Premier Mike Baird’s cabinet agreed to legalise the service on Thursday after considering the recommendations from an independent taskforce into the taxi industry and transport providers such as Uber.
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The Baird government and the Labor opposition have both said that owners of taxi licence plates should receive some form of compensation if UberX was legalised.
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The changes to the NSW regulatory framework will allow rideshare drivers to operate provided they obtain a hire auto driver authorisation and have a business registration for their vehicle.
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The government expects that by 2019, the reforms will deliver more than $30 million a year in red tape savings, and benefit consumers through shorter waiting times and more innovative services.
He said the reforms would also pave the way for thousands of new and cheaper services, including a ride-sharing service now being developed by the NRMA.
Taxis will still have the exclusive right to use ranks.
According to the Daily Telegraph, about 5,800 perpetual plate owners will be given a $20,000 flat fee while a compensation fund will be distributed on a case-by-case basis for plate owners who only recently entered the industry.
Rohrsheim also questioned the announcement made by the government on Thursday, which stated compensating current taxi license owners in NSW to make sure they get returns on their devaluing investments.
The changes mean ride-sharing drivers will have to cover more costs associated with licences, training, and undergo more vigorous security checks.
Taxi services around Australia had clashed with ride-sharing services, specifically UberX, calling the service illegal and questioning the safety of ride-sharing.
‘This important step forward is an incredible reflection of the way Sydneysiders have embraced ridesharing over the past 18 months, ‘ he said in a statement.
A new regulator and commissioner will also oversee the industry that has sprung up via apps on smartphones and has left governments struggling to play catch-up to consumer wants. The service has been operating in the country since previous year, and triggered violent protests from taxi drivers.
“But there needs to be compensation at the market value of the plates… which represent, for many drivers, their superannuation”, he said.
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“We will certainly work closely with our colleagues in the ACT taxi industry and will continue to provide good service to the people of Queanbeyan and Canberra”.
