South Australia Minister for Transport and Infrastructure Stephen Mullighan

Uber Claims Just Don’t Stack Up

Victor P Taffa

The State Government has rebuffed claims by the multinational ridesharing company Uber that South Australia’s regulations and costs are out of step with other states.

A table released today by Uber contains a number of errors, duplications and even some fees that appear to have been made up.

“Uber is merely trying to pressure the Government to further reduce costs and requirements, on top of the massive reduction already granted in the Government package announced in April.” Minister for Transport and Infrastructure Stephen Mullighan said.

“Uber is well-known for this behaviour around the world. The State Government won’t be bullied into compromising safety for drivers or passengers.”

Uber’s statistics misstate the cost of entering the South Australia market as almost double the actual cost.

 

“The comparable costs between the ACT and South Australia (SA) are less than $100 apart. $500-$600 is a small price to pay for drivers to get access to a new industry and work opportunity, and to ensure that they, their car and their activities among other road users are safe.” Mr. Mullighan said.

“It’s a worrying sign that a company seeking to offer South Australians their services could be so wrong. Within 24 hours Uber claimed costs in SA were $900 in an interview to The Advertiser, then that they were $700, and now that they are $1,200. Its messages seem panicked and hysterical.”

The Government says Uber is making false claims to the media and the public on both the costs and requirements for drivers to operate in South Australia and the Australian Capital Territory (ACT).

“Uber has been meeting with the Government, seeking to fast-track driver applications and get operating out on the road, yet they are telling the media they won’t launch in South Australia.” Mr. Mullighan said.

“It is also concerning that the state Liberals favour giving Uber everything it wants at the expense of important vehicle and driver safety checks.”

The Government says it is willing to keep talking to Uber but won’t compromise on the safety of passengers or other people out on the road.

“We’ve seen the federal Liberals roll over on multinational companies avoiding paying tax, now we’re seeing the state Liberals roll over on vital safety and insurance requirements.” Mr. Mullighan said.

 

Background

The annual CTP increase for ridesharing vehicles in South Australia will be $269.00, not $431 as claimed by Uber.

Three CTP insurance providers in the ACT have increased their premiums for ridesharing vehicles by between $274 and $287. Only one provider is offering an increase of $57.

The annual inspection fee in South Australia is $75 not $77.

Driver Accreditation and Vehicle Fees in South Australia will be a single fee of $85, not $250 ($165 + $85) as claimed by Uber.

Annual vehicle inspections in the ACT are $65.40 not $52 while Police history checks are $45 not $38 as claimed by Uber.

In addition the ACT charges various other fees, such as an annual fee to Uber of $20 per driver, something South Australia will not be doing.

The State Government has never said there would be a driving skills assessment. It appears this fee has simply been made up by Uber.

Uber also claimed that the ACT does not charge operator fees. This is incorrect as well.

The table below outlines the cost comparisons between the Australian Capital Territory (ACT) and South Australia (SA):

 

                                                              ACT                                       SA

Vehicle/Licence Fee                            $100.00                                   $85.00

Annual Vehicle Inspection                 $65.40                                     $75.00

National Police check                         $45.00

(does not include working with children check)

(includes working with children check)                                              $101.70

Driver History Check                              $23.80                                     $0

Variation to CTP Cost                             $274.90                                   $269.00 (depends on CTP provider)

Variation to Lifetime Support Levy   $0                                            $77.00

TOTAL ACCREDITATION COST  $509.10                                   $607.70

In addition the cost of registering a car in the ACT is significantly more than SA. Registration, CTP and other fees for a Corolla Accent Hatch 4 cylinder vehicle costs $949.80 in the ACT, while in South Australia it only cost $720.00.