Uber is an app that lets you order a taxi, food delivery or a parcel collection.
This guide will take you through how Uber works, including how you can become an Uber driver to earn a living; where Uber is legal in Australia; how much Uber costs; a short history of the ride-sharing platform; how surge pricing works; whether Uber is safe and the other services Uber offers.
You can also find out the latest news in ride-sharing and check out our tools, including a calculator to see how much you can make as an Uber driver.
Using Uber is extremely straightforward:
First-time riders may be eligible for "new user" credit or a promotional sign-up offer. Make sure you check whether any Uber sign-up promo codes are available before you do. You'll then be prompted to sign up and download the app which is available on iOS or Android. You are required to provide your debit or credit card information so Uber can charge you for rides.
When you want to order an Uber, open the app and make sure your pick-up location is correct, then enter your drop-off point in the "Where to?" box. You'll then be shown your Uber options. Uber also gives you price estimates.
UberX is the most affordable option, while Uber Comfort, Exec, XL, Access and Assist will likely cost more.
Once you've entered your ride request, and an Uber driver accepts the trip, you'll be shown the name and licence plate of your driver as well as their location. The driver might call you if they need to check your pick-up. Uber sends you notifications when they are nearby.
You can track your ride when you're in the car and share your trip status with anyone you need to. The driver will be given a route to take, but you can ask them to take a different way. At the end of the trip, you don't need to physically pay as all payments are handled by the app. The last step is rating your driver out of 5 stars.
Uber drivers also rate their passengers. If your score dips too low, drivers might not accept your ride request. Here's how to make sure you maintain a good rating.
Minimum requirements for Uber driver (currently called a driver-partner) sign-up:
According to the brand's website, the requirements vary from city to city. For example, in Sydney, the conditions are:
Uber vehicle eligibility list for Sydney
| State | Is it legal? | Date legalised | Details/Levies |
|---|---|---|---|
| New South Wales |  | 17 December 2015 | $250 million of compensation was promised to taxi and car-hire plate owners and operators. |
| Australian Capital Territory | | 30 October 2015 | Drivers need to meet criteria and may need to pay additional licensing fees to drive with Uber. |
| Victoria | | 25 August 2016 | A $1 levy applies to taxi and ride-booking services in Victoria. |
| Queensland | | 5 September 2016 | The government had previously issued a cease-and-desist notice to Uber. |
| Northern Territory | | 1 February 2018 | The Government legalised Uber in 2017 but due to regulatory difficulties, the company was not set to launch in Darwin until August 2018. |
| South Australia | | 1 July 2016 | Taxi drivers will be compensated and a $1 metropolitan ride levy applies. |
| Tasmania | | 8 November 2016 | Initially only legalised until 2018. |
| Western Australia | | December 18 2015 | Ride-sharing services must operate with a Charter Vehicle Licence. |
In 2008, a Canadian and American wanted to get a taxi in a wintery Paris, apparently they found no taxis due to the snowy conditions. This gave them the idea to launch UberCab in San Francisco – a smartphone app that let you hail a taxi with the press of a button. The first Uber ride took place on 5 July 2010, a cross-San Francisco trip.
In December 2011, Uber went international, launching in Paris where the idea for ride-sharing was first envisaged. In July 2012, US Uber users could order ice cream (but only in 7 cities). In the same month, UberX was announced, which aimed to use hybrid vehicles. In October 2012, Uber arrived in Sydney.
Uber has continued to expand internationally ever since. Uber now operates across 37 Australian towns and cities, from Adelaide to Wollongong.
It depends on where you live, how far you are going and what time of the day it is (how busy the Uber network is).
You're charged a base fare, as well as a minimum fare. There are also additional fees depending on where you live.
In August 2021, to travel from Haymarket, NSW 2000 to Bella Vista, NSW 2153, the price is estimated as follows:
An UberX at 23:00 costs an estimated $84.40. Change that to later in the evening, then there may be things like surge pricing in play and the trip could cost more.
