Uber has warned there will be surge pricing during the peak of New Year's celebrations, while the taxi association has urged customers to be patient on what will be one of the busiest nights of the year.
Uber surge pricing will be the highest between midnight and 3am on New Year's, a company spokesman has warned, and the increased cost will also apply to its lesser known taxi partnership.
UberTAXI is used by licensed taxi drivers when they can't get conventional fares and had until recently been restricted from applying surge pricing to customers.
An Uber spokesman told AAP the introduction of surge pricing to UberTAXI was aimed to encourage more cab drivers to use the app over the New Year's period, and it would give drivers more options during periods of peak demand over the festive season.
Last year Uber's Facebook page was flooded with complaints following New Year's Eve after the company charged up to eight times its normal rates, leaving some customers with bills in the hundreds of dollars.
For those wanting to avoid surge pricing, a spokesman for the Australian Taxi Drivers Association said taxis were a good bet.
"I think taxis are much better," ATDA spokesman Michael Jools said.
"In the long run taxis are more often cheaper and more reliable, and if things go wrong in a taxi you've got security.
"You can be a lot more sure that in a taxi you'll get home safely without an incident."
Mr Jools said to make your trip home even cheaper people should consider sharing a taxi.
"We've got multiple hiring, which means if passengers agree they can get home for less," he said.
He said if you were happy to share a cab you just needed to let your driver know and they could pick another person up.
While there would be "plenty" of extra taxis on the road, Mr Jools said people should be patient and wait for taxis in safe spaces as New Year's Eve is one of the busiest times of the year.
"Go to [taxi] ranks, don't stand on the roadway, and keep a sense of good humour because sooner or later everyone will get home," he said.
In a statement, an Uber spokesman said "dynamic pricing on UberTAXI" would "improve reliability and wait times for riders".
"This change is encouraging more driver partners to use the app and giving them another option during peak demand over the festive season and New Years," the spokesman said.
"As with UberX, riders will always see a fare estimate in the app before accepting a trip so they have certainty over the price they will have to pay.
"We also encourage riders to check our Ride Smart Tips before New Years with easy tricks to make trips easy and affordable during the busy season."