Govt planning review to help Uber

The Uber company has met resistance from traditional cab firms all over the world. Photo / Dean Purcell.

Alternative passenger service finds friends in high places as it runs into strife over rules on charging for rides.

The Taxi Federation says it believes taxi companies and private hire cars should operate under the same rules and regulations.

As the Uber passenger service gains popularity, the Government yesterday announced it would review the rules under which taxi and private hire services operate.

Taxi Federation executive director Roger Heale told Radio New Zealand today that technology had been "blurring" the differences between private hire services and taxi companies for some time now.

Uber is under fire for taking patronage from taxi firms as well as attracting customers who wouldn't normally take cabs, as it offers lower charges and is available through an app. Under the law, private hire cars such as Uber have to be booked in advance and produce a quote for each journey.

However, Mr Heale said there was no longer any difference between hailing a cab and "tap tapping" on an app, so the issue was whether Uber was a private hire service company or a taxi firm.

Mr Heale told RNZ the federation was happy for Uber to practise in New Zealand, but would like to see the company comply with the same rules as other taxi companies.

"If you're going to be a taxi, if you're going to act like a taxi then you should be regulated as a taxi and I think that again is on the back of a lot of this review that needs to be cleared up."

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."

Uber 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.

Uber for hire

• High-tech competition for taxi services

• Operating in 54 cities worldwide including Auckland and Wellington

• Started in San Francisco

• Company now worth US$40 billion

-Additional reporting: Morgan Tait