The Uber website has a fare price estimate calculator.
Uber's pricing model is dynamic, meaning it adapts to supply and demand.
Uber uses surge pricing to encourage more drivers to migrate into an area, as the location is experiencing a demand (or surge). They add multipliers to the price to attract the drivers and this cost is passed on to the rider. This can happen in a matter of minutes, it helps to keep things balanced as best as possible.
It's a great incentive for Uber drivers. It encourages them to be available during peak times and can really boost their earnings. For riders, it's not as popular, as you might be landed with a 1.2 or 1.5x surge price. Some drivers have reported earning as much as 7.5x surge prices in Melbourne.
To save money, Uber suggests waiting a few minutes if you're noticing surge pricing. That allows more Uber drivers to get online and make their way to the area, which should normalise the fares.
Uber has put in place safeguards to protect both riders and drivers.
The app provides a lot of the safety features. It includes an emergency assistance button. You can also press a button to discretely report non-emergency issues during the trip to Uber, which aims to follow this up within 24 hours. There's also a function that shares your trip with one of your contacts. Phone numbers are censored through the app, protecting your details. If a trip has an unexpected stop for a length of time, Uber will check to see what's happening.
When you accept a ride, you'll see the registration plate information of the Uber driver's vehicle, as well as a profile photo they've supplied. You can view past reviews they've received, their rating and how long they've been an Uber driver-partner.
The drivers are required to pass background checks, including criminal screening, before they sign up. There are also limits on the hours they can drive, speed limits built into the app and yearly vehicle inspections.
Granted, there are incidents and Uber last published safety statistics in 2019. The company said at that time that between 2017 and 2018, 2.3 billion Uber trips were made in the US. They found that 99.9% of the rides were incident-free. Of the 0.1% that weren't, 0.0003% of the rides had a "critical safety incident".
There were 19 fatal physical assaults. 7 of those deaths were drivers, 4 were third parties and 8 were Uber riders. There were 107 fatalities in crashes that were categorised as Uber-related, or around 1 in 20 million rides.
There were incidences of sexual assault, which varied depending on the crime committed. It should be noted that riders accounted for 45% of the accused parties across all categories of sexual assault.
Uber says that as of 2019, 40,000 drivers had been removed due to continuous screening. When investigating sexual assaults, Uber states:
When we receive a report of sexual assault, a trained safety support agent begins by identifying the accused party and their associated Uber account. We immediately remove the accused party's access to the Uber app so that they cannot take trips while we complete a review. If the accused party is a guest rider, we attempt to identify whether they have their own Uber account and, if they do, we restrict it. If the guest rider cannot be identified, or if they do not have an Uber account, we may restrict the account holder's access to the Uber app since they are responsible for their guest riders' actions while on a trip.
Uber has branched out from ride-shares to offer several other services:
Uber's Marketplace connects Uber drivers with vehicle lease deals, including short-term rentals and rent-to-own plans. The marketplace lists offers from businesses like Splend. Helpfully, it shows a lot of the costs upfront.
Some of the benefits and features included with the Uber Marketplace include:
By using Uber Marketplace, you have access to a variety of trusted lenders who offer Uber-accepted vehicles. This means that with some lenders, roadside assistance is available as well as replacement cars and unlimited kilometres, in order to keep you on the road and earning with Uber trips. This is not often the case when using a vehicle rental service, as some lenders might offer a replacement car, but it might not meet Uber's requirements.
Using Uber Marketplace immediately puts you in touch with ride-sharing and Uber-recognised rental vendors.
It's vital to consider your budget and your earning potential with Uber before making any decisions. There are also eligibility requirements you need to meet in order to get a vehicle with these lenders, and fees on top. It's also important to remember that you are responsible for running costs associated with the vehicle, such as fuel, unscheduled maintenance and tyres. Some lenders might include scheduled maintenance, and handle the registration fees and insurance costs.
