Melbourne Uber Drivers Slapped With $1700 Fines; Service Shuts Down
beaverdownunder (1822050) writes "Victoria Australia's Taxi Directorate has begun a crackdown on Melbourne Uber drivers, fining them $1700 each for operating a taxi service illegally, with total fines apparently equalling over $50000. In response, Uber has shut down its Melbourne service, and has refused to comment on whether its drivers will be compensated, since Uber told them they were providing a legal service. (Fined Uber drivers could take the company to the state's consumer tribunal: stay tuned!) Uber is set to meet with the Directorate next week but it is likely the demands the Directorate will place on Uber drivers, such as mandatory criminal record checks, vehicle inspections and insurance, will make the service in Melbourne unviable. Meanwhile, the New South Wales government is awaiting a report to determine if Uber drivers operating in that state are doing so illegally, warning that drivers could face substantial fines if they are found to have been operating in breach of the law. In South Australia, it doesn't even appear Uber will get off the ground — the state has made it clear that those who operate as an Uber driver will be driving without being covered by the state's mandatory insurance coverage, essentially de-registering their vehicle and making them liable for fines and license suspension."
Those aren't unreasonable demands of someone wanting to carry passengers for hire. They are checks that pretty much the entire Western world has come up with after numerous problems with unsafe, uninsured and unsavoury taxi drivers. If this is enough to make Uber unviable, then I wouldn't want to be one of their investors.
Criminal checks, insurance, vehicle checks .. what is the world coming to when you can't just get in some random fscked up car with an uninsured criminal ?
this would be a good distributed autonomous corporation
Step 1:
Get rid of all regulation.
Free market, yo.
Step 2:
A young girl is murdered and rape in a cab in a horrific fashion.
The democracy demands solutions!
Step 3:
Regulate. When that doesn't work, regulate some more.
Step 4:
Prices are high and a de facto exclusive license exists. People notice this is bad and want deregulation.
Futurist Traditionalism
I wonder if the directorate gave the drivers enough of a heads up before the crackdown; if not, that would seem a rather harsh move.
Deal with reality - the world as it is - rather than ideality - the world as you would like it to be.
We don't need no regulation
We don't need no quality control
No background checks in the taxis
Melbourne leave those cars alone
Hey, Melbourne, leave those cars alone!
All in all it's just another car on the road
All in all you're just another car on the road
You do not have a moral or legal right to do absolutely anything you want.
They will be hanged at sundown. Get your tickets while they last.
Their video game ratings system is constantly banning awesome games. Now they're missing out on a great car service. I love Uber.
>such as mandatory criminal record checks, vehicle inspections and insurance
Allow drivers to send those in via taking pictures of them with their phones. Have the drivers maybe pay a small fee to get some kind of background check on their driving records which the DMV should have anyway (instead of a criminal background check, which does't seem relevant). Problem solved.
Big apple, new Yorik, undig it, something's unrotting in Edenmark.
Once again, big business and government combine to profit at the expense of individuals.
Nobody asked me if I wanted to pay for all the red tape surrounding taxi services. If I want to take an informed risk, I should be allowed to have that opportunity.
The idea is quite simple that they produce something similar to a taxi service at lower cost. The lower cost must come from somewhere. It mostly comes from taxi drivers having to pay extra money for driving people around in taxis, and these guys don't want to pay that extra money. For example, my (British) car insurance says that I'm not insured if I drive people around for money. If I do without getting different (more expensive) insurance, then I'm driving without insurance, which could bankrupt me and the passengers in case of an accident, and would get me into all kinds of trouble if caught.
Uber seems like a libertarian scam at best. You have an unlicensed, unregulated cab service with unverified and wildly variant service levels. Compounding the issue further, youre faced with an entity that assumes the 'fare' it pays you is commensurate enough to ensure your maintenance, upkeep, and fuel costs. While it might be true for a 13 year old crown victoria, Im willing to guess the fare earned for a jaunt across town in some strangers Benz doesnt begin to cover ceramic brakes and ferromagnetic suspension work.
