Transport Minister Stephen Mullighan warns that Uber rides could be illegal

RIDE-sharing service Uber has been accused of breaking the law by offering cheap promotional trips in Adelaide.

08/09/15 News limited reporterJosephine Lim is testing out an Uber ride . Pictured with the Uber car, driver didn't want him or his vehicle identified. Picture Roy VanDerVegt

RIDE-sharing service Uber has been accused of breaking the law by offering cheap promotional trips in Adelaide.

Transport Minister Stephen Mullighan said the State Government had received advice UberX was in breach of the Passenger Transport Act and its regulations by charging $4.99 a ride.

But an Uber spokeswoman said the company was not in breach of the act or regulations and believed its fun rides promotion was compliant.

The rides around Adelaide have been on offer since Tuesday, but it is not known how long the promotion will run.

Mr Mullighan said Transport Department officers had been conducting compliance checks to identify any breaches of the Act, including whether drivers could be subject to penalties.

“The department now has evidence some Uber drivers do not have appropriate accreditation (which is required under the Act),” Mr Mullighan said.

Under SA’s passenger transport regulations, a service consisting of a ride for fun or amusement that is less than $5 is not considered a “passenger transport service”.

UberX uses a mobile phone application to connect people with nearby drivers.

It operates in Sydney, Brisbane, Melbourne and Perth but current regulations mean the service cannot operate in South Australia.

An Uber spokeswoman said the first it had heard of Mr Mullighan’s objection was through the media.

The SA Taxi Council has also lashed out at Uber, saying the $4.99 rides around Adelaide were illegal and the UberX-style service was making a “mockery of the law”.

The State Government has established a review to look at the future of the taxi and chauffeured vehicle industry.