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Ridesharing legalised in Victoria, but every trip has a $2 catch

Victorians can now catch their UberX ride with a clean conscience, but the State Government is charging a $2 levy for every trip to help the transport industry "transition".

Claire Reilly Former Principal Video Producer
Claire Reilly was a video host, journalist and producer covering all things space, futurism, science and culture. Whether she's covering breaking news, explaining complex science topics or exploring the weirder sides of tech culture, Claire gets to the heart of why technology matters to everyone. She's been a regular commentator on broadcast news, and in her spare time, she's a cabaret enthusiast, Simpsons aficionado and closet country music lover. She originally hails from Sydney but now calls San Francisco home.
Expertise Space, Futurism, Science and Sci-Tech, Robotics, Tech Culture Credentials
  • Webby Award Winner (Best Video Host, 2021), Webby Nominee (Podcasts, 2021), Gold Telly (Documentary Series, 2021), Silver Telly (Video Writing, 2021), W3 Award (Best Host, 2020), Australian IT Journalism Awards (Best Journalist, Best News Journalist 2017)
Claire Reilly
2 min read

Good news, Victorians: You might have been using UberX for some time but, from today, you can do so with the full tick of approval from the Victorian State Government.

Now the bad news? You'll be charged $2 per ride for the privilege of going above board with ridesharing from now on.

The Victorian Government today announced an overhaul of the current system to bring in a single licensing system covering ridesharing cars, taxis and hire cars. The news means services such as UberX will now be legal and regulated across the State.

However, the new system will also see "all commercial passenger vehicle providers charged a levy equivalent to $2 per trip" in order to help fund the move to the new system. The Government says this will go towards compensating current taxi license holders as they "transition" to the new world order.

Uber has welcomed the move, saying it's a "direct result" of half a million Victorians embracing ridesharing as passengers, and thousands of locals jumping on board as drivers.

However, CNET understands Uber is already calling on the Government to release its modelling for the introduction of a $2 levy on rides, including