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Uber snub fallout in NT worsens, as minister and company executive trade barbs

Tuesday, 23 Feb 2016 10:36:09 | Nadia Daly And James Dunlevie

The ride-sharing company Uber has been refused entry into the Northern Territory. (ABC News: Garth Caird)

The fallout from the government decision to bar ride-sharing service Uber from the Northern Territory has deepened, with the Transport Minister describing the company's representative as a "spoiled brat" during an interview.

On Tuesday, the ABC reported exclusively that the Government decided against making legislative changes to allow the company — and others like it — to operate legally in the jurisdiction.

The decision came as the Government's Commercial Passenger Vehicle Industry Review Report was released.

The company had been in talks with the NT Government to try to reach an agreement on legislation that would allow it to operate legally in the NT.

Transport Minister Peter Chandler today said the decision could be reconsidered at a later stage after examining legislation interstate.

What is Uber?

  • An app-based service connecting customers with drivers who use their own cars to provide transportation.
  • Available in 60 countries and established in 2009.
  • Uses GPS to find a customer's location and connect them to the nearest driver.
  • Customers pay using the app and no cash is handled in the vehicle.
  • The price is charged per minute or per kilometre plus a base fee, and can change depending on demand.
  • Drivers must pass a background check, have insurance and have a registered car.
  • Offers a range of service levels - the two most common are UberX and UberBlack.
  • UberX is the budget option, which connects registered drivers who use their own, everyday cars to provide lifts for customers. Generally cheaper than a taxi.
  • UberBlack is a more expensive luxury version of UberX, in which customers are picked up in a "high-end" black sedan, by a professional chauffeur with a commercial licence and commercial auto insurance.
  • Other services include Uber SUV, Uber Lux and Uber Taxi, however these are not available everywhere.

"At the moment it's illegal for Uber to operate in the NT, but I will be looking very closely at how Uber operates interstate ... having a look at the regulation that other states are introducing to make sure we have the right fit for the NT."

Speaking on 105.7 ABC Darwin the morning after the decision, Uber's head of policy Brad Kitschke blasted the Government.

"They haven't been able to do what governments are supposed to do ... make a decision," he said.

Mr Kitschke said the Government's report had found customer dissatisfaction with the current state of the NT's taxi industry.

"Are people happy with taxis, do people feel safe with taxis? They don't," he said.

"If those are working so well, then why has the Government said in its report that they're not.

"The question for the people of the NT is, do they want a government that is open to competition, new ideas, about delivering better services, or do they do they want a government that can't make up its mind?"

He dismissed assertions that the Northern Territory's population was too small to sustain a ride-sharing service, pointing to the ACT, and said concerns over security in Uber vehicles was unfounded.

"Private hire vehicles don't have cameras," he said.

Mr Kitschke said Uber would "continue to talk to the Government", but said it "has to have an open mind".

The Government's report found throughout the consultation process "community members consistently commented on poor taxi service and availability".

It found 67 per cent, or 114 of 171, of passengers responded to the question regarding their experience with taxis in the last 12 months "by advising they were not receiving a satisfactory service and their safety had been compromised".

Uber reaction that of a 'spoiled brat'

Mr Chandler rejected Mr Kitschke's claims and said the NT had "a different market".

NT Government Minister Peter Chandler Photo: Minister for Transport Peter Chandler has described Uber's reaction at being refused entry to the NT as that of a "spoiled brat". (ABC News: James Dunlevie)

"I am very disappointed in Brad's approach ... he sounded like a spoiled brat," Mr Chandler said.

"The reality, is we do have a different market in the NT to Sydney and Melbourne."

Mr Chandler said his department would "review what is going on around the country... [and] look very closely at the regulation, to get a level of uniformity".

He said his view was "Uber and other companies like Uber are a wake up call for our taxi industry".

Mr Chandler said the intent of the Government's report was to improve the commercial transport industry and taxi operators "recognise they've got to lift their standards".

Mr Chandler refused to give a time frame on when, if at all, Uber might be able to operate in the NT.

Meanwhile, the NT Taxi Council's Les Whittaker dismissed any suggestion the council sought favours through political donations.

"We don't. Certainly not," he said.

He praised the position taken by the Government.

"I think the Government is quite right to stand up against Uber".

A need for ride-sharing in outer Darwin, say local member

Meanwhile, the Member for Goyder, Kezia Purick, said people in Darwin's rural area would welcome a ride-sharing service.

"For various reasons taxis don't want to come all this way out [to the rural area]," she said.

"The other thing is a lot of people just can't afford the taxi ride home."

Ms Purick said an informal ride-sharing economy was already operating in Darwin's rural area.

"The sharing of cars is going on already, on social media and messaging."

Public anger on social media

The news of Uber's knockback was not received well by members of the public, who took to ABC Darwin's Facebook page to vent their frustration.

"Mr Chandler said it was up to the taxi industry to boost its own standards to bolster itself against competition posed by Uber ... no need to bolster yourself against competition when the Government decides to save you from yourself," said James McArthur.

"What a load of crap. Darwin has rubbish public transport and a horrible taxi service. Uber is the best thing to happen in Perth and other cities I visit!" wrote Tyrone Ryba.

Other comments included "we need the competition, it's 2016 not 1956", and "ridiculous decision".

But ABC audience member Rick Murray welcomed the Government's decision.

"It was either that or buy back all the taxi licences and that they're doing in NSW. That would've cost a fortune," he wrote.

External Link: Document cloud - NT Dept of Transport

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