UBERX DRIVING $80M IN BENEFITS A YEAR

Written on the 1 February 2016

UBERX DRIVING $80M IN BENEFITS A YEAR

RIDE-SHARING service Uber delivers more than $80 million in benefits to Australia each year, according to Deloitte Access Economics.

The Economic Effects of Ridesharing in Australia report, commissioned by Uber, calculated $49.6 million in consumer surplus from the industry competitor and $31.5 million in savings for those who made the switch to the service.

The concept of ridesharing is still relatively new to the Australian point-to-point transport market, as the Australian taxi industry transitions to regulatory reforms.

The NSW and ACT government approved ridesharing last year, with the Western Australia and Tasmanian Government also signalling intentions to review regulations.

Uber's low cost option uberX accounted for 6 per cent of total rides in the point-to-point transport market last August, which conservatively equates to 14.5 million rides annually.

The growth has been propelled by the differentiated service offering and lower prices with uberX just under 20 per cent cheaper than an equivalent taxi fare.

Deloitte Access Economics director Dr Ric Simes says the impact of uberX in Australia is playing out as one of the most compelling sharing economy stories.

"uberX is both transforming and growing the point-to-point transport market, offering an additional option for customers," Simes says.

"While uberX is only providing a relatively small proportion of services compared to the taxi industry - approximately 6 per cent of the total rides in the point-to-point market it is delivering significant benefits for users.

"And with the likelihood that ridesharing will continue to grow in popularity, the consumer benefits we have identified may be greater."

The report also identified the average waiting time for an uberX ride was substantially lower at 4.46 minutes compared to 7.79 minutes for taxis.

Uber's network of 20,000 driver-partners in Sydney, Melbourne, Brisbane and Perth will receive around $260 million in fares per year, net of the licensing fee paid to Uber.

 


Latest News

OROTON GOES CLICKS AND BRICKS AS PROFITS SLIDE

TWO former Aussie lawyers have turned their passion for fashion into a $15 million dollar international business six ...

MANTRA'S SHARE PRICE SURGE INDICATES 'SUITORS ARE CIRCLING' THE HOTEL GROUP

THE rumour mill surrounding a high-level takeover of Mantra Group (ASX: MTR) is in full production with its shares su...

MELBOURNE CBD GEMS SELL FOR $17 MILLION, MARKING A NEW PROPERTY HOTSPOT

LITTLE Lonsdale Street in the heart of Melbourne's CBD has become a favourite for investors in 2017, following th...

CAN GOOGLE RECOVER FROM GLOBAL CONTROVERSY OVER ITS PROGRAMMATIC ADVERTISING SYSTEM?

IT'S the story that has rocked the world of advertising. The lucrative Google (NASDAQ: GOOGL) advertising system ...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter