Uber drives up competition in taxi market

Uber drives up competition in taxi market

The war between taxis and Uber will be fought on a level playing field if a new recommendation is introduced.

The Government wants taxis and private hire services like Uber to operate under the same rules, to create more competition and choice in the taxi market.

Uber drivers could soon join the taxi ranks at Wellington airport. Currently they can only drop passengers off, although it's not strictly enforced.

Taxis have to pay a fee to be there, and they want Uber to pay too. And it doesn't stop at the airport; taxi drivers around the world have protested against Uber operating without regulation. That's set to change.

"Everyone is moving with the times," says Associate Transport Minister Craig Foss. "The mission is to make sure the Government rules and regulations are."

Uber is a mobile app service that lets people book rides with private drivers. The company is disappointed with the recommendation, saying it doesn't think "a one-size-fits-all approach is the best way to deliver a really good outcome for New Zealand".

Under the new rules Uber drivers will have to limit shifts to seven hours and keep a logbook. They'll still require a passenger endorsement, which costs $800 and takes up to eight weeks.

But Roger Heale from the Taxi Federation welcomes what he calls a level playing field.

"Now it's really who can advance and who can adapt and may the best person win," says Mr Heale.

The recommendation removes some compliance for taxis. Companies are no longer required to operate 24/7. Drivers don't need English-language testing and they don't need an area knowledge certificate either.

If using an app, as many taxi companies do now, they'll have to agree on a fare basis before the journey rather than using the meter.

The Government says the new rules will allow innovative companies to enter the market, so expect to see even more competition.

If the recommendation is implemented, the changes will be made towards the end of next year.

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