Yes, its a bit of a thumb suck to guess where all this will end up.
A friend of mine is going for an Uber "licence" (out of work geologist!): (in WA) needs a new "T" or "F" class driver's licence, a medical exam, a car roadworthiness inspection, car less than 7 yo, a four door and not salvaged, national police check, national licence check, move his car comprehensive insurance policy from personal liability to work related insurance cover. An Uber car check is also done - too scraggy a car and you wont get the job. All this takes about two months.
Uber will take 20% of every fare. Drivers typically make about $20/hr, pre-costs (mostly fuel, of course, but also increased maintenance, mobile phone, etc), but that is dependent on when and for how long they work. Peak periods are better paid and that can go up to $40/hr.
It is likely that compliance costs will increase as the government legitimises the business.
Ironically, and this is something the taxi companies would never admit, taxi profitability is likely to increase rather than decrease. This is because Uber brings competition, which forces changes on taxis (price, quality, service, etc) that will result in higher uptakes. You could also argue that an (initially) cheap service like Uber gets more ppl used to taxiing everywhere with the culture benefiting taxis also. Either way, the government will have to reduce taxi compliance costs if they fully legitimise Uber, which is happening.
CAB Price at posting:
$3.63 Sentiment: Hold Disclosure: Held
