PRICE RISE: 20% INCREASE to Uber fares set to come into effect from Monday

Uber fares will rise by 20% from Monday according to a report by the Guardian.

Uber had recently said it would have no choice but to increase its fares to cover VAT costs following a High Court ruling which determined that they were in fact acting as a booking service and a contractor for private hire drivers, and should therefore operate in accordance with the rules and regulations put in place by the capital's transport regulator Transport for London.

The additional VAT is said to be charged within the fare and not displayed to the passenger.

It is also understood, according to sources, that Uber may effectively subsidise some fares, but this is yet to be confirmed.

App users have been notified on a change in the terms and conditions which will mean passengers contract directly with Uber, rather than the driver, from 11.59pm on Monday.

TaxiPoint has approached Uber for comment and more details.