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Tasmanian taxi drivers demand compensation as Uber ‘eats into profits’

Pulse Tasmania
Taxi's queue in Salamanca. Image / Pulse (File)

Tasmania’s taxi drivers are calling on the state government to provide compensation for income losses they claim to have suffered since the ride-share giant Uber entered the market seven years ago.

According to the industry, operating a taxi is significantly more expensive than running an Uber vehicle, with drivers paying double for vehicle registration and insurance.

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High overheads, including some drivers having paid $120,000 for a perpetual plate, are pushing people away from the industry.

Attacks involving alleged racial slurs and vehicle damage are also being frequently reported across the Hobart area.

“No one wants to drive a taxi now, at the moment. It is very hard,” one driver said.

Taxi’s queue on Liverpool Street in the Hobart CBD. Image / Pulse

“[It’s] getting very very difficult. The taxi driver will [instead] jump on the Uber.”

The industry hopes to follow in the footsteps of their Victorian counterparts, who recently won a multi-million dollar class-action settlement against Uber.

Under the deal, Uber is set to pay almost $300 million in compensation to Victorian taxi drivers.

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The state government says it supports the taxi industry but will not be changing legislation.

“We’ve got strong support for the taxi industry, including providing access to priority rank and hail arrangements,” Minister Felix Ellis said.

Minister Felix Ellis. Image / Pulse

“We don’t have any plans in terms of changing any financial arrangements with the taxi industry.”

Currently, Tasmania has 428 perpetual taxi licences, 107 owner-operator licences and 57 wheelchair-accessible taxi licences.

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