I wrote yesterday how the New South Wales Government had seemingly capitulated to the taxi cartel and banned ridesharing applications that could significantly undercut traditional taxi fares and provide consumers with greater transport options.
Today, reports have emerged that Victoria’s Taxi Services Commissioner and former ACCC head, Graeme Samuel, could approve ridesharing in Victoria, provided “drivers were properly licensed and had been through checks”:
“What we want to do is to facilitate competition and we see Uber as a source of competition,” Mr Samuel said. “But it needs to be competition that is on grounds to protect the public interest.”
Meanwhile, Uber has hit back at the New South Wales Government’s ban on ridesharing, claiming the Government is depriving citizens of the ability “to get a safe, reliable ride when and where needed”:
“We’re confident that in the long run, rather than continue to shield entrenched taxi interests from new competition, Transport NSW will stand up for consumers and drivers.”
As I have stated repeatedly, 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. Taxis are also some of the worst drivers on the road and often break numerous road rules (including speaking on their mobile phones).
Moreover, Uber’s ridesharing option provides potential productivity and environmental benefits for the nation, by increasing the “yield” of the nation’s car fleet (i.e by moving more passengers), in turn reducing congestion and lowering overall fuel use and emissions.
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..
