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Delivering rideshare reform for

UBER submission to the Standing Committee on Economy and Infrastructure: Inquiry into ride sourcing services

July 2016

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1. Introduction 2. Regulating ridesharing 3. Model regulations 4. Industry transition 5. Benefits of ridesharing 6. Conclusion ______

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1. Introduction

Ridesharing is a safe, reliable and affordable transport model. Since 2014 the Uber platform has facilitated safe, reliable and affordable rides in Victoria. More than 11,000 Victorians are now partnering with the platform to earn an income and more than 500,000 Victorians have chosen uberX to get around their city.

Despite overwhelming support from the public and the ability to create a regulatory framework for ridesharing without changes to legislation, there has not been any progress. Uber has made a number of formal submissions to Government and the Ministerial Forum established by the Minister.

The rest of has moved to create sensible safety based regulations to cater for someone sharing a ride in their own personal car, matched by technology.

● In , a bipartisan approach from Government and Opposition enabled a completed transport review in just 90 days. The review culminated in the careful overhaul of the entire transport industry, with a series of interim regulations effective immediately pending the introduction of statutory amendments. Legislation has now passed the Parliament and the Government has also reformed Compulsory Third Party Insurance to accommodate ridesharing. ● In the Australian Capital Territory, a coalition of cross-party legislators acted to regulate ridesharing after less than seven months of engagement and deliberation. ● In Western Australia, the Government committed to regulating ridesharing after a five month review, with ridesharing regulations which took effect on 4 July. ● In , the Government has announced reforms, in effect since 1 July, while the Opposition has signaled its support for the New South Wales regulatory model. ● In Tasmania, enabling legislation has passed the House of Assembly. ● In the Government has commissioned an Independent Review of taxi, limousine and rideshare services. The Review is due to report its recommendations to the Government in July. ● In the Northern Territory the Labor opposition leader announced that, if Labor forms Government after the August election then it will support the regulation of ridesharing. ● In recognition of Victoria continuing to fall behind, the Victorian Opposition has publicly called upon the Government to introduce ridesharing legislation. Fiona Patten MLC of the Australian Sex Party has also introduce d a Private Member's Bill outlining an effective, safety focused regime for the industry. The Victorian Greens have also announced that they support the regulation of ridesharing.

The existing legislation already allows the The Taxi Services Commission to create a licence class for ridesharing and bring the activity into a regulated framework. Section 145 of the Transport (Compliance ​ and Miscellaneous) Act 1983 allows the Taxi Services Commission to create a new class of Special ​ Purpose Vehicle licence. In doing so the TSC could specify the requirements that a holder of this class of licence must meet for example, that they only be permitted to accept rides that a booked and cannot undertake rank and hail work. Section 142 of the Act allows the Minister to assign an administrative fee for the new sub-class. This regulation could be implemented without delay and would not require legislative changes.

The emergence of ridesharing demonstrates that transport models driven by smart technology can help to make cities safe, vibrant and better connected. It is a safe, reliable and affordable transport alternative, and a valuable source of income for the unemployed and underemployed. Without effective regulation, Victoria cannot access these benefits and will continue to fall behind. This will cost jobs, prevent Victorians from accessing a service they love, and damage the State’s reputation as innovative and open for business.

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2. Regulating ridesharing

The nascent rideshare industry cannot deliver the true benefits to riders, drivers and cities without sensible, outcomes-based regulation that support its sustainable growth.

Ridesharing depends on private drivers providing rides around their existing professional and personal commitments. Half of Uber driver-partners drive for less than ten hours per week. They are often underemployed parents, caregivers, students, veterans and retirees locked out of traditional ‘9 to 5’ economies by force of circumstance.

Driver-partners have discretion over when and where they work. Together, they form the backbone of a responsive supply model. With real time demand tracking, drivers can log-on in response to high demand and log-off to pursue other activities in response to low deman d. In this way, the ridesharing model accommodates highly seasonal demand across the day and across the year. Drivers can enjoy less downtime and greater trips per hour.