Getting a vehicle through the Uber Marketplace is something to consider if you're wanting to get on the road quickly and want a vehicle that is accepted by the company. Make sure that you get advice from a qualified person before committing to any agreements.
Our love of cars is creating cities where parking is prioritised over people.
Read more…
If you are overcharged by a taxi in Australia, chasing a refund is hard work. Here's why the industry needs to change if it is to survive.
Read more…
Which rideshare option is cheaper?
Read more…
Which transport option is cheaper? It depends on how often you drive.
Read more…
Taxi vs Uber. It's the transport debate of the modern age, but which is better?
Read more…
At what point does surge pricing make Uber more costly?
Read more…Picture: Supplied
Bitcoin hits $100,000 for the first time ever.
Uncovering the various wealth journeys of Australians and the insights that can inform your own wealth expedition.
Thousands of Aussies are at risk of having their car insurance claim denied, according to new research by Finder.
Compare balance transfer results
Straight-up advice on your biggest financial dilemmas and money confessions - when you're not sure of your next step, our experts are!
Finder today announced it has acquired Grow My Money, an Australian based cashback platform that turns everyday spending into home loan and superannuation contributions.
It's the best time to save up to $200+ on your internet plan.
asdads.
One of the quickest ways to earn Qantas Frequent Flyer points is back - here's how I made the most of it.
hi, I just got back from Hong Kong where I had opened an Uber account. Instead of opening a new account in Australia, can I transfer the account over or make the account world wide?
Hi Eddie,
Hope this email finds you well.
You are able to use your Uber account anywhere in the world regardless of the country you opened it.
Happy Uber-ing!
Best,
Nikki
can my 17 year old ride alone in an uber in australia?
Hi Bec,
Thanks for getting in touch! Uber Requests from underage riders are not allowed and a rider must be at least 18 years of age to have an Uber account and request rides. Anyone under 18 must be accompanied by someone 18 years of age or older on any ride.
Hope this helps and feel free to reach out to us again for further assistance.
Cheers,
Nikki
The Uber app doesn’t save the CVV which means that I can’t use Uber. It used to work but I’ve changed my phone few months ago and since then the problem hasn’t solved. Any idea why it does it and how it can be fixed?
Hi Yosi,
Thank you for getting in touch with Finder.
Since you may choose other payment methods on Uber such as cash or a PayPal account, you may add a Paypal account then delete your credit card details then add it again and hopefully it would help to resolve this issue.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
Hi, I’m an Uber driver who currently works in Perth but am planning to drive to Melbourne and stay there for a few months before coming back home to Perth.
I was wondering if i could just sign onto the driver app and work or will i need to re-register in Melbourne?
Any help would be greatly appreciated.
Hi Sam,
Thanks for your message. If you’re looking to drive Melbourne other than Perth (and any other AU city) visit the Signing Up section of the Help Center in the Uber website to learn about the specific local requirements for any city where Uber is available. Here’s how:
1. Sign in to help.uber.com and navigate to the partner Signing Up help section
2. In the top right corner of the page, select the city you’d like to drive in.
3. Navigate to the Requirements section in the help menu to review driving requirements for the city you’d like to drive in
Note also that there are certain local city requirements of Uber when driving in Melbourne such your age shoud be least 21 years old, you have held an Open licence for 6 months or more, have a citizenship, residency or visa status that allows you the right to work in Australia and if you can provide supporting documents as required by Uber. As for your car, it has to be at least 4 doors, car model year of 2009 or newer and is in good driving condition with no cosmetic damage.
Hope this helps and best to contact Uber for more information,
Cheers and happy Uber-ing!
Best,
Nikki
Can the New Zealand ap be used in Australia?
.
Hi Graham,
Thanks for your inquiry!
Yes, you can use the UBER app in Australia regardless of where it was downloaded.
Hope this clarifies!
Best,
Nikki