NSW Government puts UBER on notice and cracks down on Ridesharing.
An article published on ABC News today, the 28/09/2015 Titled "NSW Government cracks down on illegal ride-sharing; puts Uber on notice.
is rather misleading to the public.
What the public need to understand is that there are 2x types of Ridesharing. One is legal and allowed in all states of Australia, the other has just been temporarily banned in NSW and should not be called Ridesharing, it should be known as an illegal Taxi service.
Recently Transport for NSW said in a statement "The law is clear and has not changed: if a NSW driver is taking paying members of the public as passengers, the driver and the vehicle must operate in accordance with the Passenger Transport Act."
"However, these laws do not apply to, for example, a group of friends sharing expenses or a car-pooling arrangement between colleagues sharing a ride to the office, function etc."
WHAT IS LEGAL RIDESHARING
Ridesharing / Carpooling is allowed when the ride is shared with the driver and passenger(s) and they are going in a similar direction.
Costs of the trip are allowed to be equally shared amongst the people sharing the ride, however the driver is not allowed to blatantly profit from the rideshare.
People often rideshare around Australia as an alternative to the higher costs of seeing Australia, and there is nothing wrong with that.
Despite the fact drivers cannot profit from giving lifts, drivers are entitled to recover costs of the trip from the other carpoolers, provided they agree and know up front.
Costs you are entitled to recover are:
a) Fuel Costs
c) Wear and tear on the vehicle, including Tyres, Oil, depreciation of the vehicle
It is also important to note that once this becomes a for profit exercise it becomes commercial and the drivers insurance may not also cover the commercial activity.
Insurance will however cover people in a rideshare where it was not for profit and therefore not commercial. Please still check with your insurance provider as some Insurance providers are dodgy and will do anything to get out of paying.
Ridesharing becomes illegal when the driver shares a ride with passenger(s) and profits, or blatantly drives passenger(s) to locations for profit where the driver is not actually going in a similar direction. The second part is not actually ridesharing and is simply a taxi service.
The NSW Government have rightfully put a stop to Uber's Illegal Taxi Service for now, Uber might call it Ridesharing but it is black and white a Taxi Service and theft from real Taxi drivers who pay their licensing to the Government.
THE GOOD NEWS
The good news is that you can keep on Ridesharing, make new friends and help out the environment and your back pocket all at once by using LifeSocial Rideshare. It's free to Join and Use, no hidden catches or time restrictions. Visit https://lifesocial.com.au and Join Today.
LifeSocial Rideshare is 100% Legal, Safe and Easy to Use.