Uber Has Been Put On Notice by the NSW Government

Uber might be stepping up its war on New York City’s famous yellow taxis, with the introduction of a pre-paid service last week. But it ain’t faring so well on this side of the Pacific.

This morning, the New South Wales Road and Maritime Services (RMS) put the company on notice. Officially. And, as of midnight, September 30, 40 Uber drivers will have their vehicles suspended for three months. It's pretty serious stuff; if police catch any suspended vehicle on the road, they’ll view it as unregistered and uninsured. So, the owner will cop a $637 penalty on the spot and, if the matter goes to court, could be up for as much as $2200.

As far as RMS is concerned, Uber is breaking the law. “Taxi and hire car services in New South Wales must be provided by an operator accredited by Roads and Maritime, in a licensed and insured vehicle, which is driven by an authorised driver,” Peter Wells, director of safety and compliance at the RMS, told the ABC. “Thousands of dollars in fines have already been issued to drivers offering illegal ride-sharing activities and compliance actions will continue.”

Needless to say, the New South Wales Taxi Council welcomed the announcement. And the New South Wales Government has an independent task force looking into the future of taxis and hire cars. Its findings are set to reach the Government in October, so sit tight.

Whether this will affect Uber in the long term remains to be seen. It's definitely not the first time the company has been hauled into an Australian court. Importantly, Uber's also been pretty open about their intention to simply pay the fine — the company has copped whopping fines in multiple countries, including a $1.7 million fine in Queensland in June 2015, and a hefty US$7.3 million in California, just to name a couple. And they simply paid the fine. Uber's likelihood to simply budget for these driver fines in the foreseeable future could prove problematic for the RMS, and the Australian taxi industry.

Via ABC.