Costly or complex administration is a relatively small fixed cost for full-time commercial drivers. However, it is a disproportionately large fixed cost for private drivers providing rides in their spare time. This means unnecessary costs and red tape fundamentally limit the number of rideshare drivers that can access this work and, thus, make ridesharing unviable.

Ridesharing operates in a different market with a different model to existing point-to-point transport services. It faces different commercial and safety risks, and employs different mitigation strategies. Different regulation is appropriate.

Regu lations already acknowledge fundamental distinctions between different forms of passenger transport. Taxis, for instance, are distinguished from other modes by their capacity to engage in street hails and rank jobs: 68 per cent of total taxi work nationally1 . Although taxis are able to participate in the advance booking and on-demand ready-to-ride markets, the rationale for taxi regulations is grounded in the risks unique to anonymous rank and hail work:

Ridesharing does not operate in the rank and hail market. This mitigates many of the risks applicable to traditional taxi work. The ridesharing model achieves conventional safety and consumer protection objectives but it does so in a different way using smarter technology.

Operating in only a small segment of the point to point market with advanced s afety technology, ridesharing is safe, accountable and transparent. These characteristics make a number of traditional regulatory requirements inapplicable to ridesharing.

Features of an effective regulatory regime for ridesharing Regulating ridesharing is not a matter of yes or no - the ‘how’ is just as important. The combination of the various licences, checks and administrative proce sses vary in every regulated jurisdiction and have an enormous impact on how effective ridesharing can be. This is because the majority of drivers use ridesharing as a flexible income around around their existing schedule. As a result, they are highly sensitive

1 Australian Taxi Industry Association state and territory statistics for 2014

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to increased costs and delays brought about by outdated regulatory processes. Put simply, costly barriers to entry make the rideshare model unworkable.

This submission outlines the key regulatory outcomes necessary for a safe, reliable and thriving ridesharing industry. This is based on the proven success of the NSW and ACT safety-based regulatory models, in particular, and those of many others internationally. It also demonstrates how Uber satisfies the same public safety objectives as other point to point transport services using smart technology and streamlined processes.

When the ACT and NSW took the progressive stance to regulate ridesharing in late 2015, they did so by focusing on reducing red tape and costs to individual drivers. These jurisdictions have introduced sensible, safety based rideshare legislation with costs to drivers of $100 or lower.

In these jurisdictions the stringent safety processes Uber has in place around driver history checks, national police checks and vehicle inspections were enshrined in regulation, at the same time as reducing costs and red tape for drivers. That is what good progressive reform can do. Uber strongly urges the Victorian Government to take a similar progressive policy approach.

Background checks Uber undertakes background checks of all uberX driver-partners to standards that meet or exceed the standards for commercial driver accreditation. Applicants are screened through the Australian Federal Police CrimTrac system and Uber rejects any candidate found to have a criminal record. Driver-partners must also pass a VicRoads driver history report with an exemplary record. There is zero tolerance for any record of drink driving offences.

In addition to background checks, ridesharing trips are de-anonymised and tracked in real-time. Riders are provided with the name, photograph and vehicle model and registration number of drivers prior to entering a vehicle. Drivers are supplied with the name and account details of riders prior to collecting them. Without this exchange of information, the rider is unable to identify their vehicle and drivers are unable to locate the rider. The arrangement cannot proceed outside the Uber platform.

By comparison, taxi rank and street hails are entirely anonymous. Vehicle , driver uniforms and CCTV systems are necessary for passenger assurance, to identify accredited vehicles, and to improve the safety and accountability of both drivers and passengers. These requirements are not applicable to ridesharing, which uses smart technology to achieve better safety outcomes.

Medical checks The consequences of an unfit driver affect all road users, whether or not the driver is deemed commercial or private. Private drivers are permitted to drive on the basis of a medical self-declaration despite sharing the road with millions of other drivers. They are permitted to carry passengers as diverse as adults, seniors and children.

There is no reason to submit ridesharing drivers to an alternative medical regime. Ridesharing drivers are private drivers who might spend one, two or ten hours per week generating income from their vehicle. That ancillary work does not distinguish ridesharing from private driving. Medical examinations generally cost in excess of $100 per application and are a poor use of job seekers’ and medical professionals’ time.

