Fare’s fair as passengers win in Uber shake-up at Sydney International

The contention by NSW Taxi Council chief executive Nick Abrahim that having to share kerbside pick-ups at Sydney International Airport with the ride-share company Uber would see his drivers lose $5 million a year in revenue hardly evokes much sympathy from the travelling public.

The queue for Ubers at Sydney airport’s international terminal.Credit: Nick Moir

For many passengers, Sydney’s cabs have not only been on the nose for years, but nearly everybody has heard stories of – or experienced – abusive drivers and fare gouging, and had little recourse to complain about third-rate service.

The cab industry has been caught flat-footed by the loss of market share, and drivers fought an unsuccessful rearguard action to save their airport rank monopoly by going on strike last week and refusing to pick up any passengers from the international terminal in protest against the NSW government’s plan for a new Uber pick-up zone. The new airport rank resulted from complaints from nearby residents this year about the behaviour of Uber drivers parked in streets awaiting passengers.

The change appears to have been embraced by the public. A 12-month trial started on Tuesday and within three days, the Herald observed that 70 per cent of passengers were using the new kerbside pickup zone at Sydney’s T1 international terminal.

Uber’s continuing rise is astounding as cabs once ruled Sydney. Drivers at Sydney Airport were abusive if fares were too small and their vehicles often stank, but the shoddy service facilitated such lucrative returns that cab licences were a sought-after investment and changed hands for more than $400,000. The industry was ruled by Reg Kermode, the so-called “Cabs King” who founded Cabcharge, and had deep bureaucratic contacts and a former NSW premier as a business associate.

Kermode died in April 2014 when Uber had been lurking for two years. A decade later, the taxi industry has learnt little: cab drivers still routinely refuse to accept passengers at the airport if jobs are too small, some vehicles still reek and the NSW taxpayer had to compensate taxi plate owners with $905 million after the value of their investment plummeted in the face of gig economy competition from ride-share apps.

Abrahim estimated the airport trial would reduce fare revenue by 20 per cent over the next year, costing drivers $5 million, which could balloon if the trial was extended. He also accused the state government of making a “mockery” of transport regulations by granting Uber an exemption, saying they “don’t need to change the rules to encourage competition”.

That said, the shine has gone off Uber too. Shrinking remuneration for drivers, problems with passenger credit payments and allegations of fare gouging suggest Uber is travelling down the same road as its taxi competitors.

Cab drivers lament losing a piece of their action to Uber rivals, but a similar scheme has operated at Melbourne’s Tullamarine Airport for years. The truth is the airport rank changes are welcome because they offer passengers more choice.

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