Over the years, Uber has been no stranger to legal wrangling with disgruntled parties. Earlier this year, the company has found itself in court with Canadian taxi drivers seeking damages for creating a marketplace for allegedly illegal transportation. As recently as September, Uber had lost an initial court battle in California with three of its drivers over direct employment and a potential class-action lawsuit.
However you interpret the company's situation, Uber has gained a significant amount of free publicity generated by the seemingly regular legal challenges lodged against it around the world. Today, Uber finds itself involved in another legal situation but of a more welcome kind.
From midnight Friday 18/12/2015, the UberX ride-sharing service will become a legal operation after the New South Wales Government Cabinet gave its approval in a meeting earlier today. In doing so, cabinet also repealed fifty regulations covering taxi and hire car services with immediate effect.
As part of the industry shakeup, AU$250 million in compensation will be made available to perpetual taxi plate holders as well as owners of recently purchased plates. UberX drivers will also be required to pay for a license, successfully pass criminal background checks in addition to vehicle safety checks conducted on a regular basis.
Given these changes, Transport Minister Andrew Constance expected a reduction in all fares as a result of the changes and said that "it's time for industry and government to move the same way."
New South Wales will become the second jurisdiction in Australia to legalize UberX after the Australia Capital Territory did so in October of this year.
Source: Daily Telegraph