Uber urges state government to legalise drivers

Illegal ride-sharing company Uber is calling on the state government to license its drivers and allow them to lawfully operate on Victoria's roads alongside taxis.

In a submission that will be sent to Victorian MPs and Transport Minister Jacinta Allan on Thursday, the rogue operator wants ride-sharing included in current laws regulating the taxi and hire car industry before broader legislation is written up.

UberX, which lets people book rides with approved drivers using a smartphone app, has drawn the ire of the taxi industry for operating outside the regulatory regime and cutting into its customer base.

The company wants a short-term fix from the state government and is asking the Transport Minister to include UberX drivers' vehicles in legislation as a new subclass of "special purpose vehicle", a provision which covers wedding and tour cars.

"There is a way for the government to create a framework for regulating ride-sharing and they could do so immediately," Uber head of policy Brad Kitschke said.

Once regulated, Uber would then push for the state government to draw up a full legal framework for ride-sharing, providing oversight on drivers and companies in the growing industry.

Ride-sharing has been highly successful around the world. More than 4500 people are signed up to drive for Uber in Victoria and the company recently began advertising for drivers in Bendigo. However, by doing so they operate in a legal grey area.

The company is locked in a court battle, fighting an undercover sting by the Taxi Services Commission, which charged 11 people for allegedly driving a commercial passenger vehicle without a licence. They face fines of up to $7500.

​Mr Kitschke said Uber was heavily self-regulated and drivers met the same standards as taxi drivers.

He said the company did not want to cut into the taxi market and be allowed to gather at ranks or be hailed in the street.

"The taxi lobby makes all sorts of claims; ride-sharing is a supplement that grows the total transport market," he said.

However, Uber may have a fight on its hands over fees.

In its policy document, the company said it was content to pay the government an administrative fee for each licence.

Licence fees for taxi drivers are set at $22,000 a year. Hire cars, which are part of the legislation section targeted by Uber, attract a $40,000 one-off fee.

Uber does not charge drivers a start-up fee, instead taking a 20 per cent cut of every ride.

Miriam, who asked that her surname not be used because of Uber's legal issues, has been a driver since October.

She said she enjoyed the flexibility Uber offered.

The Brunswick woman said she had completed nearly 2400 rides since signing with Uber.

Any attempt to levy a licence fee could force her to stop.

"I'm not going to pay thousands and thousands of dollars," she said. "I think it's just another step to get rid of as many drivers as possible."

​Mr Kitschke said any fee imposed by the government should not increase the cost to be a driver.

He said it would be "absolutely ridiculous" if the taxi and hire car licence fees were applied to Uber drivers.

He said drivers were already paying fees for criminal checks and other costs to qualify as an Uber driver.

"The main focus of any fees should be around consumer safety and protection," he said. "It needs to be appropriate, because a lot of drivers don't do this as a full-time job."