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Uber launches new service in Aussie state despite being outlawed

Xinhua, June 23, 2016 Adjust font size:

Uber launched a maxi-cab style service with UberXL in Australia's Queensland state on Thursday, allowing parties of up to six people into one car, a service it claims is up to 30-percent cheaper than current traditional "maxi-taxis."

Uber's ride-sharing service however is outlawed in Queensland state, with regulators in May increasing fines to 2,356 Australian dollars (1,772 U.S. dollars) for Uber drivers, and up to 23,560 Australian dollars (17,718 U.S. dollars) for administrators caught.

State authorities have also launched an independent review into ride-sharing services.

"This just demonstrates their lack of respect and the disrespect of the process," Taxi Council of Queensland chief Benjamin Wash told local media.

Uber has not altered its operations in the state from the harsh penalties, but is involved in the review of ride sharing services.

"Obviously we're 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," an Uber spokeswoman told local agency AAP.

Other Australian states however have taken a shine to the disruptive transport service, with both the Australian Capital Territory (ACT) and New South Wales (NSW) legalising ride sharing services to increase regulatory oversight.

NSW has gone so far as to compensate taxi services who find hardship from the increased competition with Uber through 250 million Australian dollar (188.01 million U.S. dollar) package, to be paid for by government and passengers, touted as unlike anything else seen in the world.

The package, legislated in NSW parliament on Wednesday night, includes compensation for the reduction in taxi licence fees, a buy-back of hire car licences and a 142 million Australian dollars (106.79 million U.S. dollars) fund for "licensees facing hardship," paid for by a one-Australian dollar levy on passengers.

Queensland's Transport Minister Stirling Hinchliffe said the state government welcomes innovation in transport, but "passenger safety will always remain our number one priority."

"Our transport inspectors must have the appropriate tools to ensure they can uphold current and any future regulations," Hinchliffe said. Endit