There are also some in government who have grown tired of inaction, given its widespread use in Melbourne and the legalisation of ride-sharing in NSW and the ACT. Earlier this month the Magistrates Courts ruled that Uber was illegal. The Andrews government has been looking at if and how it can be regulated in Victoria and the impact it may have on the traditional taxi industry. It ordered a review of the industry when it came to government and set up an industry advisory group to consult with. A report was handed to it earlier this year. The Baird government on Thursday announced it would regulate Uber and set up a $250 million transition fund.

The fund, which is to be funded by a $1 levy on all taxi and ride-sharing trips will help fund payments of $20,000 to owners of taxi licence plates in perpetuity. The one-off payment will be capped at a maximum of $40,000 for owners of multiple plates



Transport Minister Jacinta Allan said Victoria would "look very carefully" at the model NSW had adopted, including examining how the compensation would work. "But Victoria has a different industry structure, a different regulatory regime for taxi and hire car services, and we need a solution that works for Victoria," Ms Allan said. "We are continuing to work through the complex issue of ride-share services carefully and we are not going to rush to a decision that doesn't work for passengers or the industry." Transport Minister Jacinta Allan says the government is still considering options for ride-sharing Credit:Joe Armao More than half a million people have used Uber in Victoria, with 6500 drivers having operated in Melbourne, an Uber spokesman said.

He said the decision in NSW showed the government was listening to the people. "This seems to be in stark contrast to the Victorian government, who have not been able to provide any clarity or certainty to the industry, nor any timeline as to when they plan to do so," he said. Uber is particularly frustrated given Ms Allan received recommendations on ride-sharing regulation in July. "The time has come for Premier Andrews to leave the excuses behind and remove the ambiguity for ride-sharing users, drivers and all industry participants. We call on the Premier to put the travelling public of Victoria first and introduce sensible ride-sharing regulations without further delay." Shadow transport minister David Hodgett said once again NSW Premier Mike Baird was leading the way.