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Minister for Transport Darragh O'Brien writes to NTA on Uber's fixed pricing model

The fixed pricing system allows Uber passengers to pay an upfront price calculated by the app's own algorithm as an alternative to a regulated meter fare (stock image)
The fixed pricing system allows Uber passengers to pay an upfront price calculated by the app's own algorithm as an alternative to a regulated meter fare (stock image)

Minister for Transport Darragh O'Brien has written to the National Transport Authority (NTA) and requested it "look at" concerns expressed by taxi drivers over Uber's recently announced fixed price model.

Introduced at the beginning of this month, the system allows Uber passengers to pay an upfront price calculated by the app's own algorithm as an alternative to the National Transport Authority’s (NTA) regulated meter fare.

The up-front price is dictated by factors, such as route, traffic, weather and time of day.

It cannot go above the taxi’s maximum fare price, but it can go below it.

Speaking in reply to People Before Profit leader Richard Boyd Barrett, Minister O'Brien said he had written to the NTA on 19 November and was waiting on a response.

He added that he had been in Brazil for the UN climate conference last week, but would be following up on the issue as a matter of urgency.

Taxi drivers are calling for regulations of the industry to be updated - which they claim do not keep pace with the rise of app-based dispatchers.

Dublin city was hit by widespread disruption last weekend as over 1,500 taxi drivers from across the country gathered at the gates of Leinster House, driving in slow protest against Uber's initiative.

Around a third of Ireland’s 17,400 licensed taxi drivers currently use the dispatch service - many of which have been switching off their Uber app over the past two weeks.

National Private Hire and Taxi Association spokesman Jim Waldron believes that the NTA’s regulated fare system ensures transparency for both drivers and passengers - and is now under threat.

"Uber is basically trying to interfere with that fare process and in our opinion and in drivers' opinion, create a culture of fixed fares," he said.

In statement sent to RTÉ, Uber said its fixed price offer does not breach fare regulations outlined in the Taxi Regulation Act 2013 - noting that riders are "much more likely to book a trip" if they know what the fare is going to be, creating "more earning opportunities" for drivers.

The company added that drivers can see their estimated earnings before accepting a job - as well as various algorithmic factors that influence it.