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DRIVE A2B August 2017

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<strong>DRIVE</strong><br />

Voice of the Victorian Point-to-Point Transport Industry<br />

AUGUST <strong>2017</strong><br />

NO 04<br />

incorporating<br />

VOICE<br />

OF THE TAXI INDUSTRY<br />

TAXITALK<br />

MAGAZINE<br />

on the ranks since 1966<br />

UNITY<br />

IS WHAT IS<br />

NEEDED<br />

IN THIS INDUSTRY<br />

TAXIS HIRE CARS RIDE SOURCING OWNERS <strong>DRIVE</strong>RS SERVICES


DEREGULATION<br />

IS COMING!<br />

WE WANT YOUR TAXI!<br />

Have<br />

you had<br />

enough?<br />

Are you<br />

looking to<br />

retire?<br />

Do you<br />

want a<br />

change?<br />

FAIR PRICE PAID & IMMEDIATE SETTLEMENT<br />

GET OUT NOW!<br />

BEFORE DEREGULATION<br />

DESTROYS YOUR BUSINESS<br />

CONTACT HARRY<br />

0418 333 433<br />

email harry@taxilink.com.au<br />

1313-1315 North Road, Huntingdale<br />

Phone 9543 8700


CONTENTS<br />

REGULARS<br />

6 Really Minister<br />

The Victorian Minister for Transport has<br />

been less than forthcoming with the facts.<br />

It is a classic example of not what you say,<br />

but what you don’t say.<br />

10 VHCA update<br />

Vice President, Andre Baruch, gives an<br />

update on the TSC Ride Share Steering<br />

Committee and the Melbourne Airport<br />

Landside Operator’s Committee.<br />

16 Victorian Taxi & Hire Car<br />

Families<br />

Over 500 people attended their recent<br />

meeting to discuss the status of our<br />

industry and to be encouraged not to give<br />

up hope.<br />

20 Autonomous cars<br />

These vehicles won’t stop congestion, but<br />

they will make your future commute a lot<br />

more pleasant.<br />

26 Your say<br />

Letters and emails received by <strong>DRIVE</strong> <strong>A2B</strong><br />

regarding the point-to-point transport<br />

industry.<br />

32 Industry statistics<br />

Figures for last month’s Victorian taxi and<br />

hire car industry statistics.<br />

36 Overseas news<br />

Snippets regarding the point-to-point<br />

industry around the world.<br />

Editor<br />

Mrs Toni Peters<br />

Publisher<br />

Trade Promotions Pty Ltd<br />

PO Box 2345, Mount Waverley Vic. 3149<br />

Advertising enquiries<br />

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P 0400 137 866<br />

E tonipeters@drivea2b.com.au ·<br />

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<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong> 3


Welcome<br />

to the <strong>August</strong> <strong>2017</strong> edition of<br />

DRiVE<br />

Voice of the Victorian Point-to-Point Transport Industry<br />

Editorial<br />

Melbourne Airport is<br />

changing the way that<br />

they are collecting the<br />

fees from taxi drivers<br />

who wish to service passengers<br />

at Melbourne Airport.<br />

As of 1 September the current<br />

swipe card process will no longer<br />

be used. Instead gantries will<br />

identify a vehicle as being a taxi<br />

and the vehicle’s e-TAG will be<br />

debited.<br />

To date nothing has been<br />

mentioned with regards to Hire<br />

Car or Ride Share vehicles and<br />

whether there will be a charge to<br />

their e-TAGs in the future.<br />

Last month, in a recent<br />

letter from the Taxi Services<br />

Commission (TSC) regarding the<br />

Transition Assistance package,<br />

it was stated that the package<br />

provides a lump-sum, upfront<br />

payment to eligible taxi and hire<br />

car licence holders. At this stage<br />

the Australian Taxation Office is<br />

treating this value as income and<br />

it will be subject to tax.<br />

The letter also stated that all<br />

eligible licence holders (those<br />

who held an eligible licence on<br />

15 <strong>August</strong> 2016 and still held<br />

that licence on 14 July <strong>2017</strong>),<br />

will automatically receive their<br />

Transition Assistance payment<br />

shortly after legislation passes<br />

through parliament.<br />

Perhaps it should have read<br />

IF legislation passes through<br />

parliament. It hasn’t passed yet<br />

and you should never pre-empt<br />

what this government of ours is<br />

going to do.<br />

The letter also asked the<br />

question “WHAT YOU NEED TO<br />

DO?” It’s answer was “NOTHING!<br />

– IT’S BUSINESS AS USUAL.”<br />

NOTHING? Really? What<br />

is usual about the state this<br />

industry is currently in?<br />

What is usual about the fact that<br />

this government is cancelling<br />

all taxi and hire car licences<br />

and only giving a pittance of<br />

remuneration back to their<br />

owners?<br />

What is usual about the regulators,<br />

the TSC, not enforcing the<br />

regulations?<br />

Last month a position was<br />

advertised for a “Senior Accessible<br />

Transport Services Administration<br />

Officer” for the TSC. The<br />

advertisement stated that the TSC<br />

regulates the taxi and hire vehicle<br />

industries in Victoria. Now that’s<br />

interesting - because of late they<br />

haven’t been enforcing the rules<br />

and regulations of the Transport<br />

Act, yet they still advertise<br />

themselves at regulators!<br />

Jacinta Allan, Minister for<br />

Transport, said after last month’s<br />

train debacle, that the computer<br />

malfunction was ”completely<br />

unacceptable” and said that<br />

tighter control to stop a repeat of<br />

the problem will be put in place.<br />

How is she going to have tighter<br />

control over the computers or<br />

the programs that run the train<br />

system? Maybe she has a looking<br />

glass that is able to tell when<br />

these things are going to happen<br />

and therefore she can wave her<br />

wand and stop them!<br />

4 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


incorporating<br />

VOICE<br />

OF THE TAXI INDUSTRY<br />

TAXITALK<br />

MAGAZINE<br />

on the ranks since 1966<br />

She also announced that the<br />

government is looking at capping<br />

Uber’s surge pricing in such<br />

situations. Ms Allan said the<br />

company was being “put on<br />

notice”.<br />

“Certainly as part of broader<br />

reforms to the industry, these<br />

sorts of concerns on consumer<br />

protection is exactly what we want<br />

to have in place,” she said.<br />

But, Ms Allan, this is what Uber is<br />

all about. Low fares when there<br />

is a glut of commercial passenger<br />

vehicles on the road and then hike<br />

them through the roof when there<br />

is a shortage.<br />

Uber has been doing this all<br />

around the world ever since it<br />

started - some eight years ago!<br />

This is how Uber and their driver<br />

partners make their money. Uber’s<br />

drivers cannot live on the regular<br />

fares that they offer, so they<br />

accept those fares and then wait<br />

patiently until the surged fares<br />

come along.<br />

Does Ms Allan really think that<br />

SHE is going to get Uber to stop<br />

surge pricing? Surely she can’t be<br />

that shortsighted? Perhaps she<br />

should go to Specsavers!<br />

By the way, hasn’t the government<br />

just about deregulated this<br />

industry, and now they are<br />

spruiking that they will be putting<br />

regulations in place. Anyone out<br />

there confused?<br />

Uber has so many problems that<br />

even getting rid of CEO Travis<br />

Kalanick has not enabled the<br />

company to resolve all of their<br />

problems.<br />

Just last month the company<br />

was slapped with another<br />

lawsuit in New York’s Supreme<br />

Court, over its near-total lack of<br />

wheelchair accessible vehicles.<br />

Apparently only 100 of Uber’s<br />

58,000 city cars are equipped to<br />

transport wheelchair customers.<br />

Disability Rights Advocates (DRA)<br />

website shows a complaint<br />

by the plaintiffs (a coalition of<br />

activists) and it states, “Uber has<br />

demonstrated a total disregard<br />

for the needs of people with<br />

disabilities in the provision of its<br />

transportation services and the<br />

anti-discrimination laws of New<br />

York City”.<br />

DRA also says that passengers<br />

trying to hail a car with Uber’s<br />

pilot program for wheelchairaccessible<br />

vehicles, UberWAV,<br />

“face extended wait times, or are<br />

still denied access to the service<br />

altogether, demonstrating that the<br />

new service is nothing more than<br />

window-dressing, designed to<br />

avoid government regulation and<br />

legal requirements”.<br />

So, if Uber is unable to provide<br />

enough vehicles for its UberWAV<br />

program in New York City, it is<br />

most unlikely that it will be able<br />

to provide them in Victoria. And<br />

by their own admission, Luke<br />

Groeneveld said during the<br />

Parliamentary Enquiry that this is<br />

certainly not their priority, nor is it<br />

priority to get Uber driver-partners<br />

in regional areas.<br />

Toni Peters<br />

EDITOR<br />

Views expressed in any article in <strong>DRIVE</strong> <strong>A2B</strong> magazine are those of the individual contributor and not necessarily those of the publisher. The publisher cannot accept any<br />

responsibility for any opinions, information, errors or omissions in this publication. To the extent permitted by law, the publisher will not be liable for any damages including<br />

special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of<br />

any kind arising from the contract, tort or otherwise, even if advised of the possibility of such loss of profits or damage. Advertisements must comply with the relevant provisions<br />

of the Competition and Consumer Act 2010. Responsibility for compliance with the Act rests with the person, company or advertising agency submitting the advertisement.<br />

