By on September 29, 2015

Uber At Igby's In Cincy Circa April 2014

Officials in New South Wales, Australia are banning UberX cars from their roads for three months after failing to prosecute their drivers, the Sydney Morning Herald reported.

Authorities charged 24 drivers with violating the state’s taxi laws, saying the UberX car-sharing service couldn’t properly monitor and vet its 4,000 drivers in Sydney. Those charges were dropped due to “evidentiary issues” and the drivers avoided fines up to $70,000.

Now the state says it’ll ban private UberX cars from the road instead.

“If drivers continue to offer illegal ride-sharing services – they will continue to risk registration suspensions and fines,” Peter Wells, New South Wales’ Road and Maritime Services director, told the Sydney Morning Herald.

Uber’s problems aren’t in Australia alone. On Monday, Uber’s European headquarters was raided by Dutch prosecutors who said its UberPOP service in that country, and UberPOP has been banned in other European countries such as Germany, France and Belgium.

[H/T to Jack for sending us this one.]

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10 Comments on “After Missing Drivers, Australian Authorities Go After UberX Cars...”

  • avatar

    The first line is misleading. It’s banning 40 vehicles from driving. If that is ALL uberX vehicles it is unknown from link. In fact, it sounds as if it isn’t.

    Regardless, why is it surprising that a regulatory agency that finds a group circumventing that regulation (good or bad) is going to get hauled in? I’m not against Uber in principle, I’m against the taxi services that are exploited by the rich but I think Uber is just as bad. They create a market where too many people will drive down the value so we’ll just go through continuous boom and bust cycles for uber drivers. When uber drivers can’t make any money they’ll leave, drive up values, return, and go bust again.

    • 0 avatar

      “I’m against the taxi services that are exploited by the rich”

      Please explain.

      • 0 avatar

        I assume that he’s talking about the trafficking in taxi medallions, which in large cities have been bid up in value to the point that only well-heeled parties can afford them.

        • 0 avatar

          Exactly. I’m for a system that regulates the number of medallions but forces those medallions to be used by their owners rather than sub-leased or incorporated as part of a system to profiteer off of their limitation. The state has a right to monopolize a sector of industry if it’s in the states’ interest but they also have an obligation to keep that industry competitive and anti-exploitative.

          Nate hit it on the head, Uber maximizes their profit by getting more drivers on the road because they’re getting a cut of every driver’s action regardless of whether the uber drivers see a return on their action. It’s just an unregulated medallion system, instead of the medallions being rare and thus worth a great deal because non-drivers can buy them and lease them, one company takes a cut of each driver’s action in exchange for a medallion.

          Same problem, different approach, same outcome.

  • avatar

    I’m confused :

    Some uber drivers went missing or the govt. missed their chance at fining them ? .

    Here in So. Cal. the radio is jammed with commercials of young Women saying ‘ I think I’ll make some easy money driving for uber ‘ ~ that’s not going to end well .


  • avatar

    Seems that NSW doesn’t like UBER, but, the Australian Capital Territory is going to allow UBER and to sooth the ruffled brows of the incumbent Taxi services/owners/drivers they are also reducing the cost of said taxi services.

    Now this will create a conundrum. The ACT physically exists within the state of NSW and people regularly travel “out of state” to towns in NSW from Canberra, about a ten minute drive away. So if UBER is illegal in NSW, but legal in the ACT are we about to see border patrols to prevent UBER crossing the line?

  • avatar

    I don’t get how licensed Taxis are supposed to be any safer than Uber. When I was in Sydney, the taxis I road in were in a very poor state of repair. The suspension was clunking all over the place. I can’t imagine the average Uber to be much worse.

  • avatar
    Shortest Circuit

    Why people aren’t revolting against taxi companies baffles me. Every single UBER ride I had had a courteous driver and a car that would pass inspection (+clean!). Every time someone tried to screw me over (long route) or take me in a clunking, rattling deathtrap, he was working for a “proper” taxi company. Proper here meaning, they kick up to the local/state government to keep competitors out.

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