Vehicle inspections Prior to commencing ridesharing, all vehicles using the Uber platform are required to confirm the condition of a ridesharing vehicle prior to authorising the driver. In practice, this will mean a vehicle inspection

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Third, they facilitate the prompt investigation of incidents by recording the personal details of both parties and by recording the route taken. Upon execution of a valid legal process, Uber can assist police investigations with this information.

Anonymous trips require additional safety features that ridesharing do not. This is because anonymous rank and hail trips have particular associated risks that are not present in the pre-booked market. Cameras, for instance, are not required in a de-anonymised, cashless and GPS-tracked model such as ridesharing.

‘Safety cameras would not be required in a ride hail vehicle because there is a record of the journey with the passenger’s identity, the same justification as in the case of hire cars.’

3 - Victorian Taxi Association, Regulatory Framework Proposal ​

‘Taxis caught from a rank or hailed in the street are anonymous and so additional safety measures, such as security cameras, are necessary. Booked trips come with a record of the journey and so have different safety requirements.’

4 - NSW Government

Fatigue management Self-completed logbooks or other paper based mechanisms do not meaningfully prevent drivers from exceeding their work limits. Uber is working on using GPS and accelerometers in smartphones to verify ​ reports of speeding, hard braking, and other concerns, and providing that feedback to encourage safer behaviors. As always, if a severe issue is reported, Uber can waitlist a driver while it is investigates. Uber’s code of conduct also reminds driver-partners that “driving when you're drowsy can cause accidents. So if ​ you ever feel tired take a break.” Given the flexibility Uber provides, driver-partners can take a break ​ whenever they need it.

Driver knowledge tests Because rides are GPS-tracked and guided, driver-partners do not require comprehensive knowledge of particular urban environments. Navigation training and testing is unnecessary. Riders can view the status of a requested vehicle in real time, ensuring that drivers respond to requests immediately. Average wait times in Victoria are under four minutes.

Riders and drivers must mutually rate one another at the conclusion of each trip. The rating and feedback system captures any quality-related issues.

This accountability ensures a high level of satisfaction among both riders and driver-partners. In this way, actionable feedback and redress policies ensure quality service without resorting to onerous regulatory controls.

Fare transparency The introduction of ridesharing has delivered unprecedented transparency and competition into point-to- point transport. This is achieved without burdening Government or consumers with price controls. As a

3 Victorian Taxi Association, Regulatory Framework Proposal, 2015. ​ ​ 4 NSW Government press release, ‘The NSW Government response to the task force report’, 18 December 2015.

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● Ridesharing is good for consumers, good for drivers, and good for cities. ● Different service models face different risks and should be regulated in different ways. ● Onerous administrative burdens will make ridesharing unviable.

This streamlined regulatory environment would see the regulator deal primarily with a transport or technology platform at all stages of the regulatory process. The ridesharing reg ulatory scheme would consist of three entities: a technology platform, the regulator and the driver.

Ridesharing responsibilities

Platform ● The platform collects proof of identity, a medical self-declaration, and consent to undergo backgrounds checks from applicant driver-partners. o The platform checks the applicant against eligibility criteria stipulated in legislation. ● The platform is required to confirm the condition of a ridesharing vehicle prior to authorising the driver. In practice, this will mean a vehicle inspection deliv ered by an accredited commercial vehicle inspector. ● The platform must ensure that vehicles ridesharing vehicles are properly insured. Insurance coverage may be maintained by the vehicle owner, the platform or a combination of both. ● The platform is required to record the details of drivers and riders each trip.

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Regulator ● The regulator accredits the platform to assess applicant drivers against prescribed eligibility criteria stipulated in legislation. o A ridesharing driver authorisation does not permit a driver to engage in other forms of point-to-point transport. ● The regulator audits the platform to ensure that it complies with the terms of its accreditation.

Driver ● Drivers can only accept bookings, hires or requests from accredited platforms. This is essential since only a platform can verify the accredited status of a vehicle (through, for instance, an app). ● Ridesharing drivers must comply with personal obligations: o Ridesharing drivers are prohibited from soliciting or accepting hails in the street or from a taxi rank. o Ridesharing drivers are prohibited from accepting cash. o Ridesharing drivers must not drive under the influence of any alcohol and must comply with applicable road safety legislation.

