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Ride- sharing services legalised in Tasmania, with Uber expected by Christmas

Tuesday, 8 Nov 2016 13:48:33

An Uber user holds a mobile phone displaying the app screen with the location set to Brisbane, January 2014 (ABC News: Tim Leslie)

Ride-sharing services could be operating in Tasmania by Christmas, with the State Government exempting prospective drivers from needing a special licence to carry paying passengers.

"Today, I am delighted to announce that ride-sharing is now legal in Tasmania," Transport Minister Rene Hidding said in a statement, adding the move had been prompted by the Tasmanian Young Liberals.

"I now look forward to an announcement in the near future about a starting date for Uber before Christmas."

Uber Tasmania welcomed the decision and said it would work closely with the Government so that it could begin operating as soon as possible.

Earlier this year, the company raised doubts about its future in Tasmania, saying the service was not like hire cars and legislation could impose "barriers".

Earlier this month, the head of the Tasmanian Taxi Council, Roger Burdon, said the arrival of ride-sharing services was inevitable.

"We've got two choices really: the likes of Uber can come to Tasmania with some regulation to follow or they can come with no regulation, which is what they've done in the rest of Australia," he said at the time.

Mr Burdon agreed with advice from the Government that wearing a uniform would help set taxis apart from their new rivals.

"I think they look smart, a driver dressed up in a shirt and a nice looking pair of pants is second to none in my view, it's all about presentation," he said.

How does ride sharing work?

In the case of the industry's best-known player Uber, people sign up to the service and use the company's smart phone app to request a vehicle, with the closest "driver-partner" found using the app's GPS mapping technology.

A taxi light Photo: Taxis are equipped with CCTV, while Uber cars may not be. (ABC News: Gary Rivett)

The fare is paid through the app, with no cash changing hands and the company takes a percentage of each fare.

Uber drivers must undergo criminal and driving-history checks and use their own vehicles which must comply to a set of standards.

Uber also offers a luxury and an economy version of its service which relates to the type of car provided.

GoCatch, is an Australian company, launched in early 2016 to take on Uber, and uses a similar business model.

Is it cheaper than a taxi?

Uber has come under fire for its "surge pricing" fare increase during periods of heavy demand, but the company has defended the practice, saying it is "to ensure reliability and availability for those who agree to pay a bit more".

A 2015 report by consumer advocacy group Choice pitted Uber's "low cost" service, UberX against taxis, on 28 trips using the same pickup and destination points.

Choice reported:

  • UberX was cheaper than a taxi around nine times out of 10. Taxis were 40 per cent more expensive than UberX on average.
  • On the three occasions UberX was more expensive, it wasn't by much - and it was only when surge pricing was in place.
  • Of the 28 UberX rides, we encountered surge pricing four times.
  • Taxis showed up quicker on average. This, however, was due to the convenience of hailing one off the street; when taxis were booked they tended to take longer to show up than UberX. There were also two times taxis didn't show up at all, pointing to an issue with reliability.
  • On one occasion out of 28, there was no UberX available (the rider caught the next cheapest available option, UberTaxi).
  • Taxis scored an average of 6.7 for the overall experience while Uber scored an average of 8.3.

Uber has said driver-partners can turn their car into a "money machine", with the "freedom and flexibility to drive whenever you have time".

One UberX driver said he had taken up with the company as "a personal experiment regarding it's viability", working for a two week period during surge pricing peak periods of higher fares.

The driver posted in a web forum he had made an average of $38 an hour over the duration - however after expenses the figure dropped to around $22.

"As a pizza delivery guy, I net $26 per hour including typical tips in similar hours," the driver said.

Are there safeguards in place?

While taxis are fitted with surveillance cameras, private cars used by Uber drivers may not be.

Uber has said that the GPS technology of its app is a safety feature and recommends to a rider "share your ETA with your friends and family so they can follow your route and know when to expect you".

Uber drivers and passengers are asked to "rate each other and provide feedback before requesting or accepting another ride".

"Should you choose to leave a 1 Star rating for a rider, you will not be matched with that person again," Uber's website states.

Uber said its app sends a driver's image and details - including their rating - to riders, "so you know who's picking you up ahead of time".

There have been a number of incidents involving ride sharing, with a 50-year-old Perth Uber driver being found guilty of assaulting a 20-year-old female in February,

In the US, Uber driver Jason Dalton allegedly went on a weekend killing spree in Michigan, shooting six dead in the town of Kalamazoo in February.

In 2015, a 17-year-old girl allegedly attacked an Uber driver with a machete before attempting to steal his car in Brisbane.

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