By Patrick Hatch
Drivers using a smartphone app to operate unlicensed taxi services around Victoria say they will not be deterred by a recent crackdown by the state's taxi regulator.
Twelve UberX drivers appeared in the Melbourne Magistrates Court on Thursday charged with operating a commercial vehicle without a licence, following a sting by the Victorian Taxi Services Commission.
Taxi wars: The Victorian Tax Services Commission believes the Uber service undercuts licensed drivers.Credit: Angela Wylie
The drivers each face fines of up to $7500, after allegedly being caught driving between May and August this year in Geelong, Southbank and in Melbourne's central business district.
Uber, which connects people looking for lifts with drivers, was launched in the United States in 2010 and is now used in more than 200 cities in 45 countries around the world.
In Melbourne, users can request an UberBLACK, which are hire cars operated by licensed taxi drivers, or the low-cost UberX, driven mostly by unlicensed drivers who use their own cars.
UberX has been available in Australia since April and "thousands" of drivers are using the service in Victoria, a company spokeswoman said.
The taxi regulator has long opposed Uber, which it says undercuts taxi drivers who pay for expensive licences, and has fined 80 UberX drivers in recent months.
But Melbourne UberX driver Arron Iris said the crackdown would not deter him or other drivers from using the app, in part because the company pays any fine they receive.
"I'm not scared. Why should I be?" Mr Iris said.
"There were two drivers who were fined three months ago and I think Uber paid for it and I think it's still the case."
Mr Iris is rare in the UberX world in that he does hold a taxi licence, after he started driving conventional taxis about eight years ago.
He does, however, drive his own car, which is not registered with the taxi commission.
The 45-year-old started using UberX three months ago and said he would not go back.
"I'd rather stay with Uber, because you can communicate with the passengers - everything is working, the system is perfect," he said.
Another Melbourne UberX driver, Robert Burns, was also confident the company would pick up the tab if he was fined.
"I think I'll keep on driving - a lot of people want to use Uber," Mr Burns, who started driving an UberX 12 weeks ago, said.
"My understanding is that if a driver is a fined, Uber picks up the fine."
The 52-year-old former mechanical engineer turned to driving when he was unable to find other work, and said the high demand for UberX would ensure its survival.
"Uber will stand behind us and how can you defeat something the customer wants?"
A statement by Uber said that it was inappropriate to comment on the case against its drivers, which will return to court on February 5. The statement said the company "stands by its partners fully".