Uber becomes legal in second Aussie jurisdiction

Uber is officially legal in NSW, with the Baird government agreeing to regulate the ride-sharing service in cabinet.

The ruling will also see taxi plate owners compensated for the sudden devaluing of their investments, with around 5,800 plate owners now eligible for payouts of 20,000.

As for the newly appointed players, all Uber drivers in NSW will now have to pay a separate licensing fee, have criminal background checks and have their cars go through regular safety checks. Uber drivers will also not be allowed to pick up passengers from Sydney Airport, and taxis will continue to have exclusive rights to pick up hailing passengers from the street and from taxi ranks.

The changes, which are expected to generate $30 million in benefits for the industry each year, should have flow-on effects for customers, Transport Minister Andrew Constance said.

In doing so, cabinet also repealed fifty regulations covering taxi and hire auto services with immediate effect.

The legal changes come with AU$250 million in compensation for the taxi council, which the NSW government is terming a “industry adjustment assistance package”.

“By taking regulatory and cost pressure off the industry and unlocking more point-to-point services, we expect to create hundreds of new jobs over the next few years”, Mr Constance said.

“This important step forward is an incredible reflection of the way Sydneysiders have embraced ridesharing over the past 18 months”.

There are concerns that these licence fees will discourage drivers from operating, as well as driving up the cost of ride-sharing services for passengers – the comparatively low cost of UberX is a big part of its appeal.

The decision today finalises deliberations by legislators and ends the on-going stoush between Uber and Taxi services in NSW.

David Rohrsheim, general manager of Uber Australia and New Zealand, said in an emailed statement he was pleased with the move toward a new system.