Uber incursion prompts government overhaul of taxi regulations

The government has announced an overhaul of small passenger services, aimed at simplifying the sector and bringing it “into the 21^st century.”

At present, there are separate categories and rules for taxis, private hire, shuttles and dial-a-driver services including Uber.

Under the intended changes, these services will now be regulated under the single category of “small passenger service.”

Taxis will continue to be defined as small passenger services and app-based operators, such as Uber, will now be defined as a small passenger service and will be required to become an approved transport operator.

“Some rules that impose costs on operators but no longer provide any significant benefits will be removed.”

Under the new system, drivers will continue to be required to hold a P endorsement and display a driver identification card. (A fit and proper person check, including a police check, is undertaken before a P endorsement is granted. )

Drivers must continue to operate within work time limits.

Vehicles will continue to be required to have a certificate of fitness and those operating within “the main 18 urban areas” will require “an in-vehicle recording camera unless they have an exemption.”

As for the requirements that have been removed:

• A small passenger service vehicle will no longer have to display information about fares, mandatory branding, information supplied in Braille
• Drivers won’t require an area knowledge certificate (thanks to GPS and mapping technology rendering such knowledge less important than it was in the past or need to pass a full licence test in the preceding five years.) In addition, the need for a driver to have passed a passenger endorsement course is being reviewed by ministers.
• Operators and companies will no longer need to belong to an approved taxi organisation, provide small passenger services on a 24/7 basis, hold a certificate of knowledge of law and practice or passenger service licence, or monitor driver panic alarms 24/7 from a fixed location.

The rationale for removing these requirements is that they “no longer add value ... Removing these requirements means that the proposed regime will be more flexible, and reduces compliance costs. It encourages businesses to make their own decisions about what their services should include, depending on their customers’ needs.”

The changes will be considered by Parliament as part of the Land Transport Amendment Bill in 2016. 

EARLIER: The government will release the results of its regulatory framework review for small passenger services later tonight, NBR understands.

The results, which will be announced soon after 6pm, will be announced by Transport Minister Simon Bridges.

The review will contain a “number of new conditions Uber won’t like,” a well-placed source tells NBR.

Just hours ago, Uber announced it was dropping its prices by 20% in Auckland and Wellington, as well as making it easier for drivers to become accredited.

Uber has also dropped the requirement for drivers to have a commercial licence.  

“We are introducing new processes that cut the cost of getting on the road to $20 and take only around six days to complete, making flexible earning opportunities for residents in Auckland and Wellington even more accessible,” Uber announced this afternoon.

Asked if today’s announcement had anything to do with the government’s review, Uber declined to comment.

Associate Transport Minister Craig Foss told NBR ONLINE earlier this year he had instructed officials to review the regulatory framework for small passenger services in response to queries about the status of private car hire company Uber.

He said the results of the review would be available midway through this year.

Uber welcomed the news at the time.

“We welcome the minister’s announcement and look forward to working in consultation with the government in the coming months as it clarifies the regulations and deliver certainty to the industry."

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