Uber in Melbourne: Compensation for taxis to be set at different levels

A PLAN by the Andrews Government to buy back taxi licences could see different levels of compensation offered based on hardship or other factors.

A PLAN by the Andrews Government to buy back taxi licences could see different levels of compensation offered based on hardship or other factors.

The Herald Sun revealed yesterday that the government is set to legalise ride-share service Uber, allow taxis to set their own fares, and create a $1 levy per trip to go into a “fairness fund”.

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Public Transport Minister Jacinta Allan. Picture: Christopher Chan.

A Cabinet meeting this week saw ministers discuss compensating existing licence owners by buying back licences at market rates — currently about $150,000.

However, it is understood this may not be a blanket scheme — which could cost as much as $800 million — and factors such as how long plate owners have held their asset or how many licences are held by the one owner could be taken into account.

The taxi industry cautiously welcomed the plan to open the market and allow operators to set their own fares, saying more competition should lead to a better ride for passengers.

But opposition public transport spokesman David Hodgett warned “anything that makes transport more expensive for Victorians is not a good outcome”.

“Victorians are struggling with cost of living pressures so if the government’s proposal means higher fares for passengers then that may be a backward step,” he said.

Public Transport Minister Jacinta Allan said there would be protections for people with disabilities, once the plan was finalised.

And she said there would also be careful consideration of how deregulation could affect regional areas.

Uber spokesman Caspar Nixon said the company wanted more detail about the scheme.

“In developing a regulatory framework for ridesharing, it’s critical the Government understands the importance of sensible regulations that enable local residents to access much needed economic opportunities, while delivering the safety outcomes consumers want and expect,” he said.

 

Victorian Taxi Association chief executive David Samuel said the “bold” plan appeared to strike a good balance but “we need to know the detail on the levels or structure of compensation”.

“We realise that the government needs to find a way to pay for this. With a levy it really comes back to the implementation and how it’s collected,” he said.

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