Uber and taxis to be covered by same regulations under Transport overhaul

Thursday 21st April 2016

An overhaul of the way taxis and private hire companies operate has been set out by Transport Minister Simon Bridges in response to the rise of ride-sharing companies such as Uber.

Under the proposals, both taxis and Uber-like services would be subject to the same regulations as a 'small passenger service'. The changes mean that drivers will no longer have to have an area knowledge certificate and have passed a full licence test in the previous 5 years. Ministers are also reviewing whether drivers will need to have completed a passenger endorsement course. The course costs drivers between $400 and $700. The area knowledge certificate is being dropped due to the rise of satellite navigation systems which mean local knowledge is less important.

In addition operators or companies will no longer have to belong to an approved taxi organisation, operate services on a 24/7 basis, have a certificate of knowledge of law and practice, hold a passenger service licence and ensure driver panic alarms are monitored 24/7 from a fixed location.

In-vehicle camera recorders will also only be required in the 18 main urban areas. The NZ Transport Agency is to offer specific exemption criteria when the transport operator can demonstrate it is providing services to registered passengers only, collects driver and passenger information, where this information is available and a record of each trip is retained. This would enable Uber to be exempt.

Drivers will still be required to hold a P endorsement and display an identity card. A fit and proper person check, including a police check, will be carried out before a P endorsement is granted.

Transport Minister Simon Bridges said the regulations covering the sector hadn't changed since 1989 “New technologies like smartphones and apps have changed the way the sector can operate. Modernising our rules will ensure they are flexible enough to accommodate new business models".

Assistant Transport Minister Craig Foss said the overhaul would still ensure the safety of passengers "“Retaining the need for drivers to have a Passenger endorsement, which includes a police check, means consumers can feel safe no matter what option or service they choose.”

The changes follow a consultation process which ran from Dec 14, 2015, to Feb 12, 2016. Parliament will consider the proposals under the Land Transport Amendment Bill 2016.

Earlier today, Uber contacted customers to say it would be cutting its prices for its UberX service by 20% in Auckland and Wellington. It also said it was cutting the cost of becoming an Uber driver to $20 and ensuring it would take only six days to complete.

BusinessDesk.co.nz

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