The proposed regulatory scheme is safe, efficient and cost-effective. The regulator retains control over the criteria for driver authorisation whilst devolving the burden of administration to platforms.

Any distinctions between the rights and responsibilities of different transport models should be grounded in relevant safety risks. Certain regulations applicable to traditional taxis are simply inapplicable to ridesharing.

Regulations should be operator-neutral. Uber expects and welcomes competition within the ridesharing sector, and regulatory arrangements should accommodate the emergence of new ridesharing services.

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Different risks, different rights, different rules

Taxi Limousine Ridesharing

Definition A passenger vehicle A passenger vehicle A passenger vehicle authorised authorised to be hailed in authorised to accept to accept requests via an the street or from a bookings via any means accredited digital booking designated rank platform

Privileges Can perform rank and hail Can accept bookings by Can only accept requests work or accept bookings any means through an accredited booking platform

Limitations None Cannot undertake rank Cannot undertake rank and hail and hail work work

Cannot accept or solicit requests outside an accredited booking platform

Regulation Driver checks Driver checks Driver checks

Cameras to mitigate risks Driver must provide proof Mandatory affiliation with a associated with of credentials when hired booking platform to verify the anonymity outside an accredited accredited status of a vehicle booking platform and driver prior to pickup External markings to identify and verify an accredited vehicle during an anonymous hail

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4. Industry transition

The case for reform is well-established. Existing regulations do not accommodate safe and innovative models such as ridesharing.

The Victorian Government has a duty to better regulate the industry: to encourage choice, competition, safety, and innovation. It does not have a duty to act consistently with the best financial interests of licence holders. Three decades of lawmaking across Australia demonstrates that when governments act in the interests of licence holders, consumers and drivers suffer. Reform should not be delayed, denied or distorted on their account.

There is nothing to compensate. Over 60 per cent of ridesharing demand is new to the point-to-point industry. Through differentiated service and price, ridesharing attracts new consumers who would not otherwise take a taxi to complete 6 their journey. In this way, ridesharing is compatible with the existence and growth of taxi services. By way of illustration, Cabcharge has not written down the value of its taxi licence portfolio, indicating that those licences will continue to hold value.7

Ridesharing has delivered high consumer satisfaction, which is why 500,000 Victorians ride with Uber. Ridesharing is a different model providing a different service. Ridesharing only operates in the ready-to-ride market. Taxis will continue to enjoy exclusive access to the larger rank and hail market, and those licences will continue to hold value and permit the holders of those licences to earn income.

There is no economic case for compensation Taxi licences confer permission to operate a business. Licences are not protected ‘property’, although the industry is accustomed to thinking about them that way. It is absurd for a small clique of investors to claim indefeasible ‘ownership’ over the transport market. The transport market is an essential public resource. As the OECD notes:

‘The case for compensating incumbents for the loss of their ability to extract monopoly rents is 8 weak.’

Licence holders today are passive investors. A small fraction of licence holders operate or drive a taxi. The remainder earn extraneous economic rent in monthly lease fees. They earn this rent no matter how much work the taxi performs. Only 30 per cent of taxi licence holders actually operate their taxi9 .

By comparison, taxi drivers pay upfront to borrow a licensed vehicle, called a Bailment. If they do not recover that cost by the end of a shift, they earn nothing. This is the outcome of the bailment system.

To suggest that any reduction in the value of taxi licences should be compensated by the taxpayer or other industry participants is perverse. Industry-wide compensation would amount to a reward for pr ofiting off market failure.

6 Deloitte, Economic effects of ridesharing in Australia, 2016, 3. ​ ​ 7 Cabcharge, ‘Interim results presentation: Half year ended 31 December 2015’, 2016. 8 OECD, Taxi Industry: Competition and Regulation, 2007, 18. ​ ​ 9 Victorian Taxi Industry Inquiry, Final Report, 2012. ​ ​

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Uber does not advocate for the abolition of taxi or hire car licences. Taxis should continue to enjoy exclusive access to the rank and hail market, with industry data suggesting that taxi demand is growing. Limousines and hire cars should continue to enjoy access to the advance booking market.

