Uber raises prices amid surging demand for rides

Fares rise by 10pc in London as the cab company aims to hire 20,000 more drivers

Uber is raising prices in London amid surging demand and a shortfall of drivers.

Fares will climb by 10pc in the capital and by up to 25pc for airport journeys, the taxi company said. Journeys outside London will not be affected.

Users have complained of long wait times and drivers cancelling journeys, with the minicab app struggling to get enough drivers on the road to meet demand. 

Even before the price rise, fares had surged due to Uber’s surge pricing algorithm, which pushes up prices to match demand for rides with supply.

Some users have reported journeys regularly costing more than a black cab ride. The company said the change would make this less frequent.

Although Uber has said it has a record number of drivers in the UK, demand has skyrocketed as the economy reopens. Uber this year said it hoped to hire another 20,000 drivers by the end of the year to return the service to normal.

Thursday’s price rise is the first since 2017. As well as the 10pc increase to base fares, there will be an additional 15pc surcharge for journeys to and from Stansted, Gatwick, Luton and Heathrow airports at peak times, making trips up to 25pc more expensive.

“We’re making these changes to help provide a better rider experience, by signing up more drivers to meet the growing demand,” Uber said.

“We know people rely on Uber to book a safe trip around London and this small fare increase will help reduce wait times. As always riders will get a fare estimate before booking their journey.”

Uber recently said drivers were making up to 40pc more money than they were before the pandemic due to the higher prices for rides. The company will continue to take a 25pc cut from most drivers.

The company recently said it had become profitable globally for the first time, on an adjusted basis. It now guarantees minimum wage, holiday pay and pension contributions for drivers in the UK, although driver groups have criticised it for only counting the time that a driver is on a trip towards this.