Federal Government backs Uber

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By Leith van Onselen

Following the implementation of new laws in the ACT, which permit ride sharing services like Uber-X to operate along the lines of a hire car businesses, meaning they can pick-up pre-booked passengers, the Federal Government is considering allowing public servants to use ridesharing, in a bid to save taxpayers money. From The Canberra Times:

Federal Finance Minister Mathias Cormann has asked his department to see if federal public servants can [use Uber].

“Noting that Uber commenced operating legally in the ACT on Friday 30 October, the Finance Minister has requested advice on whether Uber presents an opportunity to reduce the cost of relevant travel and how to best take advantage of this development for travel requirements of public servants and staff of Members of Parliament within the ACT,” a spokeswoman from the Department of Finance told Fairfax Media on Friday.

But any change would only apply for travel in the ACT with the spokeswoman saying: “The Department of Finance will monitor developments in other jurisdictions.”

If the Federal Government does approve the use of Uber-X in the ACT, it would represent a major political win for ridesharing as it battles the incumbent taxi industry in other jurisdictions.

It would also mean that its only a matter of time before the states follow the ACT’s lead and deregulate the transport industry to facilitate ridesharing.

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Looks like it’s last drinks for the taxi monopoly.

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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.