Brakes put on illegal UberX ride-sharing in Victoria

Victoria's taxi regulator has ordered 'ride-sharing' company Uber to stop offering its low-cost product, UberX, because it is illegal.

The edict by the Victorian Taxi Services Commission follows a similar order issued in August by Queensland's regulator, which Uber has so far ignored, and fines levied on the service's drivers in NSW.

The commission has also stepped up action against individual drivers by prosecuting them in criminal court rather than issuing infringement notices - a tactic that increases the fine drivers could face from about $1700 to as much as $7500. The moves represent a significant hardening of the commission's position on Uber, which Taxi Services Commissioner Graeme Samuel in September said was engaging with the regulator in a "positive manner".

Despite the stop order and increased risk of prosecution faced by drivers, Uber continues to advertise on the internet for people to "earn money with your car" by signing up with the service.

UberX drivers use their own car to pick up fares booked through a smartphone app

Uber spokeswoman Katie Curran did not answer when asked whether the company would comply with the commission's order and whether it would pay driver's fines.

Victorian Taxi Association spokeswoman Georgia Nicholls welcomed the commission's move.

"It's a very difficult position that the regulator has been put in, to deal with companies that have no regard for the law," Ms Nicholls said.

A commission spokeswoman said it sent Uber a cease-and-desist letter on October 23.
"By doing so, the TSC has made it clear to Uber that its UberX product is illegal in Victoria in its current format," she said.

"In addition, the TSC will continue with its compliance and enforcement activities and continue to explore further options for enforcing the law against Uber unless Uber changes its product to bring it into compliance with Victorian law." She said Uber's high-end Uber Black service, which uses accredited drivers and licenced drivers, was legal and welcomed by the commission "as it increases competition and provides more choice for passengers".

However, UberX drivers use their own car to pick up fares booked through a smartphone app.

"Unlike the Uber Black product, UberX does not generally use accredited drivers or licenced vehicles, which means the service is operating outside the law. These issues may pose a safety issue for both passengers and drivers," she said.

Uber's safety problems include a San Francisco driver charged with assault in September after allegedly seriously injuring a passenger by bashing him in the head with a hammer and a Washington DC driver arrested in March for allegedly raping a customer.

The commission spokeswoman said the regulator had started a "targeted prosecutions campaign against UberX owners for operating a commercial passenger vehicle without appropriate authorisation", with 11 cases before Melbourne Magistrates Court. As well, 80 summary infringement notices had been issued.

"Uber has a long history of setting up services all around the world and operating outside the confines of the law," the spokeswoman said. She said Uber had committed to having UberX drivers accredited, but "the licensing of vehicles is still an outstanding issue for UberX"."Once accredited, these drivers become part of the weekly criminal data checking which is conducted on all accredited drivers by Victoria Police. This will provide a greater level of safety for passengers," she said.