<strong>DRIVE</strong> <strong>A2B</strong> TM is wholly owned by Trade Promotions Pty Ltd. © Trade Promotions Pty Ltd <strong>2017</strong>. All rights reserved. Copyright of articles and photographs in <strong>DRIVE</strong> <strong>A2B</strong> TM<br />

remains with the individual contributors and may not be reproduced without permission.<br />

<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong><br />

5


VIEWPOINT<br />

Really<br />

Minister<br />

ALTERNATIVE FACTS!<br />

In Victoria there are<br />

approximately 5600 taxi<br />

licences and 2700 hire car<br />

licences. The Minister’s<br />

public suggestions that taxi<br />

drivers will be $23,000/year<br />

better off, is simply untrue.<br />

We have been advised that less<br />

than 10% of the 5600 Victorian<br />

taxi fleet pay $23,000/year to the<br />

Victorian Government. The 2700<br />

hire car licences are privately<br />

owned, cannot be leased, therefore<br />

the $23000/year has no bearing on<br />

the hire car industry at all.<br />

In fact nothing in this Bill adds<br />

any improvements to the hire<br />

car industry. We have spoken to<br />

customers of the hire car industry<br />

and Minister Allan should do the<br />

same.<br />

New ride sharing entrants to<br />

Victoria (primarily Uber) will<br />

not have to pay $23000/year<br />

while the Minister leaves the<br />

established industry financially<br />

ruined with legacy debt and also<br />

emotionally shattered.<br />

In a letter by Minister Allan to<br />

the Scrutiny of Acts Committee<br />

(SARC), with regards to the<br />

Commercial Passenger Vehicle<br />

Industry Bill <strong>2017</strong>, the Minister<br />

wrote that there was no Charter<br />

concern because ‘there is<br />

some doubt’ as to whether a<br />

taxi licence under the current<br />

legislation was property.<br />

In support of that idea, the<br />

Minister referred to a British<br />

planning law case in which the<br />

loss of value in a home was<br />

found not to be a property right.<br />

What the Minister did not<br />

mention was, that the question<br />

of taxi licences as property<br />

has already been decided in<br />

Australia..... by the High Court!<br />

In Federal Commissioner of<br />

Taxation v Murray (1998) 193<br />

CLR 605, the majority of the High<br />

Court wrote that “the licence<br />

is property... A taxi licence is a<br />

valuable item of property because<br />

it has economic potential. It<br />

allows its holder to conduct a<br />

profitable business and it may<br />

be sold or leased for reward to a<br />

third party.”<br />

There is no doubt that taxi<br />

licences in Australia are property.<br />

Minister Allan also publicly claims<br />

that the Victorian government<br />

are providing the most generous<br />

compensation package in<br />

Australia.<br />

Minister Allan says this without<br />

providing any context - no other<br />

State or Territory in Australia is<br />

cancelling $1BILLION of taxi-cab<br />

and hire-car licences; in fact,<br />

we are unaware of any other<br />

place on the planet where this<br />

bizarre decision has been made<br />

to accommodate ride-sharing<br />

operations.<br />

It was simply not necessary to<br />

do this to introduce ride share<br />

providers to Victoria’s commercial<br />

passenger vehicle industry.<br />

The failure of the Taxi Services<br />

Commission (TSC) has left<br />

6 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


Victorian Transport Minister<br />

Jacinta Allan has been less than<br />

forthcoming with the facts. It is a<br />

classic example of not what you<br />

say, but what you don’t say.<br />

BY ROD BARTON, President VHCA<br />

our members bewildered and<br />

frustrated over their lack of<br />

compliance action.<br />

The TSC has openly supported<br />

illegal ride share operators by<br />

turning a blind eye.<br />

Many people within the taxi<br />

and hire car industry have lost<br />

complete confidence in the ability<br />

of the TSC to be independent<br />

of Government and enforce the<br />

current legislation. Legislation<br />

which we believe they have a<br />

statutory obligation to enforce.<br />

The Andrews Government leaves<br />

thousands of established drivers<br />

and operators financially and<br />

emotionally damaged, many will<br />

not recover.<br />

Jacinta Allan (Labor), Samantha<br />

Dunn (Greens) and Fiona Patton<br />

(Sex Party) have combined to<br />

reduce a popular, well run hire<br />

car industry to nothing more than<br />

a part time ride share provider,<br />

compromising safety, lowering<br />

standards and consumer choice.<br />

All at the expense of the travelling<br />

public.<br />

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<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong><br />

