I reported last week how it looked as if Victoria could approve ridesharing in Victoria, provided “drivers were properly licensed and had been through checks”. I also noted how ridesharing applications, like Uber, could significantly undercut traditional taxi fares and provide consumers with greater transport options.
It appears that I may have been premature in praising Victoria, with the state’s Taxi Services Commissioner and former ACCC head, Graeme Samuel, threatening drivers with fines unless they cough-up $60,000 for a car and licence:
He [Samuel] confirmed his office had started to investigate several drivers using the services without taxi or hire car licences, with the threat of fines up to $2500 if successfully prosecuted…
The [Taxi Services] commission has implemented measures that would halve the cost of establishing a hire car service to $60,000 for a car and licence, a move Mr Samuels argued meant Uber could still create a legally viable and cheaper alternative to taxis.
This is a disappointing result. Requiring rideshare drivers to pay the Government tens-of-thousands of dollars ($40,000 per hire care licence according to the Taxi Services website) in order to provide what is essentially a simple and straight forward service is a means of restricting competition to the taxi industry, raising prices for consumers and limiting choice.
All that should be required is meeting basic performance standards, a valid driver’s licence, and a registered and road worthy car. Adults in Australia should be free to choose their transport options, not have them dictated to by the Government for the purposes of protecting the taxi cartel.
At least with ridesharing services like 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 taxis often being some of the worst drivers on the road.
As I said last time, ridesharing should be embraced by the public and policy makers alike for facilitating a more efficient use of the nation’s transport fleet and infrastructure. Not opposed for the sake of protecting the taxi cartel, at everyone else’s expense..
