Taxi companies in Australia are introducing flat-fare trials at major airports to compete with rideshare giant Uber. Melbourne airport began a fixed-fare booking trial on Friday, while Sydney airport will start a one-year trial of a $60 flat fare for trips to the CBD from 3 November.
The changes, supported by the taxi industry, aim to regain market share lost to Uber. At Sydney airport's international terminal, Uber's share of pickups rose from 35% in 2019 to 50% in 2024, while taxis fell from over half to 27%. In Melbourne, about 60% of passengers now use Uber, compared to 20% for taxis.
Uber's Pin system, which allows riders to match with a first-available driver, has been made permanent at Sydney airport's international terminal after a trial. Critics argue this gives Uber an unfair advantage, with the NSW Taxi Council calling it a 'free kick' for the rideshare company.
Professor Hussein Dia of Swinburne University described the taxi trials as a 'symbolic move' against Uber's superior app interface and ratings system. However, the NSW government says on-street inspectors will monitor compliance with the flat fare trial.
