South Australia’s Uber ban doesn’t hold water

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ScreenHunter_3920 Aug. 25 14.12

By Leith van Onselen

The South Australian Government has joined the other mainland states in banning Uber’s ridesharing service on public safety grounds. From The Canberra Times:

Treasurer Tom Koutsantonis says the service could put vulnerable passengers at risk.

“People get into taxis and hire cars late at night, they may have had a bit to drink (or) they may have had a very, very big night,” he told ABC radio on Monday.

“It’s a very dangerous option to take an Uber service – you don’t know who’s driving the car.

“You don’t know if the car has been checked and, most importantly, we can’t know when you got into that car and where you got out of that car or where you were meant to go.”

Mr Koutsantonis said Uber was operating illegally in South Australia and the government would issue fines to any drivers offering a ride under the Uber service.

Quite frankly, Koutsantonis’ claims do not pass the laugh test.

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Unlike taxis, where it is pot-luck who your driver is, Uber allows customers to view the drivers’ rankings and their reputation via their website, which allows customers some control over who their driver is. It is also in the drivers’ best interest to impress you, as after your journey is complete, you are required to give them a rating out of 5 stars. A low star rating results in less fares for the driver.

Further, journeys are tracked via GPS, which affords an additional level of safety for customers.

As I keep saying, ridesharing should be embraced by the public and policy makers alike for facilitating a more efficient use of the nation’s transport fleet and infrastructure. Not opposed for the sake of protecting the taxi cartel, at everyone else’s expense.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.