Despite receiving a report into the industry more than six months ago the Victorian government is yet to determine whether to legalise the service.

The ACT legalised Uber in October and the NSW and Western Australia state governments have said they would legalise the service.

Queensland will finish a review into the industry in August this year.

Slower and slower

Uber Australia New Zealand general manager David Rohrsheim said while Prime Minister Malcolm Turnbull was encouraging a more agile and innovative economy it appeared government decision-making took longer and longer.

Uber Australia New Zealand general manager David Rohrsheim said while Prime Minister Malcolm Turnbull was encouraging a more agile and innovative economy it appeared government decision-making took longer and longer. Peter Braig

"The pace that government makes decisions is getting slower and slower," Mr Rohrsheim said.

"The political climate these days means it is slower. The Prime Minister last year encouraged agility and we present that opportunity. We get it. There's an opportunity [with Uber] if you are serious about innovation. Politicians also like to talk about jobs, well we have created opportunities to make money for 20,000 people."


Deloitte Access Economics director Ric Simes said uberX was both transforming and growing the point-to-point transport market.

"It grows the [ridesharing] pie but it also provides a different service," Mr Simes said.

"While uberX is only providing a relatively small proportion of services compared to the taxi industry, approximately 6 per cent of total rides in the point-to-point market, it is delivering significant benefits for users.

"With the likelihood that ride sharing will continue to grow in popularity, the consumer benefits we have identified may be greater."

The report examined uberX trips in August 2015 and found Uber's services were 20 per cent cheaper than the equivalent taxi fare, including its "dynamic" pricing (which is when consumers pay substantially more for the services in times of peak demand).

The report found the average weight time for an uberX was 4.46 minutes, compared with 7.79 minutes for taxis.

Uber launched its premium licensed hire car services UberBLACK in Australia in 2012 before launching uberX ridesharing service in Sydney and Melbourne in April 2014.

It has since rolled out the service to Brisbane, Perth, Canberra, Geelong and the Gold Coast.


In August, there were more than 1.2 million uberX rides across Melbourne, Sydney, Brisbane and Perth or about 39,000 rides per day.

Deloitte estimates that based on current growth rates uberX will conduct 14.5 million rides per year. There have been 10 million since its inception in 2014.

Uber takes 20 per cent of the trip fare and drivers are responsible for maintaining their vehicle, costs to operate the vehicle and associated taxes.

The report said drivers received $260 million in fares per year, excluding the licensing fee paid to Uber.

Taxis improving digital offering

The report highlighted the potential for Uber to grow – it had just 6 per cent of the ride sharing market in August.

"In some markets it is 30 per cent to 50 per cent," Mr Simes said.

"Are we going to go that far here? It depends on a lot of the particular circumstances and attitudes and how strong the alternatives are."


The taxi industry is improving its digital offering to consumers by developing online booking systems and apps.

Uber has caused enormous backlash from the taxi industries around the globe, which are upset at paying expensive taxi plate fees to governments.

The report showed there were 12,680 active Uber drivers in Australia compared to 68,152 taxi drivers. However average hours for Uber drivers are much less at 19 hours per week compared to 45.6 hours for a taxi driver.

"As the uberX platform permits flexible work hours, drivers may use uberX to supplement their income and avoid underemployment," the report said.

"More than $4 million in driver partner earnings went to the 30 postcodes with Sydney's highest unemployment in uberX's first 12 months of operation."