Victoria’s Taxi Services Commission (TSC) is taking court action against a dozen drivers from ‘ride-sharing’ company Uber in an effort to regulate its controversial business in the state.
The TSC’s intervention follows an undercover investigation, aimed at gathering evidence that would enable harsher penalties to be inflicted on Uber drivers beyond the current $1,700 fine.
Victorian Taxi Commissioner Graeme Samuel says Uber is ignoring regulators.
“I’d have to say, in their operations over the past 12 months they’ve not been gaming the regulators, they’ve just actually been thumbing their nose at them,” Mr Samuel told the ABC.
Uber drivers use their own vehicles as taxis to collect passengers who have requested a car using Uber’s smart phone app.
Uber’s general manager in the United States David Rohrsheim said he was “proud to say Australians have been rapid adopters of ride sharing.”
Mr Rohrsheim added that with millions of rides being taken with Uber since its launch in Australia, it was “a clear sign that people are looking for another alternative”.
Uber claims thousands of unlicensed drivers have been signed up, despite the fact they face fines of $1,700 in Victoria if caught.
Neos Kosmos understands 80 infringement notices have been issued to Uber drivers in Victoria to date and a total of $130,000 in fines – all of which have been paid by Uber rather than the drivers.
Uber’s latest company valuation is $49 billion and it is believed to be preparing to float on the US stock market.
Over the past five years the company has spread to 50 countries and 250 cities.
Melbourne taxi operator Harry Katsiabanis told Neos Kosmos that state regulators are seemingly powerless to stop Uber’s infiltration of the market.
“The TSC is fighting a difficult beast. We need a new law which says if you’re providing a taxi service in an unlicensed vehicle, your vehicle should be impounded for a first time offence, and crushed if there are repeat offences.”
Mr Katsiabanis said that Victoria and other states could adopt measures taken by the Singapore government, which mandates all taxi smartphone apps must be approved by government.
“These Uber people are very smart. They don’t care about public transport. They just want to grow their company so they can list it on the stock market.”
In WA this week it was revealed that more than 40 drivers in the state linked to Uber would be issued with notices, ordering them to hand over financial records and documents as part of the state government’s crackdown.
Drivers for the Uber Black premium service, which launched in Perth in May, have already been hit with 11 infringements and 30 cautions. The new notices target drivers using the Uber X platform.
WA’s Department of Transport has sent the ‘notice to produce’ orders to 42 individuals it suspects of operating a taxi vehicle contrary to the state’s Taxi Act.
On Monday, the French government announced that the company’s UberPop service would be banned from January 1. The ban follows action by policy makers in Amsterdam, Brussels, Berlin and Delhi who have vowed to make Uber’s services illegal.
The TSC’s court case against 12 Uber X drivers will be heard at the Melbourne Magistrate’s Court on February 5.