UBERX DRIVING $80M IN BENEFITS A YEAR
Written on the 1 February 2016
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.