{"id":54865,"date":"2023-10-20T16:29:09","date_gmt":"2023-10-20T16:29:09","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/when-uber-is-legal-the-taxi-industry-will-have-nowhere-to-hide-startupsmart\/"},"modified":"2023-10-20T16:29:09","modified_gmt":"2023-10-20T16:29:09","slug":"when-uber-is-legal-the-taxi-industry-will-have-nowhere-to-hide-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/when-uber-is-legal-the-taxi-industry-will-have-nowhere-to-hide-startupsmart\/","title":{"rendered":"When Uber is legal the taxi industry will have nowhere to hide – StartupSmart"},"content":{"rendered":"
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In the latest instalment of Uber versus the taxi industry, the Taxi Industry Forum of WA has conceded the sector could have done better. Responding to a Western Australian Government green paper<\/a> into the \u201con demand\u201d transport industry, it has reportedly<\/a> criticised the UberX model, but also admitted its own failure to keep up with technological advances and changing consumer expectations.<\/p>\n

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Digital disrupters such as Uber have been praised<\/a> by industry commentators for promoting a sharing economy that challenges established oligopolistic transport providers and bypasses government regulation.<\/p>\n

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So there was some irony in last month\u2019s announcement<\/a> from the ACT Government, home of bureaucratic regulatory activity, that it will pass laws to make Uber \u201clegal\u201d.<\/p>\n

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The proposal has been condemned by taxi providers, who have consistently used established law<\/a> to try and shut down ride-sharing options, both in Australia and overseas. Conversely Uber has praised the move as enlightened recognition of the opportunities offered by new technologies.<\/p>\n

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For consumers, placing taxis and Uber on a more level playing field should promote competition, reduce costs and buttress safety.<\/p>\n

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Still not a taxi service<\/b><\/p>\n


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In legal terms, Uber operates along the lines of a hire car business<\/a> rather than a taxi service. This will not change under the new ACT law<\/a>. Uber will not be able to pick passengers up from taxi ranks or be hailed on the street.<\/p>\n

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Reduced licence fees should mean cheaper prices for consumers. The bar to Uber operating \u201clegally\u201d as a hire car business in most states and territories is the high cost of a licence (A$40,000 in Victoria) and\/or the requirement that a hire car be a luxury vehicle. These requirements are of course an anathema to UberX, which is premised on ordinary people sharing rides in ordinary cars.<\/p>\n

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Under the proposed ACT laws, licencing fees for taxis and hire cars will be reduced, while some new, fairly minimal fees will be imposed on ride sharing operators to cover licensing and accreditation.<\/p>\n

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For established services these reductions are significant. Taxi vehicles in the ACT currently pay a A$20,000 licence fee. Under the proposed reforms this fee will be reduced to A$5,000 in 2016 in the ACT. The licence fee for ride share drivers will be A$100 or A$400 for five years.<\/p>\n

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Given there will be a degree of competition in the market, one would expect this reduction in licence fees to be passed onto consumers on the form of lower prices for taxis and hire cars, as well as more opportunities for ride sharing. In addition, the proposed reforms aim to allow both taxi and ride share drivers to access more than one online \u201ctransport booking service\u201d potentially further increasing flexibility and competition.<\/p>\n

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Safety improved<\/b><\/p>\n


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The proposed ACT reforms will impose basic safety and consumer protection standards including requirements for:<\/p>\n

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