NT govt bans Uber

Uber has been banned in the Northern Territory. Transport Minister Peter Chandler has revealed the US ride-sharing company will not be allowed in the state following a Cabinet meeting discussing the Commercial Passenger Vehicle (CPV) industry.

On Monday, the Cabinet discussed a range of new initiatives as part of the NT government’s review of the CPV industry. Chandler assured that the planned reforms will benefit passengers, drivers and operators. Some of these new measures include pre-payments to prevent fare evaders, reduction in credit card surcharges and an upgrade of in-security systems, he said in a statement.

Also discussed in the meeting was whether to make legislative changes to allow Uber to operate legally in NT. Chandler told the ABC that the Cabinet decided against changing the legislation. The publication, however, revealed that some Cabinet ministers support the legalisation of Uber in the region.

“This was a Cabinet decision where we would stop Uber at the moment from coming to the NT,” he said.

Chandler said the government worried that Uber and other new players in the market would hurt the taxi industry. However, he also did not rule out the legalisation of the company in the future when NT has the right regulation.

“I think the Territory does risk being left behind,” Brad Kitschke from Uber said about the government’s move to ban the company. “And that’s something Territorians will have to consider if they don’t have a government that’s willing to look at progressive changes, embrace competition.”

The NT Taxi Council, on the other hand, was pleased with the news. Executive officer Les Whittaker said ride-sharing companies like Uber have safety issues among other concerns that are worrying.

The industry review report discussed by the Cabinet also contained recommendations for the industry, including a “mystery shopper” initiative, the introduction of 13 new taxi licences into the Darwin market, and the reduction of taxi electronic payment surcharges to a maximum of 5 percent.

Uber has been legalised in New South Wales, Australian Capital Territory and Western Australia.