Uber's expansion accelerates, as ACT authorities legalise ride-sharing services in Canberra

Canberra is to become the first Australian city to allow the legal and regulated use of ride-sharing services such as Uber.

In a ruling published on Wednesday, the Australian Capital Territory (ACT) authorities said it would allow ride-sharing services in the Australian capital from the end of next month to offer “safe, flexible and affordable” journeys.

The ACT government will also drastically cut its taxi licence fee from AU$20,000 (£9261) to $10,000, with a further AU$5,000 cut planned for next year.

“Public transport is an integral part of any city,” Shane Rattenbury, the ACT minister for transport reform, said.

“These reforms are a win for Canberrans and those travelling to the territory, improving access to diverse transport options and competitive pricing.”

Earlier this month, a number of cab drivers in the Australian city staged a three-hour to protest against the introduction of the ride-sharing service.

Under the regulations set out by the ACT authorities, drivers of ride-sharing vehicles will follow a procedure similar to taxi drivers, which will include criminal and driving history checks, accreditation and registration.

Canberra’s existing taxi network will be replaced by a new transport booking service, designed to allow accredited drivers to carry passengers via Uber provided they meet a number of requirements, such as being drug and alcohol free.

“Our checks are actually of a higher standard than the taxi industry and they are backed up by a rating system that drivers must maintain if they are to be kept on the system,” said David Rohrsheim, general manager of Uber Australia.

“We won’t put cabs out of business. A cab is still the best way to get from A to B if you’re on George Street in Sydney.

“We just make better use of the cars that are out there [...] There is a top-down mood for change in Australia.”

On Tuesday, Transport for London, the capital’s transport authority, said it would launch a consultation that could result in a severe crackdown over the ride-sharing service in the city.

“We are launching a public consultation in order to inform and improve the regulations that govern the capital’s private hire trade,” said Garrett Emmerson, chief operating officer for surface transport at TfL.