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Uber prices are going to increase and here’s why

UBER Driver

Heads up, the cost of Uber rides is going to increase.

In a message sent to customers, the ride-hire app has announced that the cost of trips will go up by 1.7 per cent because of the recent introduction of Value Added Tax (VAT).

Uber explains that while transportation is exempt from VAT, the tax does apply to the “marketplace services its provides through the app”.

Here’s a full run down of what is and isn’t eligible for VAT.

Fares will increase slightly for all ride options over the coming days, including uberX, UberSELECT, UberBLACK, UberXL, UberONE and UberVIP.

The transport company says the rise also “allows drivers to earn a little more to make up for the additional tax that affects their earnings”.

In November 2017,  Uber announced that that drivers will now be paid for waiting times.  The exact time or the amount hasn’t been specified, but elsewhere in the world Uber has begun charging passengers after three to five minutes.

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