NSW’s state government has agreed to give Uber the green light to operate within the state, and will give minimal compensation to taxi owners in exchange for a loosening of regulations around ride-sharing and private car-hailing apps in the state.
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Given these changes, Transport Minister Andrew Constance expected a reduction in all fares as a result of the changes and said that “it’s time for industry and government to move the same way”.
The decision today finalises deliberations by legislators and ends the on-going stoush between Uber and Taxi services in NSW.
A new regulator and commissioner will oversee the industry in the state, with a driver authority implemented in the transition period.
Taxis will still have exclusive rights to pick passengers up from streets and airports. Legalisation of these services would require ride-sharing drivers would have to pay license fees and ensure they have met all the safety requirements to be able to start operating on the NSW roads.
The state government said it would repeal more than 50 taxi and hire vehicle regulations.
‘All up the reform package equates to $30 million each year in reduced regulatory costs for the industry.
Taxi companies will have the option of passing this on to customers, but the Government said licence fees and other costs would be reduced. Those who only recently bought plates will be assessed on a case-by-case basis, and will potentially be eligible for compensation on a scaled basis.
“If we learn from this and take on the lesson of disruption we can get ahead and improve services to the passenger”, he said.
“This important step forward is an incredible reflection of the way Sydneysiders have embraced ridesharing over the past 18 months”, Rohrsheim said.
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“Ridesharing is not only revolutionising the transportation status quo but also helping make Sydney a more economically vibrant, better connected and more sustainable city”.
