Metered taxi businesses in Durban are demanding the government clamp down on the new kid on the block, Uber.
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Durban -
Metered taxi businesses in Durban are demanding the government clamp down on the new kid on the block, Uber, which they claim is operating illegally, flouting regulations and putting passengers’ lives at risk.
They say Uber, which operates using an online app instead of a metered system, has flooded the market with cheap fares and that none of their vehicles in Durban is legal in terms of South Africa’s National Land Transport Act.
This may result in accident victims being unable to claim from the Road Accident Fund (RAF) because Uber is an IT company acting as a public transport company without the right legal requirements.
The Durban taxi operators have joined the chorus of complaints nationally and internationally. Durban taxi companies rely on the fares of revellers, sports fans and conference delegates for business.
Metered taxi operators claim the internet ride-sharing service is unfair competition because they do not carry the overheads of a bona fide public transport company.
In the latest development Gauteng’s Roads and Transport MEC Ismail Vadi said in an interview yesterday Uber was illegal in Gauteng.
But the service has outsmarted transport authorities leaving them scrambling to explain how it has brazenly continued to break the law. Uber drivers and passengers have also been threatened with violence in Gauteng from angry metered taxi drivers.
“At the moment there is a lacuna in the legislation between a metered taxi association under chartered services, it does not accommodate Uber from a legal point of view,” Vadi told Talk Radio 702. “In principle we’ve told them they have to register, if not they will not be allowed to operate. They will be an illegal operator. I think there is willingness on their part.”
But independent transport analyst Paul Browning said the only law - the draft National Land Transport Amendment Bill which has provision for “e-hailing” has yet to go before Parliament.
Browning said the compromise that was being suggested that Uber partner-drivers should apply for metered taxi operating licences was “clearly a fudge” because the National Land Transport Act defined a metered taxi to be “equipped with a sealed meter”.
Uber spokesman Samantha Allenberg said the regulations had been drafted in a time before smartphones, so there was no clear category for Uber driver-partners.
“Uber continues to partner with operators who have been taking guidance from the provincial department of transport on how best to obtain licences,” she said. “The National Department of Transport has issued a Practice Note that serves as guideline to provinces on how to regulate Uber driver-partners .
“This states that until the act has been amended, driver-partners should apply for chartered service operating licences.”
Adding to the confusion is the decision by Cape Town municipality to licence 145 Uber-linked cars. Uber said this was a step in the right direction, but hundreds of its other potential drivers still don’t know when or whether they will be allowed to operate.
The 145 permits only account for between 10 and 15 percent of the more than 1 000 applications to operate as Uber partner-drivers here.
Uber, which was founded as “UberCab” in 2009, allows consumers with smartphones to submit a trip request, which is then routed to Uber drivers who use their own cars.
According to reports, the service was initially available in 58 countries and 300 cities worldwide.
Its operations were banned in Germany this year after a court decided it violated transport laws and in South Korea nearly 30 people linked to the company were charged with running an illegal taxi firm.
Mexico City could become the first city in the world to limit the number of Uber cars, draft regulation shows, in the latest potential hurdle for the ride-hailing service that has spurred a regulatory backlash around the globe.
The managing director of Durban’s Eagle Taxis, Faye Freedman, said Uber operations were a problem.
“They are not regulated to run as a public transport company and don’t comply with the regulations,” said Freedman.
“They are undercutting prices because unlike us, they don’t have to pay public transport insurance, workmen’s compensation, taxes and training levies. These are requirements that normal registered companies have to adhere to.
“In addition, they are able to flood the market with thousands of vehicles because they do not adhere to the country’s permit requirements. Many of Uber’s customers also don’t know that if they are involved in an accident, they will not be paid out by the RAF. “
She said another flaw was that they did not have set prices and their prices surged when the demand was high. This too, she said, was illegal.
Insurance expert, Lizette Erasmus of IntegriSure, cautioned this week that with services like Uber “when an accident does occur, it becomes difficult to determine where accountability lies.
“Insurance companies need to carefully reassess policies provided in this instance. In the same way, policy holders - whether they are passengers or drivers - need to ensure that they have the appropriate cover.”
Erasmus said according to Uber, each driver was responsible for their own passenger liability insurance, as they were independent contractors. “This type of insurance protects the passenger, should the driver be deemed liable for the accident.”
The general manager of Umhlanga Cabs, Kuben Moodley, said Uber was disrupting the market and this unfairly affected businesses. “We are playing by the rules but they are not,” said Moodley.
He added that the drivers at metered taxi businesses earned a percentage of what the company made.
“There are some evenings when our drivers do not even make R50 or R100 because they (Uber) are flooding the market with cheap fares. One has to ask, if a country like Germany could ban them, surely there must be a problem?”
Peter Lehman, the general manager of Mozzie Cabs, said he was concerned about customers, who used Uber taxis.
“There is no regulatory authority checking the vehicles are roadworthy, so passengers’ lives are at risk.
“Another risk is that their drivers use unmarked cars, so when the city police, for instance, set up road blocks, in most instances Uber’s cars are not pulled over.” He said it could also be unsafe for passengers to get into vehicles, which were not branded.
Lehman added that it was vital for the Department of Transport to clamp down on Uber.
The spokesman for the Department of Transport, Nathi Sukazi, said if an individual or a company transported passengers for commercial purposes, they should have operating permits.
In the case of Uber, he said: “A specific car must have an operating permit. If a car does not have the necessary permit and is found to be carrying passengers for profit, this car can be impounded.”
Independent on Saturday