Christmas taxi fare hike slammed for unfair impact on workers

Uber has expressed concern over the National Transport Authority’s (NTA) decision to increase taxi fares by 9% from December 1, 2024, while the extra €1 charge on pre-booked trips, such as those on all taxi booking apps, will bring the increase to over 10%.

The NTA’s decision to increase pre-booking fees and extend peak-time rates will significantly increase the cost of taxi journeys, particularly for those who rely on taxis to get home safely at night. This will disproportionately affect workers in the hospitality, entertainment, and nightlife sectors.

The company believes this move will negatively impact the night-time economy and fails to address the ongoing taxi shortage.

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They also point to the NTA’s Taxi Driver Survey published in August 2024 which found that only 14% of current drivers would be encouraged to start driving nights with increased prices, while only 19% of drivers stopped working nights as it was not financially worth it. 

In September, the NTA announced that fares are to increase by 9% from December 1. In addition to the 9% fare increase, the fee for pre-booking a taxi will also increase from €2 to €3. The "special rate," which currently applies to taxi fares during Christmas and New Year's, will be extended to weekend peak times, meaning that taxis taken at this time will cost users €2 per kilometre, on top of the pre-booking charge and the initial charge.

Head of Uber Ireland, Kieran Harte said “Raising taxi fares will have significant negative consequences for night-time economy workers who depend on taxis for safe transportation. Being the only door-to-door public transport service, taxis are a vital part of Ireland’s transport network, especially at night.

This decision will not only discourage people from enjoying the night-time economy but will also harm businesses that rely on late-night trade. Ireland is already more expensive compared to the UK, France, USA and Australia while this decision will penalise users further”.

Uber, as a member of the Taxis for Ireland Coalition, argued that increasing fares is not a sustainable solution to the taxi shortage. Instead, they are calling for practical measures to attract and retain more drivers, such as improving driver and customer safety, reducing the cost of entry for new drivers and updating the SPSV Driver Entry Test’s specific geography-based knowledge requirements.

To alleviate the financial burden on customers during the festive season, Uber is offering a 20% discount on all trips throughout December with the promo code ‘BEATTHEHIKE’. This initiative aims to encourage people to continue using taxis, enjoy the festive season and support local businesses.

While Uber says it is cognisant of the increased costs faced by drivers, it notes that increased fares will put pressure on the already struggling night time economy ahead of the busy Christmas period.

They also call on the NTA to focus on implementing policies that will genuinely encourage an increase in the number of taxi drivers and vehicles on Irish roads.

They stress the urgent need for concrete solutions to address the taxi shortage, as previous fare increases have failed to increase availability at peak times.

Harte concluded: "Uber believes that expanding the taxi fleet is crucial to improving reliability and accessibility, particularly in rural Ireland and at night. We, and the Taxis for Ireland Coalition, urge the NTA to implement proactive policies that will lead to a 30% increase in the number of taxis nationwide by 2027."