There is literally nothing in the contract agreements for Uber or even at the government regulatory level that would prevent what essentially amounts to 4chan on wheels from picking you up, driving you to the middle of nowhere, and kicking you out covered in mustard without saying a word. If you lost your phone or wallet in the car, no ones beholden to return it. The automobile provided might even be some dukes of hazard two seater with a supercharger, no seatbelts, and a dead hooker in the trunk and this is all perfectly acceptable based on the terms you agreed to with Uber. And the worst part is that protective measures like a commercial drives license simply dont exist. Your driver could be a meth-addled convict with a bottle of jagermeister between his legs, but since he never had to go through a background check or a drug test or even a physical, the hook he uses to steer the car between epileptic bouts of withdrawal is in Ubers understanding a sterling example of a world class taxi service without the hassle of icky cabs. When he wraps the front end of his 1971 plymouth duster with the missing front brake around a utility pole, nothing in his insurance (should he care to buy some) is required to cover any part of you the paramedics collect from the street as they hustle you to the ER.
Good people go to bed earlier.
Horrible summary doesn't even bother to tell us what Uber is. Massive summary + complete lack of useful info = no clicky. Find better clickbait.
I don't get Uber. In Montreal, they offer their service, but they actually work with licensed taxis, at the official regulated price, just like any other taxi company. I don't understand why they can do it here, but make a big thing about it in other cities.
The libertarian view of this: Uber customers know that they are calling a car driven by some random person. If they want to do that, really, it's their own business. If they want the assurance of a background-checked driver, they are also free to call a taxi company. What's wrong with keeping the government out of it and letting people choose?
Enjoy life! This is not a dress rehearsal.
Why is it that every new Internet based solution concocted for the last decade or so always seems so great on the face of it, but fails horribly when that solution is cut loose on the general public? Just about every e-commerce project I can think of has massive problems of being exploited by society's dark underbelly... Was it a "good thing" to unleash the Internet on the general public?
This is why I am critical of the sharing economy. It is is the pinnacle of outsourcing where the management (uber, airbnb) reaps the cream of the profits at little risk, while their "subcontractors", so to speak, take the burden of all the risks (legally and financially), while also having to shoulder maintenance and operating expenses. The responsible and ethical move for these companies would be to properly inform these subcontractors the insurance requirements, legal risks, local workplace standards required for operation, and try to assist them if possible to meet these requirements.
Instead, they prefer to claim ignorance and shoulder all responsibility on their user base. When legal problems inevitably arise, they cast their users/subcontractors adrift, letting them fend for themselves. It's utterly disgraceful.
Seems like many people like Uber and are happy to take their chances, as with the conceptually similar airbnb.
Slugging in DC works pretty well with same "risks".
I just like to see cartels challenged...
Australia has limited fun resources, hitting peak fun in the late 1980s. At its height, they even made the incredible mistake of exporting fun via Crocodile Dundee. Additionally, since Australia is so far away from the rest of the world, importing fun is extremely expensive. As a result, Australia must conserve and ration what little fun they do have if they plan to have any fun in the foreseeable future.
I find it somewhat ironic that the only recourse mentioned in the summary is for the drivers to sue Uber. What about suing the government instead?
It seems ridiculous to have legislation which is so obscure that you can't know for sure if something is legal or illegal until some regulatory agency made a ruling.
These comments are mine; I do not speak for my employer.
If I want to take an informed risk, I should be allowed to have that opportunity.
You don't know if the driver has a license to drive, insurance, a criminal record, or that his vehicle is being properly maintained.
That isn't a calculated risk --- it's a roll of the dice that may be loaded against you.
I want to say it is no worse than any other web site, but it is. The old /. was shit, but it was OUR shit.
The Hillsborough Public Transportation Commission in Tampa Florida is trying the same tactic against Uber and Lyft here. http://www.bizjournals.com/tampabay/news/2014/05/07/ptc-will-continue-to-ticket-uber-and-lyft-drivers.html . $800 tickets for a corrupt organization that caters to established cab and limousine companies. Good read.
And considering the economic viability of these business ideas, they won't be around very long so any investment on the part of the individual should be considered lost.
This "sharing" economy or whatever the buzz word for it is, is nothing but another incarnation of questionable internet businesses with the sole goal of a lucrative exit strategy that would enrich the principals only.
May I ask why you have this view of Uber?
