Ride-sharing company Uber is increasing its fares in Melbourne as it tries to address driver dissatisfaction over conditions and pay.

From Friday UberX drivers in Melbourne will charge passengers $1.15 per kilometre, up from $1, combine with 35¢ per minute up from 32¢.

Uber fares will go up in Melbourne from Friday.

The base fare of $2 and the booking fee of 55¢ will remain unchanged, and Uber will continue to pocket 20 to 25 per cent of the fare.