Today represents a pivotal moment in war between the incumbent taxi industry and upstart ride sharing services like Uber-X.
Last month, the ACT Government finally granted ridesharing regulatory certainty, announcing that from 30 October – today – new laws would allow ridesharing services to operate legally provided their drivers are registered and accredited, and they pay to undergo police and vehicle safety checks.
Under the new laws, ridesharing services like Uber-X would be permitted to operate along the lines of a hire car business rather than a taxi service, meaning they would not be able to pick passengers up from taxi ranks or be hailed on the street.
License costs will also be reduced. Taxi vehicles in the ACT currently pay a $20,000 licence fee. Under the proposed reforms, this fee will be reduced to $5,000 in 2016, whereas the licence fee for ride share drivers will be $100 annually or $400 for five years.
According to The Canberra Times, 280 Uber-X drivers have already passed the government police and vehicle checks, with Uber claiming its rides would be 25% to 35% cheaper than Canberra taxis:
Chief Minister Andrew Barr said… red tape was being “stripped away from this industry”.
Competition was at the core of the change, and would lead to lower prices, higher quality, improved reliability and responsiveness…
With the entry of Uber-X, the taxi industry’s monopoly hold over the ACT will disappear.
Now it’s only a matter of time before the other states quit dragging their heels and follow suit.