7


TAXI NEWS<br />

CONSPIRACY<br />

TO TAKE<br />

OVER<br />

BY HANS ALTHOFF, Taxi Owner/Operator<br />

As a general rule I do<br />

not prescribe to a<br />

conspiracy theory,<br />

however there<br />

seems to be plenty<br />

of evidence and facts over the last<br />

15 years that could support such<br />

a theory.<br />

Who are or would be<br />

the players in such a<br />

conspiracy?<br />

The Government, the TSC, the<br />

Victorian Taxi Association (VTA)<br />

and the Radio networks all<br />

benefited over the last 15 years by<br />

the systematic destruction of the<br />

Victorian taxi industry.<br />

Contrary to popular belief I do<br />

not include the radio networks as<br />

part of the taxi industry, but a very<br />

important supplier to the industry.<br />

The real taxi industry is made<br />

up of licence holders, operators<br />

and drivers. The real taxi industry<br />

originally included the radio<br />

networks till they were taken<br />

over by big industry players who<br />

started to work for their own<br />

interest, rather than the common<br />

good.<br />

So where did all this start?<br />

I believe that it all started with<br />

some person or a group of people<br />

in Treasury who realised that there<br />

was a lot of money to be made by<br />

the government if they no longer<br />

issued or sold Perpetual Taxi<br />

Licences to the Taxi Industry, but<br />

rather issue yearly licences for a<br />

price.<br />

They decided to test the water by<br />

issuing 600 Peak Service licences,<br />

claiming to help the customer by<br />

putting more taxis on the road in<br />

peak times.<br />

The government made these<br />

yearly licences available only to<br />

drivers who fulfilled certain criteria<br />

and got the drivers on their side<br />

by falsely telling them that they<br />

could be their own boss, when in<br />

fact they became the slaves of the<br />

government.<br />

Any driver who drove the vehicle<br />

by himself, as suggested by the<br />

Government, soon found that he<br />

drove himself to exhaustion, or did<br />

not make a reasonable living.<br />

With the drivers and the public<br />

on the side of the Government<br />

there remained only four more<br />

obstacles namely the radio<br />

networks, the perpetual Taxi<br />

Licence Holders, the Taxi<br />

Operators, and the Victorian Taxi<br />

Association.<br />

The radio networks and<br />

the VTA did a deal with<br />

Government whereby they<br />

would each benefit to the<br />

tune of $3.5 million with<br />

virtually no capital cost.<br />

The radio networks did not<br />

dispatch any more work, but had<br />

to pay a small amount of money<br />

for equipment, however they<br />

charged the same depot fees and<br />

hence added over $3 million to<br />

their profit line. All the government<br />

had to do for their $3.5 million<br />

windfall, was the payment of a<br />

small increase in their wages bill.<br />

It is at this point that the<br />

The VTA abandoned the<br />

Licence holders first then the Operators.<br />

8 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


government went into business<br />

with the radio networks, created a<br />

conflict of interest and abandoned<br />

it responsibilities as a regulator.<br />

This relatively small action by<br />

the government netted the<br />

radio networks till <strong>2017</strong> in<br />

excess of $70 million. So a<br />

very cosy arrangement where<br />

the government and the radio<br />

networks win, and where the voice<br />

of Perpetual Licence Holders, the<br />

Operators and the Drivers are not<br />

even heard and therefore they lose.<br />

Over the last few years a similar<br />

method was used to put more<br />

money into the coffers of the radio<br />

networks and the government.<br />

The Brumby Government sold 200<br />

ten-year licences for $36 million<br />

and issued 320 Wheelchair Taxi<br />

Licences for a yearly fee of around<br />

$11 million per year, which was<br />

later reduced to $7 million.<br />

However we shouldn’t forget the<br />

ex-chairman of the ACCC, Allan<br />

Fels, who managed to release<br />

hundreds more taxis into an<br />

already grossly oversupplied<br />

market. His understanding of the<br />

taxi industry was so poor, that<br />

he did not know the difference<br />

between occupation rate in a taxi<br />

and availability of a taxi.<br />

couple of years they would have<br />

made more than $20 million per<br />

year, but they want more. In fact<br />

the proposed levy of $1 per job<br />

will give them $40 million a year.<br />

In a recent letter from the<br />

government it says<br />

“WHAT YOU NEED TO DO -<br />

Nothing! – it’s business as<br />

usual”<br />

Perpetual Taxi Licence holders<br />

with respect to the proposed<br />

licence changes is an absolute<br />

insult to the intelligence of every<br />

Licence Holder.<br />

Is it business as usual when you<br />

can no longer sell an asset that<br />

you held for many years?<br />

Is it business as usual when your<br />

Need<br />

LEGAL<br />

assistance?<br />

Serving the Taxi Industry<br />

for over 30 years<br />

assets of the business have been<br />

transferred to Big Business?<br />

It has become more and<br />

more evident in more recent<br />

years that the taxi licence<br />

holders and the operators<br />

were no longer represented<br />

by the VTA.<br />

The VTA abandoned the Licence<br />

Holders first, then the Operators.<br />

Now that Cabcharge feels that the<br />

VTA has done the job for them,<br />

they no longer pay any fees to the<br />

VTA, take the VTA CEO into their<br />

fold and congratulate themselves<br />

for a job well done.<br />

It is now absolutely clear that the<br />

Licence Holders can no longer<br />

expect any help from the radio<br />

networks or the VTA.<br />

• Business<br />

• Commercial<br />

• Conveyancing<br />

• Estate Planning<br />

• Family<br />

• Litigation<br />

• Probate<br />

• Taxation<br />

• Superannuation<br />

Since 2002 the Victorian<br />

government has had more than<br />

$100 million income from the taxi<br />

industry, without spending a single<br />

dollar in capital. Over the last<br />

AMS<br />

LAW<br />

Adams Maguire Sier<br />

176 Upper Heidelberg Road, Ivanhoe<br />

Email: amsr@amslaw.com.au | Phone: 9497 2622<br />

Since 2002 Victorian government<br />

has received more than $100 million income from this industry.<br />

<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong><br />

9


VHCA<br />

INDUSTRY<br />

COMMITTEES<br />

BY ANDRE BARUCH, Vice President VHCA<br />

Taxi Services Commission<br />

Services Ride Share<br />

Steering Committee<br />

As representative of the VHCA<br />

I am a member of the Victorian<br />

Government’s Taxi Services<br />

Commission (TSC) led steering<br />

committee. This committee is<br />

tasked with helping to determine,<br />

among other things, how to<br />

implement the new laws that will<br />

eventually allow “Ride Share” to<br />

operate legally in Victoria.<br />

At this point it is worth<br />

remembering that a camel is a<br />

horse that has been designed by a<br />

committee! 1<br />

I can’t help notice the irony that this<br />

committee includes representatives<br />

from the Department of Economic<br />

Development, Jobs,Transport and<br />

Resources (The Dept) and the<br />

TSC (including their legal team).<br />

When you review their previous<br />

track record, the makeup of this<br />

committee does not fill us with<br />

confidence.<br />

Also in attendance were<br />

representatives from State Revenue<br />

Office (SRO), taxi operators and (at<br />

the time of writing) illegal operators<br />

such as Uber and Sheebah.<br />

Nothing like letting the wolves<br />

dictate to the sheep what the rules<br />

will be …<br />

Putting that aside, the Committee<br />

decided to form working groups<br />

talking about four key areas of<br />

interest:<br />

1. Driver Accreditation;<br />

2. Booking Service Providers;<br />

3. Vehicles and<br />

4. Communications.<br />

The good news is that the<br />

TSC recognises that their<br />

communications have not been up<br />

to scratch! Far from it, if you ask<br />

me …<br />

The not so good news is that<br />

as there was so much interest<br />

from most participants in being<br />

in working groups the TSC has<br />

decided to form one working group<br />

10 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


The government is letting<br />

the wolves dictate<br />

to the sheep what the rules will be.<br />

with everyone involved, with a<br />

meeting time (as of 12 July) yet<br />

to be set.<br />

At the last meeting the Steering<br />

Committee was advised of<br />

the now publicised pathways<br />

ONCE legislation has been<br />

passed. At the time of writing<br />

the legislation has still not been<br />

passed by parliament.<br />

Melbourne Airport<br />

Landside Operator’s<br />

Committee<br />

I am also a member of<br />

Melbourne Airport’s Landside<br />

Operators’ Committee.<br />

Melbourne Airport gives us a<br />

quarterly run down on what has<br />

been happening – including all<br />

planned infrastructure works<br />

and the effect the current<br />

roadworks on the freeway are<br />

having on the airport.<br />

There is also a focus on safety,<br />

and safety related incidents.<br />

It is pleasing to note that,<br />

given the huge numbers of<br />

individual movements of<br />

people and vehicles at the<br />

airport, the safety incidents<br />

are ridiculously low. All of us,<br />

including the airport staff, are<br />

to be commended for this – for<br />

our safe driving and awareness<br />

of passengers around us.<br />

I am, of course, keeping a close<br />

eye on the parking plans that<br />

the airport has for Uber, but<br />

at this stage they have yet to<br />

announce anything.<br />

All they are saying is that:-<br />

1. they are aware that VHA<br />

cars offer a premium<br />

service and should retain<br />

their premium parking<br />

place.<br />

2. they will make plans if<br />

and when Ride Sharing is<br />

legalised.<br />

I will keep you all informed of<br />

any changes; both through<br />

<strong>DRIVE</strong> <strong>A2B</strong> and through the<br />

VHCA’s Facebook page.<br />

1 An expression critical of committees<br />

by emphasizing the ineffectiveness of<br />

incorporating too many conflicting opinions<br />

into a single project.<br />

HIRE<br />

CAR &<br />

TAXI<br />

OWNERS<br />

JOIN<br />

VHCA<br />

TODAY<br />

ONLY<br />

$120 pa<br />

You can sit there and complain<br />

about how unfair this<br />

all is .... but what we<br />

know is, at this stage,<br />

you are going to get<br />

100% of NOTHING.<br />

JOIN US and maybe,<br />

just maybe, we will<br />

get a little bit of<br />

something!<br />

<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong><br />

11


RIDE SOURCING<br />

The TWU calls on all<br />

state government to<br />

stop ride-share rip-off of<br />

passengers and drivers.<br />

STOP<br />

INDUSTRY<br />

RIP-OFFS<br />

The Transport Workers’ Union<br />

(TWU) is calling on all State<br />

Governments to protect<br />

passengers and drivers over<br />

arbitrary rate increases and<br />

wage reductions by ride-sharing<br />

platforms such as Uber.<br />

The Union is also seeking<br />

regulation to force transparency<br />

from Uber on how it sets its rates,<br />

