Uber is seeking legal advice after 40 of its drivers in New South Wales had their vehicle registrations suspended following a government crackdown on illegal ride-sharing services.
The ride-sharing company is looking to expand into as many territories as possible globally but fierce resistance from taxi drivers and clashes with governmental regulations continues to damage the company’s image.
New South Wales Roads and Maritime Services director of safety and compliance Peter Wells said the government would impose suspensions and fines for those breaching regulations designed to prevent unlicensed ride-sharing. The legislation states that taxis and other hire car services must have authorised and accredited operators and a licensed and insured vehicle.
Taxi drivers in the southeastern Australian state have continued to apply pressure on the state government to ensure Uber drivers pay the same license and registration fees as taxis however this has not prevented Uber drivers taking to the road.
Uber said it was “shocked” that the Roads and Maritime Services “did not appear to show these drivers any due process and we are reviewing the legal options to reverse this decision”.
Wells said that “thousands of dollars in fines have already been issued to drivers offering illegal ride-sharing activities” and promised that if drivers continue to offer illegal ride-sharing services, they will continue to risk registration suspensions and fines”.
The suspensions for the 40 Uber vehicle owners will last for three months and will take effect on Wednesday. Other cars found to be operating for Uber have been threatened with $637 penalties for each offence which can increase to $2,200 if it is taken to court.