Indeed, that growth has been driven by the rank and hail market. Whilst total trips have increased over the past decade, the proportion of trips that are booked has declined. The rank and hail market is growing, and 14 taxis should retain exclusive access to that market:

In New South Wales, the Government sensibly preserved taxi and hire car licence rights to rank and hail work whilst removing their onerous licence fees. The Victorian Government should take the same approach.

There is no justification for compensating incumbent transport models through a tax on new models and consumers.

Insurance and risk profile Taxis, limousines and ridesharing are distinct models with distinct risk profiles. These distinctions must be reflected in appropriate motor vehicle injury insurance regulations.

The relative risk profile of ridesharing is materially comparable to the risks applicable to private passenger vehicles. Ridesharing:

● Deploys underutilised personal assets, and ● Offers a flexible source of income ● Driven part time ● Generally driven fewer miles ● Driven in a car familiar to the driver ● Car generally operated by a single vs multiple drivers

This means that vehicles will generally engage in ridesharing only when they are not otherwise occupied. Ridesharing is ancillary to the primary application of the vehicle.

14 Australian Taxi Industry Association state and territory statistics for 2004-2014.

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It is entirely inappropriate to attribute to these vehicles the risk characteristics of a vehicle dedicated to hire car or taxi operations. Speculative insurance treatment will impose additional costs and administrative burdens unsupported by clear reasoning or actuarial injury data. Speculative costs will make ridesharing unviable for many of those who need access to flexible work the most.

Majo r insurers have acknowledged these distinctions in relation to private vehicle insurance. In August 2016, NRMA Insurance, part of the IAG group, said that:

‘This is a campaign of self-interest by a taxi industry that has not stayed abreast of changing customer preferences and the adoption of sharing economy services like Uber… We have made the decision to cover [our customers] if they choose to use their car this way.’

In February 2016 Allianz also moved to offer ridesharing domestic car insurance to uberX drivers nationally.

In July of this year the NSW Government announced changes to the way it deals with Compulsory Third Party Insurance for the point-to-point transport industry.

Ridesharing drivers will continue to operate in the general passenger vehicle Class 1 of the CTP scheme. As part of this new system, ridesharing operators will be required to make periodic premium top-up payments on behalf of their driver partners based on usage.

It is critical to understand the highly flexible and variable nature of ridesharing and the relatively low number of driving hours a typical rideshare driver operates their vehicle for ridesharing activities. The NSW Government’s understan ding of this has been the central premise for an informed and balanced debate of the point-to-point transport reforms in NSW.

The NSW Government’s approach recognises the fact that ridesharing drivers drive their own private vehicle and its primary use is private - like going to and from work, dropping the kids at school, visiting family and friends etc.

Importantly, this means ridesharing drivers will not have to make any changes to their CTP premium setting as the ridesharing platform will be held accountable for making top up payments to cover trips taken for ridesharing purposes.

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5. Benefits of ridesharing

Smart supply With real time demand tracking, partners can log-on in response to high demand and log-off in response to low demand to pursue other activities. In this way, the ridesharing model accommodates highly variable demand across the day, across the week, and across the year. Driver-partners are more productive with less downtime and greater trips per hour. Communities benefit with better transport service that scales in response to fluctuating demand. They have absolute discretion over when and where they work and, together, they form the backbone of a highly responsive supply model.

In this way, ridesharing benefits both major cities as well as regional centres with dispersed populations or underdeveloped transport infrastructure. Ridesharing can accommodate variations in transport demand associated with seasonal tourism, midweek inactivity, Parliamentary sitting weeks, and sporting events. Ridesharing improves transport connectivity in these centres without additional infrastructure by better utilising the excess capacity of existing vehicles.

Connected cities Ridesharing complements public transport where reliable service is unavailable. It provides a fl exible and scaleable solution to the ‘last mile’ problem, connecting riders from their door to a transport hub.

