Uber’s ACT win a giant step for ride sharing

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By Leith van Onselen

The brawl between ride sharing service, Uber-X, the taxi industry and state government regulators has been a sight to behold.

Across the country, Uber-X drivers have been hit with millions of dollars in fines and in some cases had their vehicle registrations suspended. The taxi industry has also been applying strong pressure on regulators to ensure that Uber drivers pay the same license and registration fees as taxis.

However, in a landmark policy shift, the ACT Government has finally granted Uber-X regulatory certainty. From 30 October, new laws will allow Uber-X to operate legally provided its drivers are registered and accredited, and they pay to undergo police and vehicle safety checks.

Uber-X drivers will also only be allowed to pick-up passengers pre-booked via the company’s App, and will be precluded from picking-up passengers from cab ranks or accepting hails from the roadside.

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The ACT Government will also reduce taxi license fees from $2000 to $500, thus mitigating the pain on the industry.

The Victorian Government also indicated on Tuesday that it was preparing to regulate pre-booked ride-sharing, with Premier Daniel Andrews telling reporters that he’s “concerned to make sure that we properly regulate the pre-booked only trade”.

With an estimated 15,000 Uber-X drivers currently operating in Australia, and the obvious benefits to consumers from ride sharing, regulation is long over due.

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Thus, it’s good to see Uber and the ACT (and possbibly Victoria) come to a sensible agreement about ride sharing’s worthwhile place in the transport landscape. Now it’s only a matter of time before the other states quit dragging their heels and follow suit.

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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.