Govt approves Uber in SA
The State Government has given controversial taxi competitor Uber the go-ahead to operate its service connecting passengers with limousine drivers in South Australia.
After receiving an initially hostile reception from the Government, Uber has now received official approval to operate its “UberBlack” service, which allows passengers to book accredited hire cars in a way which competes directly with the state’s taxi industry.
Uber Australia’s general manager David Rohrsheim told InDaily that Transport Minister Stephen Mullighan’s decision would remove uncertainty and allow Uber to grow its South Australian business.
“He (Mullighan) made it clear his priority was safety for passengers and drivers, not protecting established interests, and he has proven that today with a sensible pro-innovation decision,” Rohrsheim said.
“This decision removes the ambiguity and opens the way for Adelaide’s hire car drivers to use UberBlack to grow their business – some have already bought additional cars to keep up with the opportunity. It also means it will be easier to get a ride, especially at a time of year when Adelaide needs it most.”
Rohrsheim said the South Australian decision was a nation-leading one for Uber and “we look forward to having such constructive conversations in all states”.
Mullighan said he was “pleased” to announce the approval of the UberBlack service.
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“Following several meetings with the company where important issues around safety and access to records were resolved, existing accredited hire car drivers and their accredited vehicles will now be able to provide hire car services using the UberBlack booking service,” Mullighan said.
“Uber Australia has taken welcome steps to ensure that UberBlack meets South Australian requirements for passenger and driver safety.”
However, he stressed that the ridesharing service UberX – which connects unaccredited drivers with people looking for a ride – was not legal in South Australia.
Rohrsheim said he was eager to talk to the State Government about updating regulations to allow ride-sharing.
“I’m confident of being able to work with the Government to resolve any issues around UberX,” he said. “We hope to see the Government approach ridesharing policy with the same focus on safety and the best interests of consumers we saw with their review of UberBLACK.”
Opposition transport spokesman Corey Wingard welcomed the Government’s decision, however he questioned the length of time it had taken to resolve the issue.
“We have got to get on the front foot in South Australia,” he said.
Greens MLC Mark Parnell also welcomed Mullighan’s decision to “bring Uber into the tent, rather than trying to resist the tide of consumer preference”.
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“His attitude is in stark contrast to former acting Transport Minister, Tom Koutsantonis, who only four months ago was railing against the service and threatening prosecution,” Parnell said.
“Whilst we understand that traditional taxi operators are nervous of new players, they will still have a monopoly on working taxi ranks and accepting hailed bookings off the street. For customers who want to book using their smart phone and who want the confidence of knowing exactly when their car will arrive and who’s driving, Uber will no doubt be an attractive option.”
In October, the Greens convened a briefing on Uber in State Parliament that was attended by MPs from all parties.
Uber has attracted controversy in every jurisdiction in which it operates. Taxi drivers in South Australia have warned that they could go bankrupt if Uber is allowed to operate here.
Uber, which is backed by American tech heavyweights Google, started operating in South Australia in August, immediately attracting the ire of then acting transport minister Tom Koutsantonis, who described the service as dangerous and illegal.
Wingard said today the rift between Koutsantonis and Mullighan was concerning.
In September, InDaily exclusively reported that the Government’s Accreditation and Licensing Centre for the taxi and hire car industry had initiated legal action against 11 South Australian-based Uber partners – both drivers and operators.
However, it seems the only legal sticking point was that the Passenger Transport Act required booking services to have a local presence, so that SA Police and transport officials could easily access driver records in the case of an incident
Uber has now opened a South Australian office, removing that regulatory impediment.
Uber operates via an app that requires passengers to pre-register their details with the service, including credit card details.
Customers can then get a quote for a trip, check if there’s a nearby driver, book the car and then track its progress to their pick-up point.
Customers are sent the driver’s details and photograph. Likewise, the customer’s details are retained by Uber. Then, both driver and customer can rate each other via the app.
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