In the latest instalment of Uber versus the taxi industry, the Taxi Industry Forum of WA has conceded the sector could have done better. Responding to a Western Australian Government green paper into the “on demand” transport industry, it has reportedly criticised the UberX model, but also admitted its own failure to keep up with technological advances and changing consumer expectations.
Digital disrupters such as Uber have been praised by industry commentators for promoting a sharing economy that challenges established oligopolistic transport providers and bypasses government regulation.
So there was some irony in last month’s announcement from the ACT Government, home of bureaucratic regulatory activity, that it will pass laws to make Uber “legal”.
The proposal has been condemned by taxi providers, who have consistently used established law to try and shut down ride-sharing options, both in Australia and overseas. Conversely Uber has praised the move as enlightened recognition of the opportunities offered by new technologies.
For consumers, placing taxis and Uber on a more level playing field should promote competition, reduce costs and buttress safety.
Still Not A Taxi Service
In legal terms, Uber operates along the lines of a hire car business rather than a taxi service. This will not change under the new ACT law. Uber will not be able to pick passengers up from taxi ranks or be hailed on the street.
Reduced licence fees should mean cheaper prices for consumers. The bar to Uber operating “legally” as a hire car business in most states and territories is the high cost of a licence (A$40,000 in Victoria) and/or the requirement that a hire car be a luxury vehicle. These requirements are of course an anathema to UberX, which is premised on ordinary people sharing rides in ordinary cars.
Under the proposed ACT laws, licencing fees for taxis and hire cars will be reduced, while some new, fairly minimal fees will be imposed on ride sharing operators to cover licensing and accreditation.
