Uber gets the green light in Victoria, Australia

While popular ride-hailing service Uber looks set to withdraw from Macau, the company is on the path to see its operations legalized in other parts of the world.
After China’s ride-hailing apps attained the green light at the start of the month, leaving free reign for an Uber-Didi Chuxing agreement to dominate the enormous market, authorities in the Australian state of Victoria have since announced plans to legalize such services.
The new approach from authorities will be accompanied by the introduction of an AUD2 levy on every taxi, Uber or hire car trip made in the state, in an attempt to reform the industry, while compensating existing taxi drivers from traditional firms and funding a taxi license “buy-back” scheme. Taxi fares will also be deregulated by 2018.
Daniel Andrews, the premier of Victoria, said that the changes would reform the taxi sector while ensuring a level playing field for all industry participants.
“There will be more choice. There will be greater value,” he said, as cited in The Sydney Morning Herald (SMH). “This is comprehensive reform, but it is grounded in fairness.”
Authorities in Victoria have said that the government will buy-back a single taxi license for AUD100,000 and pay AUD50,000 for the second license of owners.
However, taxi drivers turned out in droves yesterday to oppose the plan, claiming that the buy-back scheme will only account for a fraction of the significant cost of purchasing taxi licenses.
It was announced that hundreds of furious taxi and hire car drivers are threatening legal action against the government on the basis that their expensive licenses stand to become worthless. They are also considering a strike to oppose the deregulations of the industry.
Taxi payment company, Cabcharge, has described the package as insufficient.
Meanwhile, the new AUD2 levy is penned to be introduced at some point in 2018. It aims to raise an estimated AUD44 million per year, which will offset an estimated AUD75 million – to be paid (almost immediately) in compensation to existing taxi drivers –  within two years.
Operators in the industry will be able to determine how to apply the levy – whether directly to the customer or through absorbing it as a company cost.
“It may well be less than AUD2 for a short trip and perhaps more than AUD2 for a longer trip,” premier Andrews said. “It will be a matter for them [providers] and that will be another point of competitive difference.”
Uber at present have not clarified whether the levy fee will be passed directly on to customers who use their service. According to SMH, a spokesperson for the company also declined to say if driver earnings would be protected.
Ride-hailing app legalization – even if it is occurring in one city or state at a time – is good news for Uber and the value of the company. Many anticipate an Uber IPO sometime in the near future, which “would be massive,” as reported by investment website Zacks.
“Thanks to Uber’s structure – a unique combination of transportation company, mobile internet company, and real world engineering – the company has been touted as one of the best future IPO candidates,” it added.

uber suspends service in abu dhabi

Ride-hailing service Uber and its competitor Careem have unexpectedly suspended services in the United Arab Emirates capital of Abu Dhabi.
San Francisco-based Uber told The Associated Press yesterday that the move was temporary and that its “goal is to resume operations as soon as possible.”
The company declined to say what prompted the suspension.
The state-backed daily The National reported that rival car service Careem also halted services in the capital starting Saturday afternoon.
In a statement to The Associated Press, Careem said the suspension came after some of its cars were stopped by authorities.
Officials at the Abu Dhabi Department of Transport could not be reached for comment.