following complaints from drivers<br />

and passengers over its secretive<br />

system.<br />

“We cannot stand by while<br />

a system which is gaining a<br />

foothold in our transport network<br />

can increase rates or reduce them<br />

at random. At the moment this<br />

is happening at the whim of tech<br />

giants which are wielding their<br />

power in an entirely opaque way.”<br />

“Governments need to protect<br />

drivers and passengers from<br />

being ripped off,” said TWU<br />

National Secretary Tony Sheldon.<br />

The TWU call follows Ms Jacinta<br />

Allan’s (Victorian Transport<br />

Minister) announcement last<br />

month that it would introduce<br />

legislation to protect passengers<br />

against rate increases associated<br />

with Uber’s price-surging model.<br />

But the TWU also wants to see<br />

protections for drivers, who suffer<br />

when Uber cuts rates, leaving<br />

them earning less, or increases<br />

rates, threatening their livelihoods<br />

by turning customers off.<br />

“Passengers were ripped off in<br />

Melbourne last month when the<br />

train network shut down and in<br />

Sydney during the Lindt café siege<br />

because of Uber’s price-surging”,<br />

said Tony Sheldon.<br />

“Drivers who sign up to Uber<br />

in good faith cannot bank on<br />

an income when the company<br />

can increase or decrease rates<br />

without warning or consultation.<br />

Governments are failing to protect<br />

the public and drivers by not<br />

acting on this,” he added.<br />

Uber has been criticised over<br />

its lack of transparency on<br />

how it sets its rates and the<br />

fact that the gap between what<br />

passengers pay and what drivers<br />

get is widening. A new system<br />

being trialled for “route-pricing”<br />

based on what Uber estimates<br />

passengers are willing to pay, is<br />

also being criticised.<br />

“The on-demand economy<br />

is again in the dock over its<br />

influence on our laws and society.<br />

We already know drivers are being<br />

denied protections such as sick<br />

leave and annual leave and are<br />

subject to arbitrary dismissal<br />

without independent oversight of<br />

industrial tribunals”, Mr Sheldon<br />

continued.<br />

“We also have passengers and<br />

drivers held to ransom over price<br />

gouging when it suits the tech<br />

giants. Our Governments need to<br />

regulate this sector to protect our<br />

society,” Mr Sheldon added.<br />

Governments are failing<br />

to protect the public and drivers by not acting.<br />

12 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


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VTHF<br />

ONE GLITCH<br />

& RIDESHARE<br />

GOES TO TOWN<br />

Middle of July<br />

the Melbourne<br />

transport system<br />

shut down, due to a<br />

malfunction, leaving hundreds<br />

of commuters stranded. This<br />

caused chaos amongst the<br />

travelling public wanting to get<br />

home and left them seeking<br />

alternatives.<br />

Having so many people all<br />

wanting to make an exodus<br />

out of the city made the roads<br />

extremely congested and added<br />

extra time for everyone to get<br />

home. Although the trains were<br />

up and running after a short<br />

period, it took many hours for<br />

the roads to clear.<br />

to where they wanted to go<br />

certainly paid a very handsome<br />

price.<br />

This is a litmus test for things<br />

to come, since our state<br />

government doesn’t have the<br />

foresight to see the peril that<br />

they have placed the public<br />

in. An unregulated and illegal<br />

service had taken it upon<br />

themselves to make a mockery<br />

of the people who use them.<br />

The illegal rideshare model<br />

has shown its modus operandi<br />

well before they are deemed<br />

to operate legally. It has made<br />

its intentions quite clear that<br />

placing the highest price on<br />

peak times of demand is of the<br />

highest priority.<br />

A hard lesson for people who<br />

used this illegal service to learn.<br />

It had left a big hole in their<br />

wallet.<br />

The frustration of the transport<br />

meltdown made a good talking<br />

point in the media, which had a<br />

lot of people angrily complaining<br />

of the price gouging of the illegal<br />

rideshare. Around the world<br />

we have seen and read about<br />

ridesharing using this tactic even<br />

at the most catastrophic events.<br />

This was an opportunity for the<br />

illegal rideshare to gouge the<br />

people they so desperately want<br />

to win over. Many who opted<br />

to use this illegal service to get<br />

14 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


Hands up<br />

if you think the Victorian government should<br />

Buy Back - Buy Fair!<br />

The illegal rideshare also<br />

highlights the incompetence<br />

of government who allow an<br />

unregulated service do what it<br />

likes and how it pleases, and not<br />

value an industry that has shown<br />

more value and service.<br />

The recent joint meeting<br />

of VTHF and VHCA<br />

members last month<br />

saw legal people,<br />

Bronwyn and Hayden, attend the<br />

meeting and give an update on<br />

the legal proceedings on behalf<br />

of the VTHF.<br />

They advised that they have<br />

sent a significant amount of<br />

correspondence to parliament<br />

members and personnel at the<br />

Taxi Services Commission, and<br />

that they have done monumental<br />

amounts of research and<br />

evidence collecting.<br />

They stated that even if the<br />

Commercial Passenger Vehicle<br />

Industry <strong>2017</strong> Bill passes in<br />

<strong>August</strong> - that’s not the end of the<br />

fight. Their primary objective is<br />

to get a better deal on licence<br />

compensation.<br />

It was also mentioned that<br />

concrete evidence was needed<br />

before legal proceedings were<br />

begun. Now that this evidence<br />

is to hand and their portfolio is<br />

almost complete, they will be<br />

moving forward post haste .<br />

A timeline and potential costs<br />

for the legal proceedings will be<br />

advised once the case is fully<br />

determined, put into place and<br />

goals have been set.<br />

As Linda DeMelis said, “We<br />

need to put our trust in these<br />

legal representatives as they are<br />

trained in law and it is the law<br />

that we need help with”.<br />

We all need to unite and unify if<br />

we are to have a win against this<br />

government.<br />

<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong><br />

15


LEGAL NEWS<br />

YOUR FAMILY’S<br />

Future<br />

Property<br />

BY NADAV PRAWER, Partner, Mann Lawyers<br />

Whatever you think of the government’s Commercial Passenger<br />

Industry Bill <strong>2017</strong> and other proposed activities for the hire<br />

car and taxi industries, they represent major change in three<br />

categories:<br />

Firstly, the abolition of personal, transferrable taxi licences as a form of property.<br />

Secondly, the receipt by the registered owners of taxis and hire cars of significant sums<br />

of money, payable by way of ‘industry transition assistance’ payments’ (the ‘Fairness Fund’<br />

has yet to pay out or pledge a single dollar to even the most desperate of taxi families.)<br />

Thirdly, a new form of regulation, in the form of a State Revenue Office registration and<br />

collection of the industry levy.<br />

These three changes represent a<br />

major structural change to the lives<br />

of many.<br />

However, some forward planning<br />

may help reduce the potential<br />

impact of all three changes,<br />

particularly for those for whom<br />

taxi licences represented a primary<br />

income stream.<br />

Whilst the needs of each individual<br />

and family will vary and an industry<br />

publication cannot be a substitute<br />

for targeted legal advice, obtaining<br />

professional advice on each of the<br />

following matters may be worth<br />

doing.<br />

Check your will<br />

For many long-standing taxi<br />

families, the licence may have<br />

been intended to be passed<br />

to a particular descendant or<br />

beneficiary. If this is the case,<br />

the loss of the licence may mean<br />

that one beneficiary will receive<br />

a greatly reduced portion of an<br />

estate. This can give rise to family<br />

disputes, but also a challenge to<br />

a will.<br />

Similarly, if you are forced to, or<br />

are considering, selling assets to<br />

increase income now, you should<br />

consider its effect on your estate<br />

planning.<br />

A good accountant should be<br />

consulted, as well as your lawyer.<br />

As most Australians do not have a<br />

will, this time of change is a good<br />

opportunity to make clear provision<br />

for your children.<br />

16 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


Three changes represent a<br />

major structural change to the<br />

lives of many.<br />

Re-calibrate your<br />

income distributions<br />

The current advice from the<br />

Australian Tax Office is that the<br />

payments from the Victorian<br />

Government will be considered<br />

income. This may effect<br />

entitlements to a range of<br />

government benefits, including<br />

pensions and health care cards,<br />

as well as, of course, triggering<br />

income tax.<br />

If you currently pay child support,<br />

or if you would be liable for child<br />

support except for your income,<br />

the payment may cause a change<br />

in your circumstances and<br />

generate a reporting obligation.<br />

It is important that you engage<br />

with an accountant to plan for<br />

these events. This may involve you<br />

making decisions about short or<br />

long-term investments, reallocating<br />

trust distributions, etc.<br />

Consider if you’re at risk<br />

of being caught out<br />

The change to a levy model will<br />

give government and the tax<br />

office, a window into the activity<br />

undertaken by hire car and taxi<br />

firms.<br />

Those who have been underreporting<br />

income, such as<br />

through Uber or through off-thebooks<br />

work, may find themselves<br />

at risk of audit as the tax<br />

department considers whether<br />

the number of trips performed<br />

correlates to the income you have<br />

reported in the past.<br />

Businesses may wish to consider<br />

checking that their records are<br />

up to date and that they are<br />

prepared for an audit. Again, your<br />

accountant should be involved<br />

early.<br />

Don’t give up hope &<br />

Don’t sign away your<br />

rights<br />

A number of organisations,<br />

including the VHCA, which we<br />

are proud to support, have been<br />

investigating causes of action<br />

which may lead to significant<br />

compensation to the taxi and hire<br />

car industry.<br />

Our view is that prospects of suing<br />

the Victorian Government are<br />

very poor. However, there may be<br />

other avenues to achieving redress<br />

and we hope to announce more<br />

regarding this soon.<br />

In the interim, think very carefully<br />

before signing any government<br />

waiver, selling the entity that owns<br />

your licences or otherwise taking<br />

any steps which would preclude<br />

you from recovering for the<br />

valuable asset being removed from<br />

you.<br />

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<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong><br />

