NSW government puts Uber on notice

Roads and Maritime Services director Peter Wells said the step was taken to sanction those who permit the use of such vehicles in an illegal system of passenger transport.

If a suspended vehicle is found on the road after October 1, the vehicle will be deemed to be unregistered and uninsured, with penalties of $637 for each offence, increasing to about $2200 if heard in court, Mr Wells said. It is also unclear why RMS has only just started cracking down on this issue if ridesharing services like UberX have always been illegal by Australian law.

The NSW Taxi Council has acknowledged the RMS action to suspend the licences of UberX drivers, although it claims it is not directly involved in any legal or industrial action on this specific matter – “however it reserves its position in this regard”. Earlier this year in California, the Department of Motor Vehicles similarly decided that Uber drivers would be required to have commercial plates for their vehicles, but backedtracked on the ruling not long after it was enacted.

Roads and Maritime has previously taken 24 UberX drivers to court over Taxi Act breaches, but was later forced to drop the charges due to “evidentiary issues” in the end of July.

Thousands of dollars in fines have already been issued to illegal ride sharing Uber drivers with vehicle suspensions taking effect from September 30 and will be in place for three months. “Our services are in direct competition and both provide the same thing – point-to-point passenger services”.

The NSW government has set up an independent task force to examine the future sustainability of taxis, hire cars and other transport services in the state. This only makes the timing of RMS’ crackdown even more baffling.

Uber said it was waiting for the NSW government to regulate the industry sensibly.

The taskforce is expected to report back to the Government in October.

An Uber spokesperson told Mashable Australia the company is reviewing its legal options to reverse the decision by the RMS.