Hurt by Uber, taxi licence holders unite in push for compensation from Tasmanian government

Having purchased licences for as much as $120,000, taxi operators are seeking a settlement with the state government after the value of their plates plummeted as a result of Uber’s arrival.

Tasmanian taxi licence holders are seeking compensation from the state government. Picture Nikki Davis-Jones

Taxi drivers and licence holders left financially disadvantaged after Uber’s entry into the market are ramping up their campaign for a Tasmanian plate buyback scheme that would likely cost the state tens of millions of dollars.

At least 80 taxi plate holders are expected to attend a meeting in Hobart on Tuesday, where they will discuss plans to intensify their push for compensation. A Department of State Growth representative will be in attendance, as will Liberal MP Madeleine Ogilvie in her capacity as the member for Clark, the Mercury understands.

Community advocates and barristers Mala Crew and Fabiano Cangelosi are representing licence-holders on a pro bono basis.

The government, however, says it has “no plans” to establish a buyback scheme, citing existing support and subsidies for the taxi industry.

Taxi buyback schemes have been implemented in New South Wales, Victoria, Western Australia and the Northern Territory, where levies have been placed on taxi and Uber trips to fund compensation programs. No such legislation exists in Tasmania.

Taxi licence owners Devi Sharma and Tony Bell with community advocate and barrister Mala Crew in Hobart. Picture: Chris Kidd

Devi Sharma, who owns 10 taxi plates, is urging the Rockliff government to introduce a levy to raise the funds needed for a local buyback scheme.

“In the last two years, whatever money was in my bank, nothing is there [now]. I’m struggling very hard,” he said.

“I’m asking for money from my children now … My mortgage is going up when interest rates are high. All things are coming together on my head.”

Mr Sharma said he bought his first taxi plate in 2009 and “initially, everything was going well”. But when Uber came to Tasmania, Mr Sharma said his business was “significantly impacted”

The Tasmanian Transport Commission releases new owner-operator taxi licences annually by tender. New licences will be made available after October 1 this year following a four-year moratorium.

There are currently 428 perpetual taxi licences in Tasmania, 107 owner-operator licences, and 57 wheelchair accessible taxi licences, with some people having paid up to $120,000 for their plates.

Local taxi plate holders have been emboldened by Uber’s agreement to pay taxi drivers, operators, and licence-holders $272m to compensate them for lost income and licence values as a result of their move into the Australian market, in what amounted to the fifth-biggest class action settlement in the country’s history.

Community advocate and barrister Mala Crew. Picture: Kenji Sato

Ms Crew said the state government had a “duty of care” to taxi plate holders and were obligated to provide them with compensation

“Their costs are a lot higher than those of Uber drivers,” she said.

“Our aim is to negotiate with the Tasmanian government so that they can pay the plate holders out.

“They’re a beleaguered community already and we just want to help.”

Transport Minister Eric Abetz said “comprehensive” reforms had already been implemented to improve competition and create a level playing field for taxi drivers and ride-share providers.

“We also continue to support the taxi industry via a range of measures which, in their totality, represent significant investment in the ongoing viability of the taxi industry. This includes exclusive access to rank and hail work and the Taxi Subsidy Program which contributed over $5m to the industry in 2023,” he said.

“There are no plans to establish a taxpayer-funded compensation scheme in response to changing market demand for licences or the entry of ride-source platforms in Tasmania.”