I wrote last week how Uber was taking the fight to Australia’s taxi cartel by expanding its offering in Australia, offering a ridesharing option that would significantly undercut traditional taxi fares and provide consumers with greater transport options.
As expected, the rent seeking taxi industry came out in force, opposing competition and demanding greater regulation on the grounds that Uber was endangering customers.
Well, the taxi cartel appears to have won out, yet again, with the New South Wales Government announcing that it would ban ride sharing applications:
“The law is clear and has not changed: if a NSW driver is taking paying members of the public as passengers, the driver and the vehicle must operate in accordance with the Passenger Transport Act,” Transport for NSW said in a statement on Wednesday morning.
“Under the act, such services must be provided in a licensed taxi or hire car, by an appropriately accredited driver, authorised by Roads and Maritime Services,” the statement said.
Those who operated a public passenger service in breach of the Passenger Transport Act may faced prosecution and fines of up to $110,000…
As noted last time, 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.
Provided the driver has adequate insurance and pays their taxes, there should be no problem from a regulatory perspective.
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.
