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Uber ignores Qld fines, launches maxi-cabs

A Queensland government crackdown on illegal ride-sharing operators is having little impact on Uber's plans to expand its business.

The Uber app in Brisbane
Uber is ignoring a Queensland government crackdown by launching a new service to rival maxi-cabs. Source: AAP

Uber has been accused of disrespecting the Queensland government and an independent review into ride-sharing by announcing a new service to compete with maxi-cabs.

Uber has emailed its customers to announce the launch of UberXL, which gives access to vehicles seating up to six people, and which the ride-sharing service claims is up to 30 per cent cheaper than a maxi-taxi.

The announcement comes in the wake of the Queensland government's decision last month to increase fines for Uber drivers from $1413 to $2356, while illegal administrators could be penalised up to $23,560.

A Queensland government taskforce has been set up to review how ride-sharing services can operate in the state.

The taskforce's chairman, Jim Varghese, has said the review is also looking at linking taxis to public transport networks to help drivers maintain revenue in the face of the increased competition from Uber.

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The taskforce findings are to be completed and released in July.

Uber XL is aimed at parties of five or six who would normally have to order two cabs or a maxi-taxi to accommodate their travel needs.

Taxi Council Queensland chief executive Benjamin Wash says he's disappointed with Uber's latest move.

"This just demonstrates their lack of respect and the disrespect for process," Mr Wash told AAP.

An Uber spokeswoman said the ride-sharing service was involved in the review and while there were hefty penalties for drivers and administrators, they had not altered their operations.

"Obviously we are working with the government and their review ... but at the moment it's business as usual and making sure we provide safe and affordable rides and different options for consumers," she told AAP.

Transport Minister Stirling Hinchliffe would not be drawn into commenting directly about Uber's initiative to break into the maxi-cab market, despite the ride-sharing service currently being outlawed in Queensland.

"While the Queensland government welcomes innovation in transport, passenger safety will always remain our number one priority and our transport inspectors must have the appropriate tools to ensure they can uphold current and any future regulations," he said in a statement.


2 min read

Published

Source: AAP



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