I live in Chicago and have been using Uber for over 2 years now. I cant get taxis in my area(industrial, no cars drive thru, calling a taxi takes about an hour with planning) and Uber(uberx, taxi or black car) have ALWAYS come thru for me. Usually within 5-10 minutes. Rates are resonable and you get to track your ride, share a fair with a friend, get a buddy home whos too drunk to do it on their own and get confirmation they were dropped off at the rigth place.
Im having a hard time understanding why it doesnt work for you.
So it ok for for a driver working for app to kill a child and hurt others with the victims left holding the bag for there medical cost due to all kinds of fine print that lets the drivers insurance and the app one using loop holes to get out of it. When with others drives doing a limo and taxi are fully covered with no loopholes allow ed to be I'm place
Uber has been a part of my way of transportation for 2 years now in Chicago. I dont have cabs that come by and walking to an area that does is about 4 city blocks away. Not completely undoable but not always the best choice.
Since Uber(personal car, taxi and black car) has come around in Chicago, i have been able to get a car instantly where ever i am and for a reasonable cost. Doing that thru a taxi service usually takes about 30-60min on a good night. Also, you get a reciept AND a map of route taken in email once the ride is done. This done automatically thru the service. The drive can not accept another fair until they end the current one. I also find its safer(rape, murder, etc) since all of this is tracked, you can see a picture of the driver before hand AND their rating by other passangers.
I was just visiting California and needed a ride back to the hotel after a long day of walking around Monterey Bay. Taxis? none in site. Uber? 3 uberx in the area. Guess which ill choose?
Also, not all areas have the same that Chicago does(uberx, taxi and black cars) so I understand you dont have all the same choices. Its a great service for those that want to use it. Dont knock it! hah
So it ok for for a driver working for app to kill a child and hurt others with the victims left holding the bag for there medical cost due to all kinds of fine print that lets the drivers insurance and the app one using loop holes to get out of it. When with others drives doing a limo and taxi are fully covered with no loopholes allow ed to be I'm place
What fucking loopholes? An Uber driver is on the hook the same as any other driver. If you drive into a ditch and kill your passengers, expect to be sued, Uber or not.
Warning! Uber shill detected!
Except that the driver has almost certainly voided their "residential grade" insurance policy by driving passengers commercially; meaning that they are essentially operating a vehicle uninsured. The state should step in to put a stop to this practice.
Is their insurance going to pay-out though? I would be shocked if my policy allows me to drive around people all day for money, and if I injure someone, good luck getting any money from me. OK, well, you can garnish my wages for 15% (max allowed in the state), have fun with your extra few hundred a month I guess.
Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
Uber is a great service that fills a need, and here comes government to fuck over their customers for the benefit of the taxi cartels. Fuck the rent-seekers, and fuck the politicians who do their bidding.
-jcr
The only title of honor that a tyrant can grant is "Enemy of the State."
"Shill"? He sounds like a typical Uber customer to me. The shills are the assholes spreading FUD for the taxi companies.
-jcr
The only title of honor that a tyrant can grant is "Enemy of the State."
I'm reminded of the "Tzigane" in Alongside Night. It's really nothing but a black market, in this case for transportation. Most people will feel about black markets however they feel about the level of control with other political and social issues, so I won't dive into that...just interesting to see the parallels between real life and fiction.
If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. -RR
Except that the driver has almost certainly voided their "residential grade" insurance policy by driving passengers commercially; meaning that they are essentially operating a vehicle uninsured. The state should step in to put a stop to this practice.
What are you "excepting" that from?
The driver is liable. The driver can get sued and lose everything. The state can prosecute and throw the driver in jail.
Uber has nothing to do with this and creates no loopholes.
Is their insurance going to pay-out though? I would be shocked if my policy allows me to drive around people all day for money, and if I injure someone, good luck getting any money from me. OK, well, you can garnish my wages for 15% (max allowed in the state), have fun with your extra few hundred a month I guess.
You'd be dealing with garnished wages, seized property, a revoked license, prison time if convicted of something like vehicular manslaughter, etc.
The one who gets to "have fun" is you.
There is no loophole here.
it takes a couple weeks to be approved as an uber driver, which includes interviews and background checks.
it's true that you can have problems with progressive or whoever if they hear you're doing uber. but uber provides a million in liability coverage for your passengers regardless. I'm not sure what the deal is for the people that you crash in to.
no tengo property. I wouldn't be drunk or high so i doubt it would be reckless like vehiclular manslaughter DMV might get mad because I got in a crash without insurance. a lien sucks, but it's the worst case scenario, even if you win a bazillion dollar settlement from me.
