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Uber explains latest fare hike for Aussie customers



Uber passengers will now have to fork out close to 4 per cent more on every booking as the rideshare giant looks to increase pay for drivers.

Uber made the nationwide changes following feedback from drivers and insists the hike will "improve reliability for riders and create more compelling earning opportunities for drivers".

The company hopes the pay rise will entice more people to sign up to drive with the platform, helping match consumer demand.

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A spokesperson for the company told 9News consumers will see the benefits from paying more.

"(The price rise) also helps us maintain the high level of service and support that people have come to expect from Uber," the spokesperson said.

While drivers have welcomed the slight increase in pay, riders say Uber is already too expensive.

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"The prices are just getting ridiculous, I'm going 10 minutes down the road and it's $30," passenger Mia Duff told 9News.

According to research compiled by Finder, Uber was still vastly cheaper than taxis but only when surge pricing wasn't in play.

"As soon as there's an opportunity to take advantage of an increase in demand, Uber will jump on that and push up the prices," Finder's Graham Cooke said.

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