Uber has announced that the minimum fare for rides has increased in South Africa effective 31st July 2018.

Previously, the minimum fare was R20 but now it has increased to R25. The firm said in an email to customers that trips originating from Soweto will still have a minimum fare of R20.

Uber has also increased the minimum fare for UberGO in Port Elizabeth from R17 to R20.

While we’re loathe to pay more for most things, when it comes to Uber we really don’t mind.

You might know that Uber takes 25 percent of any fare which means that at the old rate drivers would make a minimum of R15 before you account for fuel, airtime and wear on the vehicle.

This new fare means drivers walk away with R18.75 for the shortest fare possible.

Uber has also begun rolling out something it’s calling a Tiered Service fee.

“To show our appreciation and recognition of our driver-partners’ loyalty, we are currently rolling out a pilot Tiered Service fee. The more trips completed by a driver-partner and the higher their rating, the lower their weekly Uber service fee is,” the company said.

Uber has a rather tricky balancing act on its hands at the moment.

On one side drivers are demanding fares be increased so that their returns are higher. On the other side you have riders who want an affordable fare. The company has to try to make everybody happy while turning a profit and perhaps this slight increase will help to ease tensions felt by driver partners.