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Review pushes states on Uber

Apr 01, 2015

States should bring in regulations to deal with the emergence of ride-share companies such as Uber, a new report says.

But the national competition policy review by Professor Ian Harper says rather than crack down on what the taxi industry sees as cowboy competitors, they should be encouraged.

“Any regulation of such services should be consumer-focused, flexible enough to accommodate technical solutions to the problem being regulated and not inhibit innovation or protect existing business models,” the report released on Tuesday said.

The report listed taxi industry competition as a priority area of reform, which should be concluded within 12 months.

The Taxi Council told the inquiry mobile app-based services such as Uber were “illegal, de facto taxi services”.

A number of state and territory governments have determined that Uber is acting outside current industry regulations and issued fines to Uber drivers.

Uber general manager David Rohrsheim told AAP it was time for states and territories to show some leadership and put consumers first.

Rohrsheim said a useful first step would be for governments to adopt ride-sharing laws or regulations similar to those used in the United States.

In the US, firms such as Uber – which link private drivers and people seeking a ride – are defined as “transportation network companies”.

Drivers must have criminal background checks, undertake training and have liability insurance.

“Car pooling is decades old – we’ve just made it very easy to share rides,” Mr Rohrsheim said.

“We want the states to embrace the wishes of consumers and put in place regulations.”

The South Australian Government last year approved Uber’s “Black” service, which uses accredited hire cars and drivers.

However, the State Government flatly ruled out approving Uber X – a ride-sharing service which recruits ordinary motorists with cars that reach a certain standard approved by Uber.

– AAP, with additional reporting by InDaily

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