Unconventional Backing for Uber in Victoria

For those who thought that the story of disruption to established ways of thinking and doing business being effected about the globe by online ride sharing company Uber could not develop any new twists - in the last week, in Victoria, the Australian Sex Party, through its leader Fiona Patten, has presented and has read for the first time (on 11 February 2016) in the Victorian Upper House the Regulation of Ridesharing Bill 2016 a new Bill to ". . . establish a legal framework for the regulation of ride sharing services in Victoria".

The Current Position in Victoria

Currently, the Uber service remains illegal in Victoria because drivers do not have licences to operate as taxi cabs or hire cars, conditions required to be met the by the current state regulations. In defence of this position, when challenged in court cases, Uber has argued that it is not providing taxi services, but facilitating a way for passengers and drivers to find each other.

The Proposed Victorian Bill

As yet details of the Bill are still not fully available as the Bill has not reached second reading stage, however, from the press it appears that the Bill, if passed, establishes a system for regulation, accreditation and the administration of ride sharing services across the state of Victoria.

The leader of the Australian Sex Party, Ms Patten, is reported as suggesting that the Victorian Government's delay in legislating has created a ". . . situation [that] will mean more uncertainty for the public and for both ride sharing and taxi drivers . . ." saying further, that guidelines for a fair and safe system were needed and that if her proposed legislation passed such could be achieved within a year.

State of Play

Several other jurisdictions have addressed the issue of ride sharing as well, so far, the key developments are as set out below.

ACT

On the question of legislation to regulate ride sharing and Uber style transport businesses, the ACT has been the first to enact legislation, having on 24 November 2015 enacted the Road Transport (Public Passenger Services) (Taxi Industry Innovation) Amendment Act 2015 (No. 47 of 2015) which is due to commence on 24 May 2016 (if not sooner commenced by the Minister).

In speaking to the legislation during its passage, the  ACT Minister described the amending legislation as allowing ". . . for innovation and competition in the taxi and hire car public passenger transport market . . ." while at the same time addressing risks to public safety and access, consumer protection and the ongoing provision of services by industry on a level playing field.

The legislation was said by the ACT Minister to allow for the entry of new businesses into the "on-demand public transport market" by:

• introducing the concept of ride sharing and defining its associated participants; and
• allowing for the regulation of ride sharing to encompass a range of measures that support public safety – through appropriate licensing, accreditation and insurance requirements for on-demand transport providers.

The regulatory framework created by the ACT legislation puts in place a hierarchy of vehicle/driver licensing and modes of operation based on information flows and features of the respective services to address risk, as follows:

• taxis – may operate in both the rank and hail sector as well as booked services sector, they can operate independently or through a Transport Booking Service (TBS);
• hire cars – can only provide booked services, but can operate independently or through a TBS; and
• ride sharing – can only provide a booked service through a TBS.

Describing the effect intended for the amendments, the Minister said in speaking to the legislation:

NSW

In NSW, the Passenger Transport Amendment (Ride-sharing Services) Bill 2015, a private member's Bill for an Act to amend the Passenger Transport Act 2014 so as to regulate ride sharing services in NSW was introduced on 19 November 2015 by opposition leader Mr Luke Foley, but so far has not proceeded any further.

Speaking on the Bill the opposition leader is reported to have told ABC News:

A position which in its logic appears to reflect the approach already legislated by the ACT Government, namely, that the key force behind disruptive technology is its ability to attract new customers in large quantity and that legislators are best to seek to regulate rather than deny the emergence of such disruptive technology.

QLD

In Queensland, the Transport Legislation (Taxi Services) Amendment Bill 2015 was introduced by Mr Katter (Leader of Katter's Australian Party) on 16 September 2015, and referred to the Infrastructure, Planning and Natural Resources Committee. The proposed legislation would seek to impose demerit point penalties on drivers who have been convicted of providing a taxi service without a licence, for example, a first offence would incur a three demerit point penalty and subsequent offences would incur six demerit points. In other words the proposed legislation seeks mostly to protect the existing industry and impose punitive measures on Uber and like ride sharing services.

While such might be effective in the short term it might be argued in the long term it will probably do more harm than good as technology will only respond by finding more ways to disrupt the existing models and monopolies.

Unconventional and Disruptive

It will be interesting to see if the Victorian legislation progresses to passage or whether in the end some compromise legislation is not arrived at which  the Victorian Government and the Australian Sex Party both agree to. Already it was reported that the Australian Sex Party is in negotiation with Government on the matter. Certainly, high in the negotiation debate for legislators should be the notion of embracing and adjusting to disruptive technology before it by-passes the Government - something Uber has proven it is quite capable of doing. 

TimeBase is an independent, privately owned Australian legal publisher specialising in the online delivery of accurate, comprehensive and innovative legislation research tools including LawOne and unique Point-in-Time Products.

Regulation of Ridesharing Bill 2016; Passenger Transport Amendment (Ride-sharing Services) Bill 2015 and Road Transport (Public Passenger Services) (Taxi Industry Innovation) Amendment Act 2015 (No. 47 of 2015) and supporting materials as reported in TimeBase LawOne Service.

Sex Party MP Fiona Patten pushes bill to make Uber legal in Victoria (Aust Sex Party Website)

Sex Party’s ride-sharing bill would legalise Uber in Victoria (Delimiter)