Modelling by the digital platform shows it may have to lift rideshare and food delivery prices by 60 to 85 per cent if it’s forced to pay gig workers penalty rates.
Uber has warned it may have to increase average prices for rideshare and food delivery by up to 85 per cent, resulting in 140 million fewer trips for drivers and potentially forcing it shut down the app in regional areas, if parliament passes the Albanese government’s laws to set minimum pay for the gig economy.
Uber’s modelling on paying casual award rates, penalty rates for weekends, nights and public holidays, reimbursement of expenses and superannuation showed it may have to lift prices by 60 per cent for rideshare and 85 per cent for food delivery which, in turn, would result in“There will invariably be people that stop working but there will also be people that will go from 15 hours to 10 hours, from 35 to 25, etc and ultimately this is money that we know Aussies need,” Mr Taylor said.
Uber’s modelling – which Mr Taylor said was “conservative” and assumed workers were only paid on engaged time – found Uber rides during the day would increase by 55 per cent while those on public holidays would increase by 85 per cent. According to Uber’s submission to the Senate inquiry into the bill, the modelling showed penalty rates “might result in platforms being forced to turn off the app at certain times of day or in specific geographies or dramatically increase prices”.
He stressed Uber was encouraged by the progress made through Mr Burke’s consultation over the past year and that it was proposing “quite practical and constructive” reforms to ensure the intent and detail of the bill were aligned. Uber will seek to limit requirements for FWC to consider comparable employees’ pay and conditions when setting minimum gig worker pay by ensuring such a consideration only applies to the award base rate.It also wants minimum engagement periods, penalty rates, training and payment for “online time” – not just engaged time – explicitly excluded in the bill and for costs reimbursement to be limited to incremental costs incurred on the platform.