Difficulties for the start-up of the Uber passenger service have prompted an official review of New Zealand's regulations, with a strong hint from the minister responsible that the review will make life easier for the new service at the expense of traditional cabs.
Announcing the review yesterday, Associate Transport Minister Craig Foss said the Government was a strong supporter of innovation, and it wanted all New Zealanders and businesses to enjoy the benefits of new technology.
"We aim to ensure New Zealand's regulatory environment is fit for purpose and flexible enough to accommodate new technologies."
With lower charges and available through an app, Uber is thought to be taking patronage from taxi firms as well as attracting customers who wouldn't normally take cabs.
At the heart of the issue is whether Uber is a legitimate private hire service company or a taxi firm which is subject to many more regulations.
The Uber company has met resistance from traditional cab firms all over the world.
It puts passengers in touch with licensed drivers directly through an app, an estimated fare is given at the start of a journey, and passengers can give the individual Uber driver a public rating at the end of the journey.
Uber does not charge extra for the use of eftpos or payment by credit as most taxi firms do, and fares can be split among passengers.
Because it estimates the hire fare before the journey, it operates as a private care hire service as distinct from a metered taxi company.
But one Uber driver in Auckland was recently stopped by the police, its passengers ejected and the driver accused of using his smartphone to measure the journey.
Uber has complained to the Independent Police Conduct Authority.
A statement this week on the company website said the "partner", as they call drivers, who was accused of using a smartphone as a taxi meter, would contest the fine in court.
The website says Uber's basic fare in Auckland is $1.50, plus 50c a minute, or $1.45 a kilometre, and the minimum fare is $6.
The basic fare on an extra large vehicle is $3.50, plus 60c a minute or $2.30 a kilometre. The minimum fare is $8.
"Our technology has been developed to ensure people clearly know our pricing at the time of booking, get accurate fare estimates before they ride," the company said.
It said people were being treated like criminals because the fare quoted might have said $13 to $15 as opposed to $14.30.
Act leader David Seymour said he had written to Mr Foss last week calling for the review of regulations.
"Regulations can play an important role in protecting consumers, but should not be used to privilege particular businesses," he said.
Neither the New Zealand Taxi Federation nor Auckland Co-op Taxis responded to requests for comment.
By Audrey Young of the New Zealand Herald
