some to stop using the service.
Uber calls it “dynamic pricing” to adjust to a number of variables during busy periods, but it has been labelled by one MP as “price gouging”.
Transport Matters Party co-founder and MP Rod Barton told 3AW on Monday the government had “failed” when it deregulated the industry.
“It’s certainly not dynamic pricing, it’s gouging at its rawest form,” Mr Barton said.
“We’ve got to wake up to and stop kidding ourselves, and the government’s got to wake up to it – Uber is just another taxi company from San Francisco doing pre-booked taxi work.
“Their fares should be regulated like the rest of the taxi industry.”
Over the weekend, he saw fares ranging from $300 to more than $500 for 50km trips and as well as $120 trips to return to the city from the racetrack.
“It even made my eyes water,” Mr Barton said.
“It’s an interesting strategy. At the same time Uber is trying to offer incentives for drivers to come back, they’re doing this and driving their customers away.”
Many have now swxjmtzyworn off using the rideshare service over these prices, with Mr Barton saying people are returning to taxis.
“The numbers are showing there’s a massive swing back towards the taxi industry,” he said.
“People are prepared to pay a premium if there’s a convenience to it, but they’re not prepared to be ripped off.”
On how Uber could be regulated, Mr Barton said all maximum fares could be determined by the Essential Services Commission.
He also said a recent parliamentary inquiry into the multi purpose taxi program recommended a cap on the work being done for those with disabilities, which he called a “stepping stone”.