In , for instance, some 58 per cent of rideshare trips start or end in a public transport desert. And almost half of all trips are one-way, implying that for some suburbs, for at least part of the day, public transport is unavailable to cover either the outbound or return leg.

By improving connectivity across the city, ridesharing also supports local economic activity. For example, over 60 per cent of ridesharing trips are new to the point-to-point market - that is, not captured from existing transport modes - suggesting that many of those riders may be travelling to destinations that they would not have visited otherwise.

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In this environment, ridesharing helps to reduce the national dependency on private vehicles. In addition, demand for ridesharing peaks late at night on Fridays and Saturdays when reliable and affordable public transport is unavailable into and out of local entertainment precincts.

Economic opportunity Ridesharing is a valuable economic opportunity for our most underemployed and unemployed communities. Uber driver-partners are parents, caregivers, students, veterans and retirees locked out of traditional ‘9 to 5’ economies by force of circumstance. Ridesharing offers them a chance to use their existing assets and existing skills to earn a flexible income around their existing commitments.

Across the region, ridesharing generates millions of dollars in revenue for suburbs with high unemployment rates.

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Safe rides “Ridesharing apps and platforms can help make transport safer: passengers and drivers are not anonymous; feedback may help weed out riskier drivers and passengers; the app tracks location; and cash transaction are not allowed”15

Ridesharing mitigates many of the safety risks associated with point-to-point transport - for both riders and driver-partners. Ridesharing trips are:

● De-anonymised. Riders know the identity of the driver-partners and driver-partners know the ​ identity of the rider. Uber can investigate reported incidents swiftly.

● GPS-tracked. Riders can share their ETA and route in real time with friends or family. Uber can ​ adjust the fare in the event of a dispute over the route.

15 Grattan Institute, Peer to Peer Pressure, Policy for the Sharing Economy, 2016

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● Cashless. Riders cannot request a ride until they pre-load payment details into the Uber app. The ​ app facilitates an automatic transaction at the conclusion of the trip.

● Supported. Riders can register feedback through the app. Uber’s 24/7 support team acts on ​ feedback quickly - often within minutes. Further, riders and partners must mutually rate one another at the conclusion of each trip. The star rating system is an effective behavioural incentive that delivers excellent satisfaction.

These systems can mitigate the most serious and most common risks in the incumbent industry, such as rider violence, poor driver behaviour, fare evasion, fare gouging, and mishandled complaints.

First, they deter unethical or illegal behaviour by removing the anonymity of both riders and driver-partners.

Second, they mitigate the threat of cash robbery, fare evasion or credit card fraud since the calculation and payment of fees is beyond the control of either party.

Third, they facilitate the prompt investigation of incidents by recording the personal details of both parties and by recording the route taken.

Safe choices The emergence of ridesharing has been found to correlate with a statistically significant decrease in drink driving. In the United States, advocacy group Mothers Against Drink Driving found that ridesharing encouraged people to make better transport choices that save lives. For instance:16

● The emergence of Uber in Seattle corresponded with a 10 per cent decline in the number of drink driving arrests.

● After the launch of uberX in California, drink driving incidents fell 6.5 per cent per month among drivers under 30.

● Demand for Uber spikes at closing time for bars in Pittsburgh.

● In Chicago, 75 per cent of late-night weekend ride requests come from business premises with liquor licences.

● Uber ridership in Miami peaks at the hours when drink driving crashes are most likely to occur:

16 Mothers Against Drink Driving, Think and Ride, report with Uber, 2015. ​ ​

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When surveyed, 78 per cent of respondents said that friends are less likely to drive home after drinking since ridesharing services began to operate. And 86 per cent of respondents over 21 years old agreed that “Uber has made it easier for me to avoid driving home when I’ve had too much to drink”.

Reliable transport alternatives improve safety outcomes off the road too. Each weekend, uberX facilitates between thousands of trips between 2am and 6am on Saturday and Sunday mornings, reducing the potential for idle violence and disorder when people leave bars and clubs. The average response time in Melbourne is less than four minutes, mitigating the disruption that often accompanies congested transport nodes - namely, taxi ranks and bus stops - that funnel intoxicated patrons into concentrated areas.

