I wrote last week how Uber was taking the fight to Australia’s taxi cartel by expanding its offering in Australia, introducing a range of budget vehicles that will undercut traditional taxi fares, and how consumers stood to benefit from more reliable, clean and affordable transport options.
As expected, the rent seeking taxi industry is opposing competition, claiming that Uber is endangering customers and demanding greater regulation. From The SMH:
The NSW Roads and Maritime Services has requested a meeting with Uber to discuss how the NSW Passenger Transport Act applies to the new service, and how Uber will respond to its obligations under the act. The RMS said it was “looking forward to Uber’s response”…
[Uber] has started to branch out into the “ridesharing” market, allowing anyone to ferry users around in Brisbane, Sydney and Melbourne provided they are at least 24 years old, have insurance, a licence, no criminal record, and own a four-door car that is no older than a 2005 model…
“This has to be dealt with before it gets out of hand,” NSW Taxi Council chief executive Roy Wakelin-King said.
“We have an organisation that is asking people to take on faith a [taxi or hire car] booking system that has no regulatory checks or balances”…
Uber Sydney general manager David Rohrsheim said every low cost ride was backed by third party liability insurance up to $US5 million per incident.
“With more options, consumers win, drivers win and Australia’s cities win,” Mr Rohrsheim said.
In principle, I have no issue with ridesharing, providing basic performance standards are met, and the driver has adequate insurance.
Adults in Australia should be free to choose their transport options. If they do not trust Uber and want to take a taxi. Fine, take a taxi. Similar, if they want to use Uber, let them exercise their choice and do so.
At least with Uber, one gets to see the drivers’ rankings and their reputation via the website, which allows customers some control over who their driver is. It is also in their 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.
By contrast, with a taxi it is pot-luck as to who your driver is, with the driver sometimes not even matching the photo ID on the dashboard.
