Cab riders will need to shell out more money after City Taxis and Uber increased their fares for different reasons.
City Taxis sent out an email to their customers, citing the rising fuel prices as the reasoning for the increased fares. The raised prices came into effect from midday on 18 March.
They said: “Passing price increases onto our customer base is not a decision we take lightly, and this step is being taken purely in the interest of helping our drivers absorb a sudden increase in their running costs.”
Uber raised their prices this week, following the High Court decision on 6 December which found the company had a “contractual obligation” to make sure the passengers got a ride. This means when you order a cab on the app and the drivers cancel, it is the company’s job to ensure you get a ride.
Uber previously claimed they were a software company that acted as a “booking agent” and not a “contractor”.
Since the ruling, the company’s business model has changed. Hence, they have to pay 20% Value Added Tax (VAT), which they are passing on the riders. The tax value will not be shown separately to the rider and will instead be added in the fare beforehand.
The company said: “We have completed the changes to our business model as required by law.
“Uber operates in an intensely competitive market and we are committed to always offering consumers affordable prices. As always, riders will get a trip price before booking their journey.”
The increase in the prices will vary from city to city, though they have not revealed further details as they consider it sensitive information.
There is no update from the company on how much the prices will affect the riders in Sheffield.