Improving transport in smaller cities and tourist destinations Ridesharing allows the flexibility and scalability to provide transport services to communities that are tourist destinations and suffer from deficiencies in transport solutions over short periods when tourists swell.

In 2014-15 over the summer period Uber launched a pop-up ridesharing option in the Mornington Peninsula. Th e Mornington Peninsula is a combination of rural and coastal areas that receive an influx of tourists and seasonal locals every summer. A favourite for weekends away and events such as the Portsea Polo, the Peninsula is held back due to its size and a lack of public transport options.

The population of the Mornington Peninsula is usually around 154,000 residents but over the summer period can swel l to a population size of 250,000. The area is only served by 96 taxis and limited public transport. This makes it difficult to meet the needs of the tourist population. Uber’s pop up over the summer months added an additional 50 partner vehicles on the road, providing rides to more than 20,000 people.

The addition of ridesharing on the Mornington Peninsula helped inject income into the local economy through both our riders and driver-partners. Local tourism and hospitality businesses received a significant benefit with more locals and tourists taking advantage of a safe and reliable ride home. Local pubs and restaurants reported increased trade and turnover too. For example, Uber assisted more than 1,000 people to return home safely from the iconic Portsea Hotel. Following this pop up the technology remained accessible in that area with a smaller group of uber driver-partners continuing to service the area in the down-time to supplement other forms of transport.

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Greater Geelong As well as operating within the Greater Melbourne area Uber partners also operate in Geelong. Geelong is a community with many traditional manufacturing industries in transition. Many people, with lifelong skills in key manufacturing industries, will need to retrain for other roles. Ridesharing provides them with the opportunity to earn an income while they are seeking other employment or retraining for a different career path.

“The Committee for Geelong believes that, with the arrival of this disruptive innovation, current legislative framework for the transport industry may need amendment.... The economic opportunity and flexibility that Uber provides for unemployed and underemployed individuals shouldn't be underestimated. - Rebecca Casson, CEO Committee for Geelong.17

Future mobility Ridesharing is an essential precondition for the development of sophisticated carpooling systems. In San Francisco and other mature ridesharing markets, for instance, almost half of all Uber trips are taken through the uberPOOL product. Uber has facilitated over 100 million trips through the uberPOOL produce since launch across 33 cities. uberPOOL connects two or more consenting riders who are travelling in a similar direction along a similar route. The Uber app re-routes the driver-partner to collect each rider. At the end of the trip, each rider pays a fraction of the normal fare while the driver-partner collects a multiple of their usual fare.

In the first four months of 2016 alone, uberPOOL eliminated over 145 million kilometres of driving and saved 16,000 tons of carbon dioxide emissions. With mature carpooling systems like uberPOOL, ten per cent of young people who use Uber have chosen to not buy a car or to dispense with their car because of Uber.

17 Committee for Geelong, Opinion Piece ­ Uber, 2014

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Other products such as uberCOMMUTE connect riders with people who drive regularly to work.

In these ways, a mature ridesharing market can reduce the number of active cars in a city by some five per cent.18 Infrastructure Australia estimates that the cost of congestion in Australia is set to rise from $13.7 ​ Billion in 2011 to $53.3 Billion in 2031. Car occupancy across Victoria is below 1.25 persons per car and is declining19. UberPOOL can reverse these trends, significantly reducing the national environmental footprint ​ and improve congestion using existing infrastructure.

6. Conclusion

Ridesharing satisfies existing safety and consumer protection objectives using smart technology. It requires smart regulation and smart administration. The traditional prescriptive approach to regulation and licensing is unsustainable and unnecessary.

Ridesharing demonstrates that smart technology with a smart supply model improves cities. It offers cities a no-cost, scaleable transport alternative to supplement existing transport systems. It supports local economic activity across the day and across the year. It offers driver-partners a safe, flexible source of income and offers riders a safe, reliable and affordable alternative to car ownership. Policymakers must acknowledge these opportunities and ensure that regulatory settings encourage the development of these systems.

18 Copenhagen Economics, Economic benefits of peer­to­peer transport services, 2015 ​ ​ 19 VicRoads, Traffic Monitor, 2014

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