Uber GoCatch Drivers Pay More For GPS Plan

Now Uber (the ride-sharing private market transport service) provides the government benefits, it is now set to be legalised in Victoria following other state governments.

Under new changes announced by the NSW Government, Uber and GoCatch will have their insurance premiums calculated their GPS data.

“The Government has been working on this for 15 months, I think six more weeks should be plenty of time. We have established the foundation for this in our bill … now it’s about migrating the regulations that will keep control in this industry and allow it to operate safely. Ms Patten said potential compensation for taxi licence-holders should be treated on a case-by-case basis, and she wanted a level playing field for all hire cars. “That may mean deregulating the taxi industry to a certain extent, because they’ve been regulated because they’ve had a monopoly up until now,” she said. (Patten in Livingston, 2016)

This is a trade-off of protective regulation (government created monopoly regulation) for some private market regulation to increase competitive prices.

As if the industry could not operate safely without it.

“The Greens said ride-sharing must support disabled passengers, with some wheelchair passengers reporting longer wait times for taxis since Uber started operating.” (Livingston, 2016)

Ensuring all consumers are looked after are the highest priority for the private industry to ensure consumer satisfaction and quality service.

“Minister for Innovation Victor Dominello said the “user pays” model would result in regular drivers paying higher green slip costs, depending on how often they used the apps to pick up passengers.” (Dole, 2016)

Required to share driver data to insurers and regulators.

“”This is a very fair system for ride-share operators because it means if you’re driving a lot and you’re making a lot of money, you’re going to be paying a premium set on that,” Mr Dominello said.” (Dominelli in Dole, 2016)

Taxing the hard workers, while equaling payments to that of the amount paid by taxi companies.

“Sydney taxi owners pay an average of $7,800 per year, but the Government said the changes would result in premium reductions of about 40 per cent.” (Dole, 2016)

“Only once we know that can we start the discussion about how that’s going to be recovered, whether it’s going to be from the drivers or from the passengers,” Mr Rohrsheim said.” (Robrsheim in Dole, 2016)

Uber’s manager is currently working on whether the cost will be paid by drivers or consumers, however either way it is a tax on the industry.

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Reference List

Livingston, A. (2016). Uber to be legalised across most Australian states. News. Retrieved [04/07/16] from <http://www.news.com.au/finance/business/travel/uber-to-be-legalised-across-most-australian-states/news-story/0e1de5b1a8ca365ffbb9166b4ffff86a>.

Dole, N. (2016). Regular Uber, GoCatch drives ‘will pay more’ under gps tracking plan. ABC. Retrieved [04/07/16] from <http://www.abc.net.au/news/2016-07-04/regular-nsw-uber-drivers-to-pay-more-under-new-gps-system/7566348>.

Featured image supplied from Pixabay.