Canberra becomes the world's first capital city to legalise Uber and ride-sharing

  • Ride-sharing drivers will have to be registered and accredited
  • Drivers will need property and compulsory third-party insurance
  • Only regular cab drivers will be allowed to pick up from taxi ranks
  • Surge pricing will be banned during emergencies under the reforms
  • Victoria and NSW are also considering moves to legalise ride-sharing 

By Aap and Nicole Low For Daily Mail Australia

Published: 18:52 EST, 29 September 2015 | Updated: 09:59 EST, 22 November 2015

Canberra has become the world's first capital city to legalise Uber and other ride-sharing services.

Under the new laws - to be announced by Chief Minister Andrew Barr and Greens Minister Shane Rattenbury on Wednesday - the ACT will regulate ride-sharing networks such as Uber and goCatch, The Age reported.

The changes will come into effect late next month.

Scroll down for video

Uber and other ride-sharing services will be legal on NSW roads next month (stock image)

Uber and other ride-sharing services will be legal on ACT roads from October 30 (stock image) 

Uber drivers will be forced to pay licence fees and undergo stricter background checks under the new reforms 

Passengers will have to use an app to book a ride-sharing vehicle. Only regular cab drivers will be permitted to pick up passengers on the roadside or taxi ranks (stock image)

‘Canberra will be the first capital in the world to enable ride-sharing to operate legally ahead of ride-sharing businesses operating,' the ACT government said.

'As a result, Uber and other ride-sharing businesses will be able to legally enter the Canberra market from 30 October 2015.'

Regulation will be introduced in two stages.

The first, to start from October 30, will require drivers to be registered and accredited, and to undergo criminal checks.

All drivers must also have health checks every five years, be drug-free and have a zero blood alcohol level.

Booking services will have customer complaint mechanisms and surge pricing will be banned during emergencies.

Drivers will be required to pay a $600 application fee and a $50 accreditation fee, with licence fees fixed at $100 annually or $400 for five years.

Taxi owners will be compensated for losing full control of the market under the reforms set to be introduced next month 

Most payments on Uber and other ride-sharing cars will be made via credit card (stock image)

It comes after Canberra became the world's first capital city to legalise Uber and other ride-sharing services n October

Booking services will have customer complaint mechanisms (stock image)

Under the second stage, ride-sharing drivers would also need property insurance and compulsory third-party insurance for their vehicles.

Most payments will be made via credit card, and ride-sharing drivers who accept cash must have a camera installed in their vehicles.

‘These reforms are a win for Canberrans and those travelling to the Territory, improving access to diverse transport options and competitive pricing,’ Mr Rattenbury said in a statement.

The arrival of legalised ride-sharing will see several concessions to the taxi industry.

Only regular cab drivers will be permitted to pick up passengers on the roadside or taxi ranks.

However, ride-sharing cars will be allowed to drop off passengers at Canberra Airport. They will also be allowed to pick up passengers from the airport, The Australian reported.

 Registration costs for entering the taxi industry – currently $320,000 – will be cut significantly across NSW

Uber has welcomed the reforms, saying it 'opens up choice and opportunity for all Australians' (stock image)

Taxi licence fees will fall from $20,000 to $10,000, and be reduced further to $5,000 within a year.

Hire cars license fees will also drop, from $4,600 to $100 a year.

‘We’re thrilled that the ACT government announced today that it is embracing ridesharing and welcoming uberX to the capital,’ Uber said in a statement.

‘Canberra will become the first capital city in the world to introduce specific ridesharing regulations before Uber’s entry into the market, leading the way for other state and territory governments to follow suit and open up choice and opportunity for all Australians.’

Unions warned they would closely scrutinise the new regulations to make sure rights of drivers - both for Uber and taxi networks - are not eroded.

Uber and taxi drivers are at significant risk of exploitation, often earning below minimum wages, Unions ACT secretary Alex White said.

News of the reforms come a day after Victoria’s government indicated it would legalise ride-sharing.

‘I'm concerned to make sure that we properly regulate the pre-booked only trade,’ Victorian Premier Daniel Andrews said, according to the Australian Financial Review .

A report by the Victorian Taxi Association said the industry injects $200 million a year into state and federal coffers.

It employs 17,000 Victorians and helps to keep the state's elderly, disabled and veterans mobile as they take 2.6 million taxi rides a year.

NSW - where transport authorities this week suspended the licenses of 40 drivers allegedly using their vehicles as ride-sharing cars - is also looking at introducing similar rules.

An independent task force has been established in NSW to assess the future of the state's point-to-point transport industry, which includes taxis, hire cars and ride-sharing.

The review will report its findings to the government in October.

 

Comments (7)

Share what you think

The comments below have been moderated in advance.

The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.

We are no longer accepting comments on this article.

Who is this week's top commenter? Find out now