17


RIDE SHARING<br />

UBER<br />

<strong>DRIVE</strong>RS<br />

PAY GST<br />

As we have come to<br />

expect from Uber,<br />

they have managed to<br />

find a loophole within<br />

the ATO regulations<br />

pertaining to GST on digital<br />

products and services as Uber is a<br />

foreign-based company.<br />

But on 1 July <strong>2017</strong> that all<br />

changed. GST is to be imposed on<br />

digital products and services sold<br />

within Australia by resident and<br />

non-resident suppliers.<br />

The ATO states that if a<br />

multinational corporation makes<br />

money in Australia, it’s only fair it<br />

pays tax in Australia.<br />

The Australian government has<br />

introduced new laws to close<br />

loopholes and ensure profits are<br />

taxed here.<br />

This means Australian businesses,<br />

both big and small, can stay competitive<br />

and more money will be<br />

returned to our economy, helping<br />

guarantee the essential services<br />

Australians rely on.<br />

Uber has advised its driverpartners<br />

that those who are<br />

• NOT GST REGISTERED are<br />

considered individual “nonbusiness”<br />

users. As such,<br />

Uber will be required to charge<br />

these driver-partners GST on<br />

their Uber Service Fee.<br />

• GST REGISTERED are<br />

considered “business” users.<br />

As such, Uber will not be<br />

required to charge these<br />

driver-partners GST on their<br />

Uber Service Fee.<br />

Uber is relying upon the driverpartner<br />

ABN and GST registration<br />

details uploaded into the<br />

applicable Uber partner account.<br />

Therefore as of 1 <strong>August</strong> if you<br />

drive for Uber and are<br />

• NOT GST REGISTERED the<br />

Uber Service Fee will be 22%,<br />

and Uber will remit the GST<br />

to the ATO on their driverpartner’s<br />

behalf.<br />

• GST REGISTERED the Uber<br />

Service Fee will remain at<br />

20% and you will have to complete<br />

your own BAS and remit<br />

GST on your Uber income.<br />

The Australian Diverted Profits<br />

Tax and the Multinational Anti-<br />

Avoidance Law, together with the<br />

Tax Avoidance Taskforce, will help<br />

ensure multinational corporations<br />

pay the right amount of tax.<br />

And so Uber will now have to<br />

comply with GST requirements,<br />

just like all other commercial<br />

passenger vehicles - ie taxis and<br />

hire cars.<br />

FWO<br />

UPDATE<br />

Drivers from all over Australia<br />

have come forward and are<br />

taking part in the Fair Work<br />

Ombudsman’s investigation<br />

into Uber’s working<br />

conditions.<br />

All drivers who expressed<br />

interest in this case will be<br />

contact by an FWO inspector<br />

in the near future.<br />

The investigation into Uber is<br />

now well under way.<br />

Participating drivers are<br />

asked to co-operate with<br />

and help the FWO inspectors<br />

reviewing the case. Drivers<br />

will need to provide the<br />

information and evidence that<br />

they seek in a timely manner.<br />

You may be owed a lot<br />

of money in lost wages,<br />

superannuation and/or leave/<br />

sick pay. Stick together,<br />

provide the<br />

required<br />

information<br />

and stand<br />

for your<br />

rights!<br />

18 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


AUTO CARS<br />

WON’T STOP<br />

CONGESTION<br />

20 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


y DANIELLE MUOIO<br />

Self-driving cars might make your future commute a<br />

lot more pleasant, but they won’t eliminate traffic.<br />

Execs like Google cofounder Sergey Brin have touted traffic reduction as<br />

one of the many benefits of having self-driving cars on the road. The idea<br />

is that autonomous cars will eliminate accidents caused by human error,<br />

a major contributor to traffic. But experts say the vehicles’ impact on<br />

traffic will either be minimal or negative.<br />

Lew Fulton, a co-director at UC Davis’<br />

Institute of Transportation Studies (ITP),<br />

told Business Insider that autonomous<br />

vehicles won’t fix congestion woes unless<br />

a pricing system is put in place that<br />

discourages zero-occupancy vehicles.<br />

“We are especially concerned about zerooccupant<br />

vehicles that can happen with<br />

automated vehicles,” Fulton said.<br />

“That scenario is especially plausible with<br />

private ownership of those vehicles and no<br />

limits to what we can do with them.”<br />

For example, many companies are<br />

interested in programming autonomous<br />

cars to run errands or pick up packages,<br />

but these efforts could increase traffic by<br />

multiplying the number of zero-occupant<br />

cars, or “zombie cars,” on the road, Fulton<br />

said.<br />

Massachusetts lawmakers have already<br />

proposed a tax on driverless vehicles to<br />

prevent zombie cars. The bill calls for a<br />

per-mile fee of at least US$0.025 (equals<br />

AU$0.032). Congestion could also worsen<br />

as companies like Lucid Motors explore<br />

designing self-driving vehicles around<br />

comfort, like installing reclining seats.<br />

Consumers may opt to live farther outside<br />

of cities if they can commute in vehicles<br />

that allow them to sleep and relax. But that<br />

sprawl increases the number of people<br />

travelling in and out of cities during rush<br />

hour, Fulton said.<br />

Self-driving cars can still contribute to<br />

congestion even if they operate as part of a<br />

ride-hailing network, like Uber.<br />

Without the cost of a driver, Fulton said<br />

he worries self-driving Ubers or Lyfts will<br />

become so cheap there will be no financial<br />

incentive to opt for car-sharing services<br />

like UberPOOL.<br />

“I think it’s going to take some kind of<br />

pricing system that discourages zerooccupant<br />

vehicles and also makes<br />

penalties for single-occupancy vehicles,”<br />

he said.<br />

Fulton isn’t alone in this line of thinking.<br />

Matthew Turner, an economist at Brown<br />

University, has studied road congestion<br />

and co-authored a 2011 paper titled “The<br />

Fundamental Law of Road Congestion.”<br />

Turner found that vehicle pricing structures<br />

have had the biggest effect on reducing<br />

travel time, more so than increasing public<br />

transit access.<br />

“Maybe autonomous cars will be different<br />

from other capacity expansions, but of the<br />

things we have observed so far, the only<br />

thing that really drives down travel times is<br />

pricing,” Turner told the New York Times.<br />

Some cities have already mobilized to<br />

discourage people from taking cars alone.<br />

States like California and Colorado have<br />

installed high-occupancy toll lanes that<br />

single-occupancy must pay a fee to use.<br />

That fee increases during rush hour.<br />

“We have to figure out systems that<br />

promote pairing,” Fulton said. “It really is a<br />

silver bullet if we can do it.”<br />

<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong> 21


RUMOUR MILL<br />

What<br />

we hear<br />

Are these rumours, fiction or the<br />

truth hidden in plain sight?<br />

We often hear about what the<br />

VHCA and the VTHF associations are<br />

doing, what legal action they are planning.<br />

But what about the VTA? Are they<br />

supporting the Victorian taxi industry<br />

in any way?<br />

Cabcharge is in merger talks<br />

with Combined Communications<br />

Network (CCN) - Australia’s largest<br />

taxi booking and dispatch service<br />

provider.<br />

There is a new<br />

Victorian state political<br />

party being created -<br />

TRANSPORT MATTERS PARTY.<br />

You can join other like minded<br />

people and be represented<br />

effectively in state parliament<br />

decisions regarding<br />

Victorian transport<br />

issues.<br />

Taxi<br />

Services<br />

Commission is<br />

turning a blind<br />

eye to the fact that<br />

13CABS are breaking<br />

the law.<br />

13Cabs are using<br />

metro cars for<br />

country jobs!<br />

13Cabs are using<br />

unlicensed cars<br />

as taxis!<br />

Due to lack of work, the Radio<br />

Room at Silver Top Taxis keeps shrinking<br />

every month.<br />

If you are or know of an Uber driver/partner, by<br />

not providing your ABN to Uber they will have to pay the GST on<br />

your behalf - thus treating you like an employee. Wonder if leave<br />

entitlements come with this too?<br />

MPs continue to<br />

close their doors to locals<br />

and ignore messages from<br />

locals who want to discuss<br />

their situation in the current<br />

Victoria taxi and hire car<br />

industry mess.<br />

13CABS are sending<br />

metro licensed taxis into<br />

country areas to serve the DVA<br />

accounts instead of forwarding these<br />

jobs to the closest local cab depot,<br />

thereby “stealing” jobs from<br />

the country depots.<br />

BE PART OF THE STORY<br />

Melbourne<br />

Airport will soon be<br />

using eTAGS instead of<br />

Swipe Cards for access<br />

to the taxi holiding<br />

system.<br />

Join the Conversation<br />

<strong>DRIVE</strong> <strong>A2B</strong> loves hearing what you think<br />

about the magazine, your taxi owner or driver,<br />

your network service provider, or just taxis in<br />

general.<br />

Email <strong>DRIVE</strong> <strong>A2B</strong> at info@drivea2b.com.au or<br />

