Why Uber is more expensive in Joburg than Cape Town

Uber announced a 5% price hike in South Africa at the end of 2018, raising the price of an average fare across all cities.

Prices for UberX and UberXL were affected in Johannesburg, Pretoria, Cape Town, Durban, and Port Elizabeth.

Uber said it implemented these price changes to allow drivers to earn more and to invest in development of additional features for drivers and riders.

However, while the price of an UberX ride is consistent across Cape Town, Durban, and Port Elizabeth, it is more expensive in Johannesburg and Pretoria.

The standard Uber prices in each South African city are listed below.

Uber Johannesburg/Pretoria Cape Town Durban Port Elizabeth
UberX R8.00/km R7.50/km R7.50/km R7.50/km
UberXL R7.50/km R7.50/km

Uber also offers a ride option in Port Elizabeth named UberGO, which are smaller vehicles than UberX and have a rate of R6.00 per km.

Pricing structure

MyBroadband asked Uber why its prices were higher in Johannesburg and Pretoria compared to other South African cities.

The company said it takes a number of factors into account when determining the price of its offerings in each city.

“Each city presents its own unique opportunities and challenges,” the company told MyBroadband.

“We always look closely at our business model, the needs of our rider and driver community, as well as the economics in each city and provide the best possible fare and service that is unique to that market.”

“We use a pricing model which is tried and tested in 600-plus cities across the world,” added Uber.

“Uber’s fare is based on a combination of base fare, trip time, distance traveled, traffic conditions, as well as the availability of driver-partners.”

The combination of these factors means that taking an UberX in Johannesburg or Pretoria is R0.50/km more expensive than in other South African cities.

“Our fare structure means that we can invest even further in Uber’s existing technology – with improvements that we’ve recently introduced to help keep riders safer on the road,” Uber said.

Now read: Uber Eats launches Pick-Up service in Johannesburg

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Why Uber is more expensive in Joburg than Cape Town