Uber drivers creating artificial surge prices

Uber passengers could be paying up to three times the cost of their trip because of drivers manipulating the system.

Multiple Uber drivers have told triple j hack that customers are being slugged with surge pricing when there are cars available in the vicinity.

Bill*, who has been driving an Uber on the Gold Coast for more than 10 years, said it was an "old trick".

"It mainly happens at airports and pick-ups after football games where there's specific areas of pick-up zones," he told triple j hack.

"A bunch of drivers, if they're the only ones there, they'll all say, 'Let's just all hold out for a little while,' and then the surge pricing goes up.

"It certainly doesn't go as high as what it used to. I think it maxes out at only three times the fare now."

Bill* says Uber drivers are being forced to do "dodgy things" to make a living. (ABC News: Malcolm Sutton)

Bill said Uber drivers had a certain amount of time to accept a trip request. However he some drivers purposefully allowed the request to expire.

"At the airport, there's a queuing system, it's first in, first out," he said.

"But if [an Uber driver] doesn't accept the trip, it will go to the next driver, and then if he doesn't accept the trip, then so on and so on.

"All of a sudden, the app will determine that there's not enough drivers in the area, so the price will start to surge in that specific area."

Union aware drivers gaming system

The national secretary of the Transport Workers' Union, Michael Kaine, told triple j hack he was aware of Uber drivers gaming the system, but he said it was for a valid reason.

"Drivers are innovative, they will band together, they will manipulate the system to try and push the prices up," he said.

"Because when the prices are up, the drivers get a fairer cut.

"A cut that allows them to pay for their fuel, to pay for their insurance, to pay for the running of the vehicle, to pay for their workers' compensation.

"Things that Uber expect them to bear but they're not providing them the rates to bear them."

Michael Kaine says Uber drivers are innovative and will do "whatever they can" to make a living. (ABC Radio Brisbane: Kenji Sato)

Last year, the government created legislation that introduced powers for the Fair Work Commission to set minimum standards for gig economy workers, including rideshare drivers.

These new laws mean the Fair Work Commission can set a base rate of pay, something which would mean rideshare drivers would get the same pay, no matter which app they worked for.

Mr Kaine said "those rights are just in the process of being built" and Uber drivers should be paid more in the meantime.

"They shouldn't have to be trying to manipulate the system just to make a living for themselves and their families," he said.

" Every Australian worker deserves reasonable pay. "

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In a statement, an Uber spokesperson said the company had community guidelines which set out what "behaviour isn't appropriate and what will cause a user to lose access to their Uber account".

"Fraudulent activities such as deliberately increasing time and distance of a trip, accepting trip, order or delivery requests without the intention to complete, may result in loss of access to the Uber apps," the statement said.

"We work to inform driver partners and riders about those standards and take action to hold them accountable for their behaviour."

The company also said that up-front pricing that allowed riders to see an estimated cost of their journey before booking a car would help improve transparency, "giving riders the option to decide how they get around, in a way that best suits their needs, timing, and budget".

'A bit of bulls***'

Alex (left) and John say that it is not fair Uber drivers are gaming the system. (triple j hack: Rachel Rasker)

For 18-year-old Uber customers Alex and John, drivers on the platform often manipulate the system.

"That's a bit of bullshit, to be honest with you," Alex said.

"I mean, I definitely think they [Uber drivers] should be getting paid more.

"[But] I don't know about putting it on the customers, as opposed to the company, but I understand the struggle."

John put forward an alternative solution for drivers.

"I'd almost rather they ask for a tip than just artificially pump the prices," he said.

"Because that's what it is."

Neev says it is "not good enough" that some Uber drivers are passing an extra costs onto customers. (triple j hack: Rachel Rasker)

Another Uber user, Neev, said the "worst" surge price she had faced was after a concert.

"We were looking at $50 to $60 for an Uber for like a five-minute drive," she said.

"I think that's horrendous.

"The Uber drivers are just wanting to charge people more for what is a pretty simple trip."

Neev said she understood Uber was taking a percentage of drivers' pay.

"To drive the car, fuel the car, maintain the car, when they're really not earning that much from it to begin with," she said.

"But I don't necessarily think that the customer should be fronting the price of that."

'Doing dodgy things'

Back on the Gold Coast, Bill wants to see Uber pay its drivers more.

"I mean, the exact same thing happened to the taxi industry in Australia — the government just kept taking more and more," he told hack.

"It forced the drivers to just become more and more untrustworthy and creative with doing dodgy things to scrape the last dollar from the rider.

"It's the same thing with Uber, they're taking more, they're charging less."

* Names have been changed to protect their identities.

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