Hire Car News: UberX are ‘cheap copies’ of taxis

This post was originally published on news.com.au

After a detailed story on news.com.au on Monday that examined the stoush between taxis and UberX, the Australian Taxi Industry Association (ATIA) has released a statement that rejects as “complete fiction” claims that it is anti-competitive and has influenced governments to stand in the way of ride-sharing services.

“Ride-hailing services are illegal because they refuse to operate with properly licensed drivers or use properly licensed vehicles,” ATIA chief executive officer Blair Davies said.

“They are imitation taxi services, and just like many cheap copies or fakes, they take shortcuts on the things that consumers can’t see.”

UberX, which is growing in popularity in Australia’s capital cities, is a point-to-point ride-sharing service where private individuals use their own cars to drive passengers for a fee.

The alternative mode of transport has quickly found favour with customers thanks to its cheaper prices, cashless payments, GPS technology that allows cars to be tracked, open feedback system and good customer service.

The Uber app tracks available rides via GPS technology. Picture: AP Photo/Mary Altaffer

The Uber app tracks available rides via GPS technology. Picture: AP Photo/Mary Altaffer Source: AP

However, the service has fallen foul of Australian laws, with drivers in NSW and Victoria copping fines and being brought before the courts for breaking passenger transport legislation, which requires drivers and vehicles to be licensed.

Mr Davies said the taxi industry was not anti-competitive because it held the view that the government should uphold laws that kept consumers and workers safe from harm.

“It’s not competition that is the issue here,” Mr Davies said. “It is the safety of the community and working conditions of drivers that we are concerned about.

“There should not be one set of laws for legitimate taxis and another de facto set for imitation taxis. A fair go for all requires equality under the law.”

UberX’s Australian general manager, David Rohrsheim, said the company was lobbying state governments throughout Australia to regulate the growing ride-sharing sector.

While Mr Rohrsheim urged governments to be “forward-looking” and adaptive to new technology, NSW and Victoria has hit UberX drivers with fines and court attendance notices for breaking transport laws.

“I find that disappointing,” Mr Rohrsheim told news.com.au. “It’s clearly not what the riders and customers in NSW and Victoria want the government to do. People want safe and reliable rides and that time and money that could be spent on having a look at ride-sharing.”

Morning rush hour commuters line up for cabs outside Grand Central Station in New York Ci

Morning rush hour commuters line up for cabs outside Grand Central Station in New York City. Picture: AP Photo/Mary Altaffer Source: AP

UberX has met with NSW Transport Minister Gladys Berejiklian once and Mr Rohrsheim said he was eager to be part of future discussions.

“We don’t expect to continue to work without regulation,” Mr Rohrsheim toldnews.com.au.

Uber has attempted to make this a state election issue, with the company encouraging customers to email candidates to say they are in favour of the introduction of “sensible ride-sharing regulations”.

“Every day there are more riders and their voices are growing louder,” Mr Rohrsheim said. “One by one they are telling their local members, ‘I like this’.”

But the taxi industry says that UberX doesn’t cater for all Australians.

“UberX undoubtedly has its supporters, but that doesn’t mean their views are reflective of the wider Australian community,” Mr Davies said.

“UberX doesn’t cater to people who don’t have access to a smartphone or credit card, people living in fringe areas or with a disability, probably because it’s just not profitable enough.”

The taxi industry says UberX rides operate with inadequate insurance, a claim that has been backed up by the Insurance Council of Australia.

The council says that drivers and passengers may expose themselves to substantial financial loss if they are involved in a crash.

“Any passengers that use a ride-share service, or any motorist offering a ride-sharing service, should be aware of the high level of uncertainty about how their insurance policies may respond as a result of an incident,” the council’s chief executive officer, Rob Whelan, said.

The taxi industry says UberX has been declared illegal by the authorities because it fall

The taxi industry says UberX has been declared illegal by the authorities because it falls short of safety and accessibility standards. Picture: AFP/DPA/Britta Pedersen Source: AFP

But Mr Rohrsheim said that every UberX ride has $5 million insurance cover.

However, a Insurance Council spokesman told news.com.au that if vehicles were used in illegal acts, it was unlikely that the insurance cover would be paid out.

The taxi industry also says that ride-sharing discriminates against people who use wheelchairs. Uber has confirmed that the only way for its customers to book a wheelchair-accessible vehicle is to book a taxi through its app.

But Mr Rohrsheim said the it was important to note that there was only one sector of the community that was speaking out against the growth of ride-sharing.

“The only gripe is from the established taxi owners. So they are the only voices speaking against it, hoping their business will be protected against new technology” he said.

The ATIA says it wants a “level playing field” but Mr Rohrsheim said this should not come at the expense of progress.

“Horse and cart operators would have wanted a level-playing field when the automobile arrived and newspapers would have wanted a level-playing field when the internet arrived,” Mr Rohrsheim said.

Read more: http://www.news.com.au/finance/business/uberx-are-cheap-copies-of-taxis-industry-group-says/story-fnkgde2y-1227277976254