sms <strong>DRIVE</strong> <strong>A2B</strong> at 0400 137 866.<br />

Remember to include your name, address<br />

and phone number for authentication.<br />

22 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


IN THE AIR<br />

Volocopter<br />

by ANDREW J. HAWKINS<br />

Volocopter, a German aviation<br />

startup formerly known as<br />

E-volo, just announced that it<br />

inked a deal with Dubai’s Road<br />

and Transport Authority (RTA)<br />

to begin testing its 18-rotor<br />

multicopters as part of a flying<br />

taxi service later this year.<br />

The news further cements<br />

the city’s reputation as a<br />

testing ground for some of the<br />

transportation world’s more<br />

futuristic and outlandish ideas.<br />

Volocopter’s Dubai experiment<br />

will start in the fourth quarter<br />

of <strong>2017</strong>, and is scheduled<br />

to last five years under the<br />

agreement with the RTA, said<br />

Alexander Zosel, co-founder of<br />

Volocopter, in a statement.<br />

“We are very grateful and<br />

proud that the RTA has<br />

selected us as their partner<br />

after rigorous testing,” he<br />

added, citing his company’s<br />

“stringent safety standards”<br />

as among the reasons his<br />

company was selected.<br />

Volocopter’s prototype VC200<br />

took its first crewed flight last<br />

year. And at Europe’s largest<br />

general aviation trade fair<br />

earlier this year, the company<br />

revealed its first production<br />

model: the 2X.<br />

It has a maximum range of 17<br />

miles (27.3 kms) when flying<br />

at a speed of 43 mph (69 kph).<br />

Its maximum flight time is 27<br />

minutes at an optimal cruise<br />

speed of 31 mph (50 kph).<br />

But if range were no concern,<br />

the 2X can fly at a maximum<br />

speed of 62 mph (100 kph).<br />

Volocopter won’t be the only<br />

flying taxi service buzzing<br />

through Dubai’s airspace.<br />

RTA also recently struck a<br />

deal with the Chinese drone<br />

company Ehang to test its<br />

single-person quadcopter as a<br />

transit alternative.<br />

Uber is also in talks with<br />

the emirate city to publicly<br />

demonstrate its own flying taxi<br />

service in 2020.<br />

And if flying through the air<br />

in an autonomous drone isn’t<br />

your bag, perhaps you’d be<br />

more interested in tube-based<br />

travel: Dubai is working with<br />

LA-based startup Hyperloop<br />

One to build the world’s first<br />

passenger-ready hyperloop.<br />

<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong><br />

23


TRANSPORT MATTERS<br />

Player in<br />

politics<br />

Everyone has a right to be heard<br />

and you deserve to be heard.<br />

Rod Barton and Andre Baruch, the<br />

President and Vice President of<br />

the Victorian Hire Car Association,<br />

announced on 16 July <strong>2017</strong> at a<br />

meeting of taxi and hire car drivers,<br />

operators and licence holders, that<br />

they have started the process of<br />

forming a new political party – the<br />

Transport Matters Party (TMP).<br />

Rod Barton said, “We have chosen<br />

to take this action after the<br />

devastating way our members and<br />

colleagues have been treated by the<br />

Andrews Labor Government”.<br />

“It is clear not only to us, our<br />

families, friends and customers but<br />

also the Victorian public, that this is<br />

a Government that does not like to<br />

consult.”<br />

“The cancellation of privately<br />

owned property without appropriate<br />

compensation is unprecedented<br />

in Victoria. The Andrews<br />

Government arrogantly ignored<br />

the recommendations made by<br />

the Economy and Infrastructure<br />

Committee, choosing to reject<br />

compromise and fairness,” said Mr<br />

Barton.<br />

“They partnered with Samantha<br />

Dunn (Greens) and Fiona Patton<br />

(Sex Party) to pass flawed<br />

legislation that will cause much<br />

harm to thousands of Victorians,”<br />

he continued.<br />

The TMP will participate in the 2018<br />

Victorian State Election with one<br />

clear objective - to give back a voice<br />

to local communities.<br />

Transport impacts all aspects of<br />

our lives; including those who work<br />

in public and private transport<br />

networks, how we get to work, how<br />

our kids go to school, how we go to<br />

football and how we socialise.<br />

“Transport affects the quality of<br />

our lives, it shapes our cities and<br />

our communities. TRANSPORT<br />

MATTERS. You have a right, and<br />

you deserve to be heard,” added Mr<br />

Barton.<br />

“We are working on the regulatory<br />

and communication requirements<br />

to set up a party. We look forward<br />

to working with you to achieve<br />

better and fairer outcomes,” he<br />

said.<br />

Come join us!<br />

Please contact Andre Baruch<br />

for an application form,<br />

complete the form and return<br />

via email or mail. It’s that<br />

easy!<br />

MEMBERSHIP ONLY<br />

$<br />

20<br />

E: andrebaruch.tmp@gmail.com T: 0417 898 698 PO Box 1046 Elsternwick Vic 3185<br />

ABN: 64 918 392 617<br />

24 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


PROUDLY SUPPORTING THE VICTORIAN HIRE CAR INDUSTRY<br />

ofcial sponsor of<br />

For all HIRE CAR and TAXI related legal enquiries<br />

contact Nadav Prawer, Partner, Mann Lawyers<br />

T: 1300 557 564<br />

F: 1300 557 554<br />

E: nadav@mannlawyers.com.au


HAVE<br />

YOUR<br />

SAY<br />

Send your thoughts to us!<br />

Send your email (info@<strong>DRIVE</strong><strong>A2B</strong>.com.au) or<br />