My experience in DC has been pretty much the same. I use public transportation most of the time, but sometimes that just doesn't work out. I use UberX and regular Uber a couple times per week. It's great to have a pleasant to use, somewhat affordable option.
Except that you don't want drivers without insurance in any case. Suppose a driver does $50K worth of an injury to somebody, doesn't have insurance, and has about $5K in assets. Bankrupting the driver isn't going to pay the medical costs.
"When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
There's a big difference between ceramic break pads and ceramic breaks.
Bankrupting the driver isn't going to pay the medical costs.
No, but in this case the Transport Accident Commission would pay the medical costs.
Maybe this is a difference between America and Australia but your medical costs will still be covered by the mandatory insurance scheme even if the at fault driver is uninsured. In Australia we call it "Rego" but it is actually a combination of the mandatory state vehicle registration tax and a compulsory third part insurance. You then get a sticker that MUST be displayed in the window of your car. It is about 10cm x 6cm, colour coded for the year and has a big number representing the month it expires. Not having a current one is an offence.
So if you get hit by an un-registered, un-insured driver your medical bills will be covered by the scheme and underwritten by the state. So the state has a vested interest in making sure that everyone has current insurance.
Note this insure is purely Third Part Person, ie medical costs of the other people. It doesn't cover property damage in any way.
Except that the driver has almost certainly voided their "residential grade" insurance policy by driving passengers commercially; meaning that they are essentially operating a vehicle uninsured. The state should step in to put a stop to this practice.
This. But in Australia there are two main grades, "private" and "commercial". It's easy to get "commercial" insurance for your car if you use it for commercial purposes.
There are really two issues at play here.
1. These drivers are unlicensed as taxi drivers, this means no police checks have been done, no driving to knowledge tests have been done and they dont have proper insurance meaning the passengers may not be covered. These are legitimate complaints.
2. In the state of Victoria (Vic), taxi's are heavily regulated with taxi plates going for 100,000 of Aussie dollars. AFAIK Victoria does not permit private cars unlike my state (Western Australia). So in this regard it's just revenue protection from a cash strapped state government.
Number 1 needs to be addressed by Uber drivers. Number 2 needs to bugger off.
Calling someone a "hater" only means you can not rationally rebut their argument.
Minor correction: registration stickers haven't been necessary in Victoria since the start of 2014.
Yup, it's a difference between the US and Australia. If we had a first-world health care system here, collecting medical expenses from auto insurance would be an implementation detail.
However, there's lots of possible costs that aren't medical bills. We can award money for pain and suffering in the US. Injuries can impair people's ability to work, and cause loss of income. People can be killed (lots of families would suffer economically if the breadwinner were killed). There can be property damage, as you note. That can easily rack up $50K or more of expenses that won't be covered by $5K of driver assets, so it really doesn't change my argument.
Registering a car in Minnesota requires third-party auto insurance (there may be self-insurance provisions for large companies, I don't know), must be done every year, and is shown by a colored sticker on each license plate, so that seems pretty similar.
"When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
I bet those garnished wages (the few hundred a month I mentioned) are really helpful if I'm in prison.
I don't really own enough assets that they'd be seized, if I did, then I wouldn't need car insurance to begin with.
Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
Q: What's the quickest way to get to Belanglo State Forest?
A: Hitch hike.
The Australian CTP (compulsory Third Party) program also covers award money for pain, suffering, loss of income etc.
I am personally going through that process as we were hit but a semi-trailer on a highway. Whole family was in the car and we were very lucky to get out without immediate injuries but my wife suffered compression fractures to her lower back as well as whiplash and disk bulges in her neck. Immediately we have been covered for medical expenses and are now in the process of compensation. That process though is about 2 years.....
Even in the event where the at fault driver wasn't insured the state still covers the insurance. Basically if you want to offer CTP insurance, the insurance company has to wear the risk of covering those costs if the at fault driver wasn't insured. The legal ramifications of being uninsured and at fault are huge so very few people risk it.
Ah you are ahead of QLD. 2015 they are scrapped.