Is Uber cheaper than a taxi?

A growing wave of travellers are bypassing taxis and opting to catch rides using controversial service Uber.

Drivers in unmarked cars can pick up the waiting passengers who have requested their service via their smartphone device, but many ask if it's a cheaper alternative to catching a cab, and is it safer?

WHAT IS UBER?

UberX - the cheaper alternative of smartphone-riding app Uber - allows travellers to use the company's smartphone app to book a car and driver and at the same time find out how far away their ride is, who is the driver and how much the service will likely cost.

Uber Black is the company's licensed limo service and provides premium vehicles. It comes at an extra cost.

By entering in your trip's pick-up and drop-off point you can get a fair idea of how much the trip will hit you.

WHAT IS THE COST?

Consumer watchdog Choice's spokesman, Matt Levey, says consumers should use Uber's fare estimate calculator before booking a car to ensure they are paying a reasonable charge. By entering in your trip's pick-up and drop-off point you can get a fair idea of how much the trip will hit you.

In QLD, Taxis charge users per kilometre regardless of whether they are moving or stuck in traffic or at the lights, whereas Uber's pricing charges riders per kilometre and per minute. Levey says it's difficult to compare unless you travel the trips in the same travel conditions using both services.

NO MONEY EXCHANGE 

Many taxi users complain about getting stung by exorbitant surcharge costs when paying their cabbie by card.

Uber users get around this because transactions are all done electronically. Uber users register their bank account details or PayPal information with the service , and when the ride is complete their account will be deducted with the amount charged.

SAFETY

Levey says using Uber is safer because the passenger knows who their driver is and there's no exchange of cash.