The paper "Reforms introduced by the ACT and NSW Are Sufficient to Compensate Taxi Disruption Caused by Uber" is a great example of a business case study. The ride-sharing service Uber entered the Australia market in 2012. This is a dynamic platform where the driver can match with the passenger and partners with the aim of reaching a given destination. At the moment, Uber does not have a major competitor in the Australia market despite competing globally with Didi Kuadi and Lyft. In Australia, Uber services include UberX and UberBLACK (Code, 2015).
The entry of Uber in Australia has disrupted the traditional taxi business. The traditional taxi business has been on the decline following the introduction of Uber, which is convenient and costs effective. The taxi business has been under crisis in Australia since the introduction of Uber (Woo & Bales, 2016, p. 17). This is due to the increasing competition from Uber, which threatens to eliminate the taxi industry which has for a long time been protected by a monopoly (Rauch & Schleicher, 2015, p. 5). The taxi drivers have been lobbying the local and federal governments and filing lawsuits against Uber (Law and Ma, 2015).
This paper analyses whether the reforms introduced by the ACT and NSW are sufficient to compensate for taxi disruption caused by Uber. The paper then looks at societal changes that have enabled the rise of ride-sharing businesses such as Uber. Lastly, the reforms are discussed on their appropriateness for the economy. Since the introduction of ridesharing such as Uber in Australia, taxi drivers have been arguing that Uber is engaging in the unfair competition (Code, 2015).
This is especially through the Uber model of operation which taxi operators have been arguing is outside the regulatory framework and burdens the industry (Deloitte, 2016, p. 50). The popularity of Uber has had a major impact on the taxi industry. This is especially Uber X, which has been substituting the rides that would have taken place using the taxi (Law and Ma, 2015). Since the entry of Uber, the value of taxi licence has been on the decline especially in ACT and NSW. With the advantages of Uber being more than a taxi, the taxi industry has been losing its customers (Edelman & Geradin, 2015, p. 17).
The current level of disruption in the Australian taxi industry is high. ACT was the first state to legalise ridesharing in Australia. The reforms were introduced after a review had been done on the way in which emerging technologies and business models can enhance the on-demand transport system (Law and Ma, 2015). Through the reforms, the government ensured the Canberra residents that they will access to safe, affordable and flexible taxi, car hire and ridesharing.
The reforms also promised to reduce the high costs and regulatory framework on the traditional taxi and car hire services (Deloitte, 2016, p. 50). This was aimed at ensuring that the taxi industry remained competitive and sustainable for all. The reforms were carried out in two stages. The first stage involved allowing the ridesharing and innovative booking services which were to be subjected to safeguards. This included checks on the criminal history of the driver and a reduction in fee for the taxi and car hires which was done immediately (Deloitte, 2016, p. 50-51).
The second stage included new laws in the legislative assembly, full suite reforms which included the accreditation for drivers and rideshare (Law and Ma, 2015). At this point, the regulations for the taxi and car hires were significantly reduced.
Allen, D. (2015), The sharing economy, Review-Institute of Public Affairs, 67(3), 24.
Bond, A. T. (2015), An app for that: Local governments and the rise of the sharing economy. Notre Dame Law Review, 90(2).p. 261.
Cannon, S., & Summers, L. H. (2014), How Uber and the Sharing Economy Can Win Over Regulators, Harvard business review, 13.
Code, B. (2015), UberX ridesharing service legalised in NSW, taxi drivers to be compensated, ABC.Net, Retrieved 22nd April 2016, http://www.abc.net.au/news/2015-12-17/uber-x- legalised-in-nsw-under-government-proposals/7037600
De Percy, M.A. (2012), Introducing Government-Business Relations: History, Theories and Cases, 2nd Edition, Sydney: Pearson Custom Text
Deloitte, (2016), Economic effects of ridesharing in Australia, Deloitte.com, Retrieved 22nd April 2016, https://www2.deloitte.com/content/dam/Deloitte/au/Documents/Economics/deloitte-au- economic-effects-ridesharing-australia-010216.pdf
Edelman, B. G., & Geradin, D. (2015), Efficiencies and Regulatory Shortcuts: How Should We Regulate Companies like Airbnb and Uber?, Harvard Business School NOM Unit Working Paper, (16-026).
Katz, V. (2015), Regulating the Sharing Economy, Berkeley Technology Law Journal, 30(4), 1067.
Law, J. and Ma, M. (March 24th, 2015), UberX versus taxis: Why the time for taxis is over, News.com, Retrieved 22nd April 2016, http://www.news.com.au/finance/business/travel/uberx-versus-taxis-why-the-time-for- taxis-is-over/news-story/cb1e2d9dc77aa29dd88646cbae1d5d4e
Mastracci, J. M. (2015), A Case for Federal Ride-Sharing Regulations: How Protectionism and Inconsistent Lawmaking Stunt Uber-Led Technological Entrepreneurship, Tulane Journal of Technology & Intellectual Property, 18.
Posen, H. A. (2015), Ridesharing in the Sharing Economy: Should Regulators Impose Uber Regulations on Uber, Iowa L. Rev., 101, 405.
Rauch, D. E., & Schleicher, D. (2015), Like Uber, But for Local Governmental Policy: The Future of Local Regulation of the “Sharing Economy”, George Mason Law & Economics Research Paper, (15-01).
Walton, N. (2014), Taxi Apps Could Transform Global Transport Models, The Oxford Analytica Daily Brief.
Witt, A., Suzor, N., & Wikström, P. (2015), Regulating ride-sharing in the peer economy. Communication Research and Practice, 1(2), 174-190.
Woo, C. P., & Bales, R. A. (2016), The Uber Million Dollar Question: Are Uber Drivers Employees or Independent Contractors?, Mercer Law Review Forthcoming