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Feann Torr27 Aug 2014
NEWS

South Australia bans car-sharing system

App-based Uber ride-sharing program deemed illegal in South Australia; $8000 fines for drivers

South Australia has joined Victoria and New South Wales in condemning Uber, a high-tech rival to traditional taxis and hire cars.

Like the two eastern states, South Australian Uber drivers will be fined if caught taking passengers – in this case up to $8000.

The Uber service comprises Uber Black (premium cars) and UberX (regular car) and works via an app that connects passengers with drivers.

It is understood to be up to one third cheaper than regular taxis, and requires drivers have a vehicle that is no more than 10 years old, with four doors and comprehensive insurance.

Uber drivers must be aged at least 24, but because of a lack of background criminal checks and regular vehicle inspections, South Australian treasurer and acting transport minister Tom Koutsantonis asserts the company is operating illegally.

"It's a very dangerous option to take an Uber service – you don't know who's driving the car," Koutsantonis said on ABC radio on Monday, just days after the service was launched in Adelaide with help from AFL stars Travis Boak and Nathan van Berlo, the captains of Port Adelaide Power and Adelaide Crows respectively.

"You don't know if the car has been checked and, most importantly, we can't know when you got into that car and where you got out of that car or where you were meant to go," stated Koutsantonis.

The SA treasurer said that fines would be issued to drivers found operating under the Uber system of between $3150 and $8000, following the lead of NSW and Victoria.

Uber is available in Brisbane, Perth, Adelaide, Sydney and Geelong, although only Melbourne and Sydney appear to be actively stamping down on drivers.

Around 30 Melbourne drivers have been issued fines of around $1700, totalling $50,000, after a blitz in May, while NSW has issued fines of $2500 to some Uber drivers and also threatened legal action.

However, according to regular Melbourne Uber user, David Jones, drivers don't pay the fines. Uber does.

"I've spoken to four or five drivers about fines. As far as they tell me, Uber, the company, will pay the fine for the driver. They take care of it," said Jones, who has been using the service for two months.

Uber's net worth is estimated to be more than $US18 billion, having become a household name in the USA. The Californian company launched in 2009 and has expanded globally with smartphone-based taxi services spanning the Americas, Asia Pacific, Africa, the Middle East and Europe.

Jones told motoring.com.au that he was happy with the service Uber provides and that the drivers he spoke to weren't overly worried about getting fined by state governments.

"A couple of drivers did feel worried about it, but I think that the idea that Uber will pay is comforting or reassuring for them. They felt safe to continue driving."

As state governments continue to look at ways to regulate new entrants to the taxi industry that make use of mobile technology (the NSW Roads and Maritime Services is currently investigating Uber), customers like Jones are more than satisfied with the service, saying they are more reliable, cleaner and cheaper than regular taxis.

"I don't think I could go back to using [regular] taxis now. I'm used to Uber -- it feels more reliable. I wouldn't use a regular taxi unless I really had to," he stated.

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