Fears as Uber launches its services in the Latrobe Valley and East Gippsland

Mum and dad taxi companies in Gippsland’s major towns could be run off the road, stakeholders say, as rideshare giant Uber muscles in.

 

Mum and dad taxi companies in Gippsland’s major towns could be run off the road, stakeholders say, as rideshare giant Uber muscles in, raising fears of a drop in safety standards.

Uber recently revealed it was launching its services in seven new locations across the nation, including Wodonga, Mildura, Latrobe, East Gippsland, Whitsundays, Campaspe and Central Highlands.

But Victorian Taxi Association director Peter Valentine said the expansion risked the livelihoods of smaller companies.

“What you’ve got there (in Gippsland) is the little mum and dad or family companies that basically operate off the kitchen table — and they might have one or two taxis in some of those towns,” he said.

“If you start to drain all the work away from them, they can’t afford to keep cars on the road in the middle of the night.”

Uber announced in July that it would be launching its services in seven new locations, which included the Latrobe Valley and East Gippsland regions.

Mr Valentine said it was all “just getting out of hand”.

“We don’t mind the competition — that’s not the problem,” Mr Valentine said.

“We’re seeing a lot of bad practices the state government can’t control.”

Mr Valentine said it was “far too easy” for people to become a taxi or Commercial Passenger Vehicle (CPV) driver.

“And that’s leading to very few standards in regard to safety and safety and/or training of drivers,” he said.

“You’ve got Uber approaching taxi companies and taxi drivers saying, ‘you can drive for us, keeping driving your taxi, but we’ll send you some Uber work’.

“Where’s the priority of the work now? Is it the taxi company or the rideshare company?

“Quite frankly I think what it’s defined as is that you’ve got an oversupply.”

An Uber spokesperson said the launch aimed to boost local tourism and complement existing transport options as the demand for convenient and affordable transport in the region continued to grow.

Traralgon local Jackie Martin said Uber coming to the region would be beneficial.

“It’s not the taxis’ fault, but friends of mine have had to wait up to six hours for a taxi on a weekend,” the 61-year-old said.

“At three or four o’clock in the morning, some of them (the friends) are under the weather and intoxicated — and walking home like that, it’s not safe.

“I don’t have a problem with the Ubers coming in — as long as they’re going to work in conjunction with Latrobe Valley taxis.”

Ms Martin says there were sometimes long waits for taxis on weekends in Traralgon. Picture: Jack Colantuono

Ms Martin said her son, nephews and nieces had been told to call her if they couldn’t get a taxi home.

“That way I know they are all going to make it home safe,” she said.

“Doesn’t matter if it’s 2am or 5am — if they need a lift home and there’s nothing available — I’m more than happy to come and get them.”

Ms Martin said there wasn’t much public transport in the Latrobe Valley, but the bus lines did a “fantastic” job.

“It’s grown so much — I’ve been here more than 50 years and they need something — the taxis need a bit of help,” she said.

“But I don’t want the local taxis to get shunned in any way.”

Community members will be able to use the rideshare up in the region by the end of the month.

A Schnitz franchise will also be opening on Victoria St in Warragul, which will be the second store to open in Gippsland. The first opened in Traralgon in 2014.

The Victorian state government has been contacted for comment.

The content summaries were created with the assistance of AI technology, then edited and approved for publication by an editor.