The low-cost version of Uber has launched in Perth today, despite the state government publicly stating it’s breaking the law.
The San Francisco-based company first entered the Western Australian market in July with its uberBlack transport service, which allows users to order a private vehicle and driver through a smartphone app.
At that time, Uber head of Asia operations Mike Brown conceded the company was breaking the law as it did not adhere to the state government’s regulation of $60 minimum fares for privately hired charter vehicles.
The low cost version of Uber - uberX - officially launched today and also operates outside of stipulations set by the state government.
Transport Minister Dean Nalder said he would not endorse uberX because it was not a legal service in its current form.
“The government notes uber taking on board the requirement of having properly licensed drivers for passenger carrying services, however it is also the legal requirement for each passenger carrying vehicle to be licensed under the Transport Co-ordination Act 1966, which is not the case at present,” Mr Nalder said in a statement.
He said Uber had approached the government with information about its plans, to which the government responded with advice on necessary legal requirements.
However, the minister stood firm on his opinion that uber was out of line, and rejected suggestions the government may have been in support of Uber.
“Any suggestion by Uber that they have endorsement from myself as minister and the state government for the operation of uberX services is untrue,” Mr Nalder said.
“Any suggestion that I or the state government have been working with uber in support of uberX is untrue.”
Mr Nalder has not provided any indication of what he intended to do about the company wilfully breaking the law, aside from saying Uber had been advised on a number of occasions of the government’s position.
Premier Colin Barnett said this morning he recognised there was a demand for the higher level of service provided by uberBlack, but the introduction of uberX was a concern.
"It's basically an organised pick-up service, I think the issue primarly for government is the safety of passengers and this becomes a very deregulated environment with a lack of supervision and a lack of safety," Mr Barnett said.
Uber markets its uberX service as a low-cost alternative to taxis with a promise that rates will be 20 per cent cheaper.
The smartphone app through which Uber drivers are ordered states the minimum fare for an uberX car is $8 while the minimum fare for the uberBlack service is $20.
The company has also been adamant that its service is safe by running full background and criminal checks on its drivers.