City Taxis and Uber explain reasons behind fare increases in Sheffield

City Taxis sent an email to its regular customers explaining that increases in fuel prices are behind their company’s price increase.

The firm said: “In light of the recent well publicised rise in fuel prices, City Taxis have taken the difficult decision to apply a small increase to our minimum fare with effect from midday on Friday, March 18.

“Passing price increases onto our customer base is not a decision we take lightly, and this step is being taken purely in the interest of helping our drivers absorb a sudden increase in their running costs.

“We will continue to monitor and review the situation with regards to our prices going forward.

“Thank you for your understanding.”

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Uber’s prices also went up this week following a recent High Court ruling forcing the company, which operates a ride-hailing app to start charging VAT.

The company had argued that it should not have to pay the tax on fares as it is a software firm connecting customers to drivers, rather than a transport business but the argument was thrown out.

Uber said prices are going up across the UK and the rise will vary from city to city.

An Uber spokesperson said: “We have completed the changes to our business model as required by law.

“Uber operates in an intensely competitive market and we are committed to always offering consumers affordable prices. As always, riders will get a trip price before booking their journey.”