Uber has officially launched on Waiheke Island, sparking mixed feelings from locals and industry bodies.
The rideshare giant announced on Tuesday that it has started operating in several new regions across the country, including Waiheke Island.
The expansion also includes Wānaka, Levin, Ashburton, Hāwera, Whakatāne, Tokoroa and Oamaru.
In its announcement, Uber said, “People on Waiheke Island can now incorporate Uber into their day-to-day travel.
“We’re proud to be bringing Uber to Waiheke Island, helping local businesses connect with new customers and offering people a safe and reliable way to get to events, activities and home at the end of the night,” Uber Australia and New Zealand managing director Emma Foley said.
“We know that in regional communities, being able to get a ride on demand can make a huge difference in staying connected to friends, family and local businesses.”
However, some locals are sceptical about the viability of the service.
Waiheke Island Tourism Inc chair Christina Hyde says it’s “very difficult for international franchises to gain a footing” on the island.
“Uber’s tried to launch on Waiheke before, but last time, a few years ago, it was unsuccessful,” Hyde told the Herald.
“None of the local taxi drivers supported it and it wasn’t a strong enough proposition to attract either drivers from the mainland or other people on the island into the business. So it will be interesting how it goes this time.”
Hyde believes seasonal work and tourism, the “protective” nature of locals, and the costs of operating vehicles on the island will be major hurdles for Uber.
“It’ll be interesting to see how successful they are recruiting drivers on Waiheke. Waiheke’s a very protective community and it’s full of independent owner-operators.
“I think operating a vehicle on the island is very expensive. Waiheke has probably the highest petrol rates in New Zealand and, even with electric cars, it’s still extremely expensive. And it’s very seasonal work. So it would be very difficult for a new driver to be able to find full-time employment for a company like Uber.
“It’s a small-town, supportive atmosphere on Waiheke. It would be very hard for an outsider to break into that community.”
The Herald understands Uber is trying to entice drivers from Auckland to operate on the island – only accessible from the mainland by ferry – through incentives and better rates during its launch.
Uber confirmed existing Auckland and local driver-partners can earn an extra $10 per trip on Waiheke Island, for up to 20 trips, until May 10.
Uber also ran an advertising campaign targeting locals with a $1000 bonus for new drivers when they complete 20 trips in 90 days, with call-outs to potential drivers to meet company representatives at Waiheke Ostend Market this month.
Existing Auckland customers can save up to $20 for one trip on the island until May 12.
Uber declined to answer questions from the Herald about the number of drivers currently signed up to work and the previous unsuccessful attempt to launch on the island.
Hyde, whose organisation also acts as the industry body for transport operators on the island, says local businesses aren’t concerned about Uber’s arrival.
“I’ve spoken to a few of our transport operator members and they’re not too concerned about it. I think they have very strong connections already within the community and with other businesses in the community.
“They also offer as competitive rates as possible, given the economic climate on Waiheke. And they’re not concerned because they’re already working to the max over that seasonal period, so they don’t expect that to change. It will just be interesting if Uber does manage to recruit permanent drivers for the island.”
In its press release, Uber said, as it establishes itself, “the platform will continue to welcome local driver-partners”.
“For those who choose to drive on Waiheke Island, it offers a way to earn that can fit around the pace and rhythm of daily life here, whether that’s work, study or family commitments,” Foley added.
“It’s about locals helping locals get where they need to be.”
Uber claims to have contributed $1.5 billion to the New Zealand economy in 2024, including $67 million in tourism spend and $260m in value from flexible work, based on its own economic impact report.
However, Hyde says she doesn’t believe Uber will affect tourism numbers.
“In terms of tourism numbers, I don’t see Uber as a drawcard for tourists. It can certainly support tourists when they’re here, but I don’t think it will really have an impact on tourism numbers.”
Rory Dunleavy, general manager of local vineyard Te Motu and Waiheke Winegrowers Association chair, is cautiously optimistic about Uber’s arrival.
“I would say I think it could be a great thing for our guests and sort of cautiously welcome it,” he told the Herald.
“We often see, from a guest experience, there comes a point in the evening, even for locals, where you can’t get a taxi to pick up.
“I feel like a lot of locals and businesses would welcome there being more competition and platforms where you might be able to book a ride home at a late hour.
“There have been some fantastic taxi operators, but … it sort of does feel like a bit of the Wild West at times.”
Dunleavy did share some of Hyde’s scepticism, while both also expressed concern over Uber’s employment practices and the “welfare” of drivers.
“It all comes down to execution,” Dunleavy said. “Like you read all these stories about [Uber] drivers not really doing well out of it, and I guess that’s where personally I’d sort of be a little bit wary of that business.”
Dunleavy said the situation was “nuanced”.
“It’s sort of a shame that we haven’t worked out more of a local version of it … I think my understanding is there’s a significant amount of the profits that go overseas, and compared to the local drivers, it’s sort of more money going off the island rather than staying in the local economy, which is a shame. But I reckon in terms of guest experience, it could be a fantastic thing.”