Uber good! NSW to become second state to legalise ride-share app
NSW has become the second Australian state to legalise Uber in a major reshaping of the taxi industry.
Uber drivers will be forced to pay license fees and undergo strict background checks while banning those who have criminal records.
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The new laws are set to be announced by Transport Minister Andrew Constance next month.
Taxi drivers will be granted the right to 'rank and hail’ and Uber drivers only get rides through the app.
Similar to the NSW reforms, ACT Uber drivers are require drivers to be registered and accredited and must undergo health checks every five years, be drug-free and have a zero blood alcohol level.
Customer complaint services will be available and drivers will be required to pay a $600 application fee and a $50 accreditation fees.
Uber drivers who accept cash must have a camera installed inside their vehicles but most of the payments will be made via credit card.
Government sources have allegedly described the changes as “inevitable" and Uber vehicles will undergo regular safety inspection.
Taxi owners will be compensated for losing full control of the market and taxi plates, which can cost up to $320,000, will be reduced.
Taxi licence fees have also been reduced due to Uber entering the market from $20,000 to $10,000, and may even steep further to $5,000 within a year.
The new reform comes after Canberra became the world's first capital city to legalise Uber services in October.
Uber launches in Canberra
Controversial ride-sharing app Uber launched in the ACT on October 30, despite strong opposition from the region's taxi operators.
The company insists support for the service is otherwise 'unanimous', believing it will deliver choice and ultimately, lower travel costs.
"[The taxi] industry is long overdue for change and competition," Uber Australia CEO David Rohrsheim told PRIME7 News.
"It has lots of regulation and cost, but the ACT Chief Minister has now addressed that, and I expect further innovation and reform in the taxi sector."
Just like NSW, the new rules include criminal and driving record checks for Uber drivers, and safety checks on their cars.
"These laws enshrine what we are already doing, the practices we already have, elsewhere in Australia," Mr Rohrsheim said.
100 Uber drivers have since been accredited in the ACT, and will be able to hit the road from today.
Uber says it's unsure whether that number of drivers will be able to keep up with demand, but is hopeful locals will like the service.
"We're excited to be here, we'll soon find out, we do ask for patience, as this is just our first day," Mr Rohrsheim said.
Uber has a network of 15,000 drivers nationwide, and has completed more than 10 million rides so far.