sms (0400 137 866) to us and we shall print<br />

it here - where you can HAVE YOUR SAY!<br />

Federal and State MPs don’t<br />

hold to a code of conduct<br />

by J Glazebrook<br />

Fairfax media recently reported<br />

that most Federal MPs don’t<br />

support a code of conduct that<br />

sets ethical standards for our<br />

elected “representatives”.<br />

If you think this is only relevant<br />

for Federal MPs please think<br />

again.<br />

Former judge and corruption<br />

fighter, Tony Fitzgerald, joined<br />

with Australia Institute’s think<br />

tank and surveyed every federal<br />

politician on their values as<br />

part of a plan to clean up<br />

Canberra. But only 53 of the<br />

226 signed up to the “Fitzgerald<br />

Principles”, 36 wouldn’t<br />

commit and 137 did not reply.<br />

“The refusal of a majority of<br />

politicians to commit publicly<br />

to normal standards of<br />

behaviour puts the need for<br />

an effective anti-corruption<br />

commission beyond doubt,” Mr<br />

Fitzgerald said.<br />

“The major parties surely<br />

realise that the public<br />

wants politicians to behave<br />

honourably and that the<br />

scandals which are causing<br />

Australians to lose faith in<br />

democracy involve their<br />

members.”<br />

Currently federal Ministers are<br />

required to uphold a Statement<br />

of Ministerial Standards that<br />

states “the highest standards<br />

of integrity and propriety”, but<br />

no code of conduct exists for<br />

other federal or state MPs.<br />

I have been told by several<br />

State MPs that ethics has<br />

nothing to do with their job!<br />

That ethics is something<br />

only for agencies outside the<br />

Victorian Parliament, such as<br />

the state’s Police.<br />

But is this another act of<br />

hypocrisy. Victorian councillors<br />

are bound by a code of<br />

conduct, why not our Federal<br />

and State MPs?<br />

Could it be because they will<br />

then be bound by principles<br />

that require them to tell the<br />

truth, to treat all citizens<br />

equally, and not spend money<br />

except in the public interest or<br />

use information and taxpayer’s<br />

money for personal benefit?<br />

Licences<br />

granted vs<br />

transferred<br />

by K Muking<br />

In terms of our licences,<br />

there’s no real difference<br />

between licences granted<br />

and licences transferred<br />

under s149 of the<br />

Transport Act.<br />

What is different is the<br />

manner in which they’re<br />

acquired: on one hand,<br />

government grants a<br />

licence, on the other,<br />

government authorises<br />

the sale of the licence it<br />

has previously granted to<br />

someone else.<br />

In terms of the latter,<br />

when the TSC authorises<br />

the transfer, it has a<br />

very limited scope of<br />

consideration.<br />

In our situation, the<br />

government isn’t<br />

proposing to acquire<br />

licences, but is proposing<br />

to do away with them by<br />

force of statute.<br />

26 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


TSC not committed to<br />

cleaning up industry<br />

by Sia<br />

I never really say much but felt I should this time.<br />

You recently ran an article on various coloured cars<br />

operating possibly as taxis. The most interesting<br />

thing is the TAXI SERVICES COMMISSION response.<br />

Oh how times have changed.<br />

In 2012 the General Manager of the Victorian Taxi<br />

Directorate, Marnie Williams, wrote a response to a<br />

friend of mine who had complained of many illegal<br />

cars working at the airport.<br />

I shall quote in part what she stated:<br />

“I can assure you that the information you have<br />

provided to me in recent times regarding your<br />

observations of vehicles operating illegally has<br />

been and/or is in the process of being followed<br />

up.................... We’d be happy to provide you some<br />

high level feedback on this compliance operation at<br />

its conclusion. We can give you a summary of what<br />

enforcement action was taken as part of the overall<br />

operation....”<br />

In <strong>2017</strong> it looks like the new broom called the TSC is<br />

not very committed to cleaning up the issue at all as<br />

shown by your article.<br />

By the way - great magazine and maybe an article or<br />

two from interstate and a joke every now and then.<br />

Public awareness<br />

campaign needed<br />

by F Stewart<br />

With regards to last month’s train system<br />

debacle, Minister Allan is reported as saying<br />

“I think their [Uber] behaviour exposed their<br />

approach to the way they treat people who<br />

use their services. Taking advantage of<br />

people in a difficult circumstance is not a<br />

way to run the business.”<br />

But this is exactly how Uber works. When<br />

the Uber app surged by up to 3.6 times the<br />

regular rate, the public should have wised up<br />

and taken a taxi or booked a hire car - these<br />

are certainly cheaper options when Uber is<br />

surge pricing.<br />

Perhaps what we need is for some<br />

marketing to be done to advise the public<br />

that we, too, have apps that they can book<br />

their taxi or hire car, watch the screen of<br />

their mobile phone, iPad, etc. and see the<br />

vehicle approach.<br />

It sure would give us more business and<br />

cost the public less in these surge pricing<br />

times. Why is neither 13CABS or Silver Top<br />

Taxis, given they are the biggest depots<br />

in Melbourne, taking on this marketing<br />

campaign? What have they got to lose?<br />

Industry IS a TOTAL MESS<br />

Very big congrats on the Drive<strong>A2B</strong> publication! This<br />

will cheer the Taxi Owners of Victoria up, so keep up<br />

the good work!<br />

Hon Jeff Kennett AC, in his recount of his experience<br />

with both the Taxi Industry and the Governments,<br />

led by Ted Ballieu and later Premier Andrews, by<br />

their actions showed that neither do they, or their<br />

advisors, understand nor were they willing to learn<br />

or consequently advise their respective Premiers,<br />

by John Bowe, ATIA ex-President<br />

that the path they were on was unfair, unwise and<br />

without one scintilla of sympathy for the people<br />

whose lives were being devastated .<br />

I believe that Jeff is totally correct in saying that the<br />

INDUSTRY IS A TOTAL MESS. My view is that the<br />

successive governments have no shame with regard<br />

to fellow Victorians who, by their collective efforts,<br />

have provided the necessary support to the State’s<br />

transport system for many, many years.<br />

<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong><br />

27


Melb Airport<br />

CHANGES<br />

TO ACCESS<br />

FEES AT<br />

MELBOURNE<br />

AIRPORT<br />

Melbourne Airport will introduce a<br />

new e-TAG taxi operating system<br />

going live on 26 September<br />

<strong>2017</strong> giving drivers faster, more<br />

convenient access into the airport.<br />

The e-TAG system will replace the<br />

current swipe card process, with<br />

CityLink managing all payment<br />

matters. To ensure drivers can<br />

continue to access the airport’s<br />

holding yards and taxi ranks,<br />

drivers are required to have an<br />

up-to-date CityLink account with a<br />

valid e-TAG prior to 26 September.<br />

The upgrade will optimise traffic<br />

flow inside the airport through<br />

an automated process. Licence<br />

plate recognition technology<br />

will recognise each taxi, while<br />

the Head of Rank will have more<br />

visual control throughout the road<br />

network.<br />

As part of the upgrade, electronic<br />

signage will be installed outside<br />

the Primary Holding Area to alert<br />

drivers to any accidents, alternate<br />

routes and emergency messages.<br />

This will reduce congestion inside<br />

the airport and improve traffic<br />

flow during peak travel times.<br />

Melbourne Airport’s access fee of<br />

$3.58 will remain and payments<br />

will still be made upon exit of the<br />

Primary Holding Area.<br />

Melbourne Airport is confirming<br />

the process for the repayment<br />

of funds left on swipe cards and<br />

will update drivers before the new<br />

system goes live.<br />

KEEP UP TO DATE<br />

via Melbourne Airport’s website<br />

www.melbourneairport.com.au/for-business/commercial-vehicles/<br />

taxi-management-system<br />

28 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


Trade Directory<br />

advertise<br />

HERE<br />

Only $215 for<br />

your business<br />

card advert<br />

Contact Toni Peters<br />

P: 0400 137 866<br />

E: tonipeters@drivea2b.com.au<br />

Metropolitan Taxi Club<br />

TAXI<br />

COVER<br />

PROTECTION<br />

PHONE 9388 0722<br />

360 BRUNSWICK ROAD, BRUNSWICK<br />

<strong>DRIVE</strong>RS, OPERATORS, LICENCE HOLDERS<br />

of Victorian Taxis or Hire Cars<br />

UNITE<br />

WITH US<br />

TODAY<br />

FOR MORE INFORMATION EMAIL<br />

vthfamilies@gmail.com<br />

The Victorian Taxi & Hire Car Families<br />

Visit and have a chat with us at:<br />

1st Floor, 129 Roden Street, West Melbourne<br />

(above Embassy Cafe)<br />

Auto<br />

Car Wash<br />

at Melbourne Airport Unigas<br />

Melrose Drive, Tullamarine<br />

FREE & GET A<br />

FREE<br />

HOT DRINK<br />

HOT DRINK<br />

with every auto car wash<br />

available at Melrose Lounge. Collect your<br />

voucher from the Unigas office.<br />

<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong><br />

29


Road Safety<br />

ROAD<br />

RULES<br />

HAVE<br />

CHANGED<br />

effective 1 July <strong>2017</strong><br />

Use of mobile phones<br />

(bicycles, horse riders, golf<br />

cart, etc)<br />

Riders of a bicycle, a person<br />

travelling in or on a wheeled<br />

recreational device, or the driver of<br />

a vehicle that is not a motor vehicle<br />

now have the same restrictions on<br />

use of mobile phones as for full<br />

licence holders including fines. No<br />

demerit points apply.<br />

Bus lanes<br />

Riding a bicycle and driving a coach<br />

in bus lane (unless otherwise<br />

signed) is now permitted. A coach<br />

is defined as a motor vehicle used<br />

to convey passengers for hire or<br />

reward or in the course of trade or<br />

business which is greater than 9•5<br />

metres in length (excluding any<br />

trailer attached to it).<br />

Giving way when turning at<br />

an intersection with lights<br />

Motorists must now give way to<br />

cyclists riding across crossings at a<br />

green bicycle crossing light.<br />

Police or other emergency<br />

vehicles -<br />

with lights and sirens on<br />

If a Police or other emergency<br />

vehicle has its red or blue lights<br />

flashing or its siren on, you must:<br />

• get out of its way<br />

• give way and stop if necessary,<br />

even if you have a green traffic<br />

light<br />

30 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


SLOW<br />

DOWN<br />

40<br />

Drivers must safely slow<br />

to 40 km/h when passing<br />

an emergency vehicle with<br />

flashing lights or sirens<br />

sounding.<br />

SLOW DOWN for these vehicles .....<br />

• Police<br />

• Ambulance Victoria<br />

• Metropolitan Fire Brigade<br />

• VicRoads Transport Safety<br />

• Taxi enforcement<br />

• Country Fire Authority<br />

• Forest Fire Management Victoria<br />

• State Emergency Service<br />

You must also stop if twin red lights<br />

are flashing on a road (eg outside<br />

a fire or ambulance station). You<br />

can start driving again once the<br />

lights have stopped flashing and the<br />

road is clear of emergency or other<br />

vehicles.<br />

In emergencies, Police and other<br />

emergency vehicles are not required<br />

to follow the road rules.<br />

Passing Police or other<br />

emergency vehicles -<br />

that are stopped with<br />

blue and red or magenta<br />

flashing lights<br />

Motorists must slow down to a<br />

speed not exceeding 40 km/h, that<br />

would enable them to stop safely if<br />

necessary when approaching and<br />

passing enforcement, emergency or<br />

escort vehicles that are stationary<br />

or moving slowly (less than<br />

10km/h)*, and have either:<br />

• red and blue flashing lights<br />

• magenta (purple/pink) flashing<br />

lights - Transport Safety<br />

Services<br />

• an alarm sounding<br />

You must not increase your speed<br />

until a safe distance from the<br />

scene. A ‘safe distance’ has not<br />

been explicitly defined in the road<br />

rule because every incident will<br />

differ in some way.<br />

For example, a fire truck may be<br />

stationed by the roadside with<br />

flashing lights but the fire fighters<br />

may be managing a fire further up<br />

the road. In this instance, drivers<br />

should not increase their speed until<br />

they are fully past all emergency<br />

personnel.<br />

In contrast, a roadside vehicle<br />

intercept by Victoria Police will<br />

require drivers to slow down and<br />

travel at 40 km/h for a much shorter<br />

distance.<br />

The new rule means improved<br />

safety for emergency and<br />

enforcement workers who are<br />

