Right: Professor Allan Fels, a former head of the Australian Consumer and Competition Commission, conducted an inquiry into the Melbourne taxi industry. One of his conclusions was that the Victorian economy and the public would benefit by allowing Uber to operate.
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Background information
(The information printed below is an abbreviated version of that found in two Wikipedia entries. The information can be accessed at https://en.wikipedia.org/wiki/Uber_%28company%29 andhttps://en.wikipedia.org/wiki/Legal_status_of_Uber's_service#cite_note-lawsuits-1)
Uber Technologies Inc. (stylised as U B E R) is an American international transportation network company headquartered in San Francisco, California. The company develops markets and operates the Uber mobile app, which allows consumers with smart phones to submit a trip request which is then routed to Uber drivers who use their own cars. As of May 28, 2015, the service was available in 58 countries and 300 cities worldwide. Since Uber's launch, several other companies have copied its business model, a trend that has come to be referred to as 'Uberification'.
Uber was founded as 'UberCab' by Travis Kalanick and Garrett Camp in 2009 and the app was released the following June. Beginning in 2012, Uber expanded internationally. In 2014, it experimented with carpooling features and made other updates. Klout ranked the San Francisco-based company as the 48th most powerful company in America in 2014. By late-2015, Uber was estimated to be worth $US62.5 billion
The legality of Uber has been challenged by governments and taxi companies, who allege that its use of drivers who are not licensed to drive taxicabs is unsafe and illegal
Uber and the law
Uber is involved in at least 173 lawsuits. As of mid-2015, protests had been staged in Germany, Spain, France, and England, among other nations, and dangerous incidents involving passengers have been documented. Uber executives were arrested in France in June 2015. In December 2014, Uber was banned in Spain and in two cities in India. Uber continues to be involved in disputes with several governmental bodies, including local governments in the United States and Australia.
Governments have been largely unable to stop Uber's operations in their jurisdictions because its operations are conducted primarily over the Internet. In addition, Uber is said to use extremely aggressive tactics such as bullying and hiring investigators to 'dig up dirt' on journalists who criticize them. Portland, Oregon's transportation commissioner called Uber management 'a bunch of thugs'. A commissioner in Virginia who opposed Uber was flooded with emails and calls after Uber distributed his contact information to all of its users in the state.
Australia
In May 2015, the Australian Taxation Office issued a directive stating that drivers that generate income through ride-share are considered a business and advised those providing a ride-sharing service that they need to have an Australian Business Number and be registered for GST. Uber was quick to respond to ATO's directive and lodged documents to the Federal Court arguing that the public issue by the ATO 'unfairly targets Uber's driver-partners'.
Australian Capital Territory
Uber secured an agreement with the government of the ACT, and commenced UberX ride-sharing on 30 October 2015 as stage one of a planned legal integration of ride-sharing with the existing taxi industry. Stage two will involve legislation introduced on 29 October and being debated and passed early in 2016. As the government holds a majority in the unicameral Legislative Assembly, this should proceed smoothly. UberX drivers must pass criminal record and driver history checks and their vehicles are checked to be registered, insured and roadworthy. In stage two, drivers will be subject to regular health checks and must pay additional licensing fees.
New South Wales
On April 30, 2014, Transport for New South Wales, the government authority regarding transportation in New South Wales, Australia, responded to the introduction of ridesharing function of Uber and clarified that "if a NSW driver is taking paying members of the public as passengers, the driver and the vehicle must operate in accordance with the Passenger Transport Act" and "Under the act, such services must be provided in a licensed taxi or hire car, by an appropriately accredited driver, authorised by Roads and Maritime Services (RMS)." In December 2014, the New South Wales government confirmed that they had conducted an unannounced search of the company's Sydney offices in April of that year for law enforcement purposes.
The New South Wales government created a taskforce to look into Uber problem stating that the existing regulatory framework is 'difficult to enforce', and therefore not as effective as it could be. The taskforce also noted that ride sharing services 'appear to meet the criteria of a public passenger service' under the 1990 Act. This is despite the fact Uber has reaffirmed that it is not a taxi service and should not have to operate under taxi regulation. On 17 December 2015, Uber was legalised in NSW with compensation for taxi plate owners
Western Australia
On December 18, 2015, the Western Australian Transport Minister Dean Nalder revealed sweeping regulatory changes to ridesharing services in the state. The reform will require ridesharing services to apply for an omnibus licence, similar to limousines and small charter vehicles. The announcement made clear that taxis would remain the only player in the rank and hail space. Mr. Nalder also insisted on security cameras for all taxis but not "omnibuses", believing these should remain optional. Uber Perth City Lead Tom White said he was delighted the government was "welcoming ridesharing" and providing certainty for its drivers. 'This forward-thinking decision will open up economic opportunity and choice to the people of WA,' he said. Taxi Industry Forum WA chairman Howard Lance said the changes were long overdue and would provide certainty but Uber compliance was paramount.
Northern Territory
As of January 2016, there is no regulation as of yet into the ride-sharing Uber company.
Queensland
Queensland premier Campbell Newman said, 'We are a deregulation-minded government' at the end of May 2014, in regard to the Queensland government's unwillingness to regulate Uber. The government sent a cease and desist letter to the company during the same month. Transport Minister Scott Emerson subsequently said that he 'welcomed innovation in transport technologies', but Uber 'must meet the relevant transport legislation'. The Taxi Council Queensland (TCQ) supported the state government's stance, while Jordan Condo, Uber's head of public policy for the Asia Pacific region, described the state's regulations as 'outdated'.
By mid-November 2014, the TCQ announced an anti-Uber media campaign, in which it warns Uber passengers that they are putting their lives at risk. In regard to the campaign's slogan, 'Don't risk your life-Rideshare apps are unlawful, unsafe and uninsured,' TCQ chief executive Benjamin Wash said in a public statement: 'Queensland taxi drivers undergo daily criminal checks, but rideshare drivers don't. You simply don't know who is behind the wheel.' Uber responded with information about its insurance policy, including a $US5 million contingency liability insurance cover and 'each partner driver's own full insurance policies'. The TCQ also launched an online parliamentary petition to ensure that Uber remains illegal in Queensland, while Emerson said that, since August, the government had issued 'more than [A]$170,000 in fines to 62 [Uber] drivers'.
South Australia
As of January 2016, there is no regulation as of yet into the ride-sharing Uber company.
Tasmania
As of January 2016, there is no regulation as of yet into the ride-sharing Uber company.
Victoria
On May 6, 2014, the Taxi Service Commission in Victoria, Australia, issued a number of infringement notices to Uber drivers with a fine of A$1,723, after a public warning discouraging people to use ridesharing applications like UberX. State officers said that they will review the state's Transport Act, while Uber said it will reimburse drivers.
On the 4th of December, 2015, an Uber driver was found guilty of driving a hire car without license or registration; this case is the first of twelve brought against Uber drivers by the Victorian Taxi Services Commission.