Melbourne Uber prices soar during Grand Prix weekend

Fares of up to $545 were reported during the busy weekend. Photo / Pexels

Many Melburnians who flooded back to the footy, Grand Prix and other events have been slugged exorbitant Uber fares last weekend.

Reports of fares of more than AU$500 (NZ$545) have surfaced, causing some to stop using the service.

The fare rises are due to Uber's dynamic pricing system; prices change during busy periods, but this has been labelled as "price gouging" by one MP.

Transport Matters Party co-founder and MP Rod Barton told 3AW on Monday the government had "failed" when it deregulated the industry.

"It's certainly not dynamic pricing, it's gouging at its rawest form," Barton said.

"We've got to wake up to and stop kidding ourselves, and the government's got to wake up to it – Uber is just another taxi company from San Francisco doing pre-booked taxi work.

"Their fares should be regulated like the rest of the taxi industry."

An Uber spokesperson said, like in many industries, its prices change in response to fluctuations in demand.

"Dynamic pricing – often referred to as surge – exists to create a balance between demand for Uber rides and the number of active driver-partners during that time frame. It happens when demand from riders at a particular time exceeds the supply of driver-partners, such as during periods of peak demand," the spokesperson said.

"By increasing the price, more drivers go to an area to earn more during peak demand, making more rides available for people who need them. People who don't want to pay the higher price and have time can wait until more driver-partners are in the area, or choose another alternative."

People can also see the total cost of a trip before booking through Upfront Pricing or have a locked-in upfront price if they book in advance using Uber Reserve.

Over the weekend, Barton saw Uber fares ranging from AU$327 to more than AU$545 for 50km trips and as well as $130 trips to return to the city from the racetrack.

"It even made my eyes water," he said.

"It's an interesting strategy. At the same time, Uber is trying to offer incentives for drivers to come back, they're doing this and driving their customers away."

Many have now sworn off using the rideshare service over these prices, with Barton saying people are returning to taxis.

"The numbers are showing there's a massive swing back towards the taxi industry," he said.

"People are prepared to pay a premium if there's a convenience to it, but they're not prepared to be ripped off."

But travel issues were not contained to Uber alone, with reports of people being unable to get a taxi over the weekend due to the fixed price guarantee.

On how Uber could be regulated, Barton said all maximum fares could be determined by the Essential Services Commission.

He also said a recent parliamentary inquiry into the multi-purpose taxi program recommended a cap on the work being done for those with disabilities, which he called a "stepping stone".