performing work on the road or<br />

roadside, as well as others who are<br />

present at the scene.<br />

The infringement penalty for<br />

breaching the new road rule is<br />

$272.05, with the maximum court<br />

penalty of $777.30. No demerit<br />

points will apply.<br />

<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong> 31


Victoria<br />

These statistical figures<br />

are as at 30 June <strong>2017</strong><br />

Industry<br />

Statistics<br />

These figures are<br />

updated and published<br />

on the Taxi Services<br />

Commission website<br />

Taxi Licences<br />

Zone<br />

Licence<br />

type<br />

# of<br />

licences<br />

30/6/16<br />

# of<br />

licences<br />

30/6/17<br />

Changes<br />

since<br />

30/6/16<br />

Metro Conventional 4,217 4,170 -47<br />

WAT 443 447 4<br />

Total 4,660 4,617 -43<br />

Urban Conventional 420 418 -2<br />

WAT 85 80 -5<br />

Total 505 498 -7<br />

Regional Conventional 264 275 11<br />

WAT 72 75 3<br />

Assignments<br />

Active in June <strong>2017</strong> 131<br />

Fee per month (metro) $1,500<br />

Number of drivers<br />

Active drivers 16,758<br />

(drivers who have recorded at<br />

least one shift last year)<br />

Accredited drivers 58,084<br />

(taxi, hire car & bus)<br />

Compliance<br />

outcomes<br />

Vehicle inspections 405<br />

Rectification notices 67<br />

Infringement notices 30<br />

Regulation 20 notice 32<br />

Official written warning notices 18<br />

Total 336 350 14<br />

Country Conventional 127 129 2<br />

WAT 35 35 0<br />

Total 162 164 2<br />

Totals Conventional 5,028 4,987 -36<br />

Area<br />

WAT 635 637 2<br />

Total 5,663 5,629 -34<br />

Hire Car Licences<br />

# of<br />

licences<br />

30/6/16<br />

# of<br />

licences<br />

30/6/17<br />

Changes<br />

since<br />

30/6/16<br />

Metropolitan 1,136 1,140 4<br />

Country 63 64 1<br />

Special Purpose Vehicles 966 980 14<br />

Restricted 610 633 123<br />

Totals 2,775 2,817 142<br />

32 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


Major<br />

Events<br />

Showcase of Melbourne’s<br />

upcoming major events.<br />

Melbourne<br />

International<br />

Film Festival<br />

3 - 20 <strong>August</strong><br />

Forum Theatre, Melbourne<br />

The Melbourne International Film Festival<br />

(MIFF) showcases the best in current<br />

cinema from around the world, as well as<br />

retrospectives, tributes and discussion<br />

programs. MIFF is also Australia’s largest<br />

showcase of new Australian cinema, and the<br />

country’s most vocal champion of emerging<br />

and established local film-making talent.<br />

Melbourne Writer’s<br />

Festival<br />

25 <strong>August</strong> - 3 September<br />

Federation Square<br />

The Festival connects readers, writers and<br />

thinkers in a winter celebration ‘for everyone<br />

who reads’. It brings together hundreds of<br />

the best writers from Australia and around<br />

the world, to take part in storytelling,<br />

conversation, debate, live performance, music<br />

and art events for readers of all ages.<br />

Supersense:<br />

Festival of the Ecstatic<br />

18 - 20 <strong>August</strong><br />

at Arts Centre Melbourne<br />

Created in 2015 by Arts Centre Melbourne,<br />

Supersense brings together a program of<br />

internationally revered artists and performers<br />

exploring contemporary and traditional<br />

perspectives on ecstatic experience across music,<br />

dance, film, visual art and design.<br />

The festival features an extraordinary exclusive<br />

program of legendary international artists<br />

and music pioneers exploring the sublime and<br />

supernatural.<br />

<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong><br />

<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong> 33


Health<br />

KEEPING<br />

WARM<br />

More people die from the cold in<br />

Australia than in Sweden<br />

by INES GRUBER and CHRIS BARNES<br />

Research from medical journal<br />

The Lancet, revealed that the<br />

cold contributed to about 3.7%<br />

of deaths in Sweden, but 6.7%<br />

(one in 15 deaths) in Australia.<br />

So how can relatively mild<br />

Australian winters result in<br />

more deaths than the belowzeros<br />

in Scandinavia? It seems<br />

that constant exposure to<br />

low temperatures increases<br />

not only blood pressure, but<br />

the risk of cardiovascular and<br />

respiratory diseases, as our<br />

heart and lungs struggle to<br />

warm us up. It’s an important<br />

reminder that keeping your<br />

home warm in winter is not<br />

just for comfort but is for your<br />

health’s sake too.<br />

Swedish homes are better<br />

designed to keep in the heat<br />

and have a cosy average<br />

temperature of 23 degrees,<br />

compared to the below 18<br />

degrees you can find in winter<br />

in an Australian weatherboard<br />

or Queenslander-style house.<br />

If you want to feel warm at home<br />

long term and also save money<br />

you need a plan that goes beyond<br />

beanies and ugg boots. Here are<br />

some practical solutions to beat<br />

the winter chill:<br />

Insulate<br />

It is the best way to keep the heat<br />

in winter in, and out in summer.<br />

Close up any rooms<br />

you don’t use and turn off the<br />

heating there.<br />

Seal up gaps and<br />

cracks<br />

If you add up all the cracks and<br />

gaps in an average home, it would<br />

be the equivalent of having a 1<br />

metre by 1.5 metre window open<br />

all the time. They can account for<br />

up to 15-20% of heat loss.<br />

Seal windows and use<br />

curtains<br />

That will not only help you to<br />

keep warm in winter, but cool in<br />

summer. Up to 40% of our heating<br />

energy can be lost and up to 87%<br />

of the heat in our homes is gained<br />

through the windows.<br />

Look for possible<br />

draught culprits<br />

Not only windows, but doors can<br />

be an issue. If you’re just heating<br />

one room or living area, close its<br />

doors and windows to keep in the<br />

heat. A simple door snake or a<br />

rolled up towel can also help stop<br />

any draughts.<br />

Cover the floor with<br />

rugs<br />

They act as insulation between<br />

your feet and the cold, hard floor.<br />

Reverse ceiling fans<br />

Most models have a reverse<br />

switch. It turns the blades anticlockwise<br />

and pushes the warm<br />

air from your heating system<br />

from the ceiling (remember,<br />

warm air rises) back down.<br />

Maintain your heaters<br />

Get them serviced professionally<br />

every few years to keep them<br />

running more efficiently.<br />

34 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


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<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong><br />

35


Overseas News<br />

RUSSIA<br />

by ERIC AUCHARD AND ANASTASIA TETEREVLEVA<br />

Uber and Yandex, the<br />

“Google of Russia”,<br />

have agreed to<br />

combine their Russian ridesharing<br />

businesses, with<br />

Yandex the leading partner<br />

in a deal that extends to five<br />

nearby markets.<br />

“With this deal Yandex<br />

eliminates an aggressive<br />

competitor which, in<br />

the long run, will lead to<br />

improved monetization and<br />

profitability,” said Sergey<br />

Libin, an analyst with<br />

Raiffeisen Bank in Moscow.<br />

“It’s a good deal.”<br />

Uber has agreed to invest<br />

US$225 million (AU$285<br />

million) while Yandex will<br />

contribute US$100 million<br />

(AU$127 million )into a new<br />

joint company in which<br />

Yandex will own 59.3 % and<br />

employees will have a 4.1 %.<br />

In a joint statement, Yandex<br />

and Uber said they would<br />

join forces in Russia,<br />

Armenia, Azerbaijan,<br />

Belarus, Georgia and<br />

Kazakhstan to create a new<br />

company operating in 127<br />

cities, in a deal expected to<br />

close in the fourth quarter.<br />

Yandex Taxi Chief Executive<br />

Tigran Khudaverdyan will<br />

become the CEO of the<br />

combined business and<br />

Yandex will consolidate the<br />

new company’s results in<br />

its financial statements.<br />

Yandex will hold four board<br />

seats, with Uber holding<br />

three, they said.<br />

“There is ride-sharing<br />

and food delivery and<br />

beyond that there are also<br />

numerous opportunities<br />

in logistics that we will<br />

explore,” Yandex Chief<br />

Financial Officer Greg<br />

Abovsky said on an investor<br />

call. Abovsky added the<br />

combined company could<br />

be spun off with a separate<br />

stock listing in a few years.<br />

Uber said the merger<br />

did not imply a strategy<br />

of further retrenchment<br />

elsewhere. Indeed, financial<br />

terms of the deal make it a<br />

lucrative one, it said.<br />

Yandex and Uber compete<br />

in Russia with rivals<br />

including Fasten/Rutaxi,<br />

Maxim and Gett, the Israeli<br />

startup backed by German<br />

automaker Volkswagen.<br />

36 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


LONDON<br />

by AMIE TSANG<br />

Uber suffered a blow to its<br />

expansion plans in Europe<br />

last month after a senior<br />

adviser to the region’s highest<br />

court said that the ride-hailing<br />

service should have to abide<br />

by tough rules governing taxi<br />

services.<br />

The recommendation, a<br />

nonbinding opinion by an<br />

advocate general for the Court of<br />

Justice of the European Union,<br />

adds to an array of challenges<br />

that Uber is facing worldwide.<br />

This year alone, the company<br />

has grappled with a sexual<br />

harassment scandal and the<br />

resignation last month of its chief<br />

executive, Travis Kalanick.<br />

The case before the court<br />

hinged on whether Uber should<br />

be treated as a taxi service<br />

in France, and therefore be<br />

subject to rigorous safety and<br />

employment rules, or as a digital<br />

platform that merely connected<br />

independent drivers with<br />

passengers.<br />

The French authorities brought<br />

criminal proceedings last year<br />

against the ride-hailing service for<br />

infringing a law that required any<br />

vehicle carrying passengers for a<br />

fee to be licensed as a taxi service<br />

and to have appropriate insurance.<br />

Uber had argued that the law<br />

was also a “technical regulation”<br />

over digital services. That being<br />

the case, the company said,<br />

the French authorities were<br />

required to notify the European<br />

Commission, the executive arm<br />

of the European Union, before<br />

adopting the legislation. Because<br />

France did not do so, Uber<br />

contended, the law could not be<br />

enforced.<br />

The senior adviser, Maciej<br />

Szpunar, an advocate general<br />

of the court, recommended<br />

on Tuesday that Uber was<br />

effectively a taxi service. He<br />

wrote that France could ban<br />

certain types of transportation<br />

services it deemed illegal,<br />

including Uber’s low-cost service<br />

UberPOP, without having to notify<br />

the European Commission.<br />

“We have seen today’s statement<br />

and await the final ruling later<br />

this year,” an Uber spokeswoman<br />

said in a statement. She said<br />

that the company had stopped<br />

offering the services in question,<br />

and that it now worked only with<br />

professionally licensed drivers in<br />

France.<br />

The latest recommendation<br />

came less than two months after<br />

Mr. Szpunar delivered a similar<br />

opinion to the court, arguing that<br />

Uber should have to comply with<br />

rules governing transportation<br />

companies. A final ruling in<br />

that case is expected by late<br />

summer, and a decision related<br />

to Tuesday’s case is due by the<br />

end of the year.<br />

The court typically follows the<br />

recommendations of its senior<br />

advisers, but it could still rule in<br />

the company’s favour.<br />

“The two ways Uber sold itself<br />

— as a digital company and as<br />

a ride-sharing service — don’t<br />

stand up, according to this legal<br />

opinion,” said André Spicer, a<br />

professor of organisational<br />

behaviour at the Cass Business<br />

School at City University in<br />

London.<br />

When companies like Uber and<br />

Airbnb, the short-term rental<br />

company, set up, he said, “They<br />

skirted around national laws,<br />

and that was what made them<br />

competitive and cheap.” He<br />

added, “Many national regulators<br />

are beginning to chip away at<br />

that.”<br />

JAPAN<br />

A year ago Uber sold its Chinese business to Didi Chuxing in return for a<br />

17.5% stake in Didi and at the time this made Didi valued at $35 billion.<br />

Last month Didi Chuxing was valued at $50 billion. Therefore the paper value<br />

of Uber’s stake in Didi has risen from $6.1 billion to around $8 billion.<br />

<strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong><br />

37


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38 <strong>DRIVE</strong> <strong>A2B</strong> magazine · <strong>August</strong> <strong>2017</strong>


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