THE TAXI INDUSTRY FIGHTS BACK
The problem with being a successful new entrant in the market is you tend to upset existing players. The entrenched and powerful taxi industry has vehemently fought the advent of Uber, both in public and behind closed doors.
The NSW Taxi Council argues that, instead of reviewing rules to regulate ride-sharing, the government should uphold the existing laws that make it illegal.
“Ride-sharing is a for-profit enterprise that provides illegal taxi services. It places the public at risk through the lack of proper government-backed checks and compliance measures for drivers and vehicles, and it directly undermines the efforts of hardworking and law-abiding taxi drivers, operators and owners,” the council said in response to the IPART report.
“Operating under the guise of the ‘shared economy’, ride-sharing, and specifically UberX, are exposing both drivers and customers to increased risk through (but not limited to) noncompliance with the law, including the non-adherence to the government required checks for authorities and licences; inadequate or no insurance; no workers’ compensation insurance; no industrial relations arrangements; and the insidious practice of surge pricing.”
Australian Taxi Industry Association chief executive Blair Davies told news.com.au that licensed taxi drivers underwent vigorous background checks as well as a series of training sessions that covered everything from customer service to road geography.
“We’re an open economy but you have to play by Australian laws. Why not have your drivers go through the process of meeting all the requirements?” he toldnews.com.au.
Mr Davies also said there was no need for extra licences in the market.
He said Uber drivers should compete against licensed taxis for customers within the existing system. Essentially, he’s saying Uber drivers should become taxi drivers.
While further growth of ride-sharing seems inevitable to many, Mr Davies disagreed.
“I would say to you that there’s nothing inevitable about it. There are a number of scenarios that could play out. There are plenty of unhappy Uber customers that have taken to social media,” he said.
The unhappy customers Mr Davies refers to include those who were shocked by their final bill when catching the high-end Uber Black service during surge-pricing peak periods, such as New Year’s Eve. Mr Davies likens Uber’s surge pricing to “extortion”.
It hasn’t all been smooth sailing for Uber, despite its $US40 billion valuation. The company has been plagued with a string of global PR disasters. These include the furore over a high-level executive, which claimed to have set aside $US1 million to target journalists critical of its operations.
The taxi industry also points out that it provides a service for disabled Australians with many accessible cars, whereas Uber does not.