Uber driver numbers reveal impact on taxi industry

IT WAS meant to spell the end of the taxi industry, but Uber’s arrival has had a counterintuitive effect for some cab drivers.

IT was supposed to spell the end of the taxi industry, but the arrival of ride-sharing company Uber hasn’t harmed its competition.

Uber says it has hired 15,000 drivers since its launch in April last year, and is hoping to have 20,000 drivers by the end of the year.

But this extra competition hasn’t hurt the taxi industry overall, with some drivers actually increasing the numbers of passengers they take.

The Australian Taxi Industry Association (ATIA) says the number of Australian taxi drivers hasn’t changed over the past 12 months, remaining at 68,000.

Uber is on track to become one of the biggest employers in Australia.

While Uber’s impact hasn’t been massive overall, ATIA CEO Blair Davies told news.com.au some drivers were noticing the competition more than others.

“On a national basis we haven’t seen a great shift in demand, and actually our number of rides have increased significantly overall, but when you look at it on a per shift basis in some cities rather than others it’s been more significant,” he said.

“The Uber business is targeting that Friday, Saturday night business, and drivers that might only work that shift, particularly in Sydney and also Melbourne, have seen significant competition and significant hardship as a result.”

Uber is talking up the impact the service has had on poor suburbs, saying more than 45 per cent of the jobs it has created have come from the suburbs with high rates of unemployment.

The company said almost one in 10 of its drivers were military veterans, while 12 per cent are aged over 55.

“The vast majority of uberX driver-partners have never been professional taxi drivers,” Uber’s Australian general manager David Rohrsheim said.

“Although the taxi drivers who have made the switch to uberX consistently tell us they prefer driving on our platform because of the ability to set their own hours and know they are taking home 80% of every fare.”

The taxi industry is worried about how Uber will be able to operate in the future. Picture: Mary Altaffer

The controversial ride sharing app is continuing its push to win over hostile governments challenging the legality of its service.

Uber is pushing governments to change legislation to include ride-sharing, which is currently illegal.

But the company has so far faced resistance from state governments and drivers have often been hit with fines.

It’s also fighting with the tax office in the Federal Court over a decision to force drivers to pay GST on every dollar they earn.

Mr Davies said if Uber was allowed to continue operating as it is, its presence will be felt by the taxi industry.

“Our concern is not so much what Uber is doing in terms of eating into demand today,” he said.

“We know if they are allowed to continue to operate and have the ability to price their product significantly cheaper than taxis, it means they will win over demand.”

- With AAP