DRIVERS taking part in a controversial ride-sharing service are being hit with fines of more than $1700 in a government crackdown. The Taxi Services Commission claims Uber, a popular mobile phone app, is flouting the law by putting unqualified drivers on the road.
Commissioner Graeme Samuel said about 50 motorists hired by Uber to taxi strangers around Melbourne had already been stung by inspectors posing as passengers.
“Our principle is going to be that we’ll impose on-the-spot fines to drivers for a limited amount of time and then we’ll go to court and prosecute,” Mr Samuel said.
Customers are able to book a ride through the app and the journey is then charged to their bank account at a rate cheaper than a conventional cab fare. There has been strong demand for the service during its ongoing Melbourne trial.
Mr Samuel said anyone driving a passenger vehicle for profit was subject to driver accreditation and a $40,000 license fee. He clarified that drivers of the app’s chauffeur car Uber Black service already met this requirement. But said private drivers found to be without a taxi or hire car license had been hit with $1732 fines. “We’re now commencing a second round as part of the compliance process where the focus will be on both licensing vehicles and checking driver accreditation. It could end up costing drivers double,” Mr Samuel said.
He said repeat offenders would be prosecuted and face penalties of up to $16,000 – $8000 for each offence.
Mr Samuel said he would be meeting with Uber next week, but the company had so far given the Government the “single-finger salute” by refusing to negotiate with authorities.
“With some luck a bit of commonsense might prevail,” he said.
Mr Samuel added Uber was putting the safety of drivers and passengers at risk by self-regulating.
“As sure as night follows day, something will go wrong. There’ll be an accident, a bad accident or there’ll be a driver that engages in misconduct,” Mr Samuel said.
But Uber’s Melbourne General Manager, Simon Rossi, said the company ensured every driver went through criminal checks, that their vehicles were insured and roadworthy and that their knowledge of Melbourne roads was sound. He also said both drivers and passengers were subject to a user-rating system.
“Safety is absolutely paramount for us. “We also check phone and credit card accounts to verify the person driving the car,” Mr Rossi said. He also said Uber had tried multiple times to meet with the Commission, but without success.
Victorian Taxi Association spokeswoman Georgia Nicholls said the industry encouraged competition and denied claims it was operating as a cartel to force out ride-sharing. “Regulation is always about preventing the worst-case scenario,” she said.
A Victoria Police spokeswoman said there had been no issues with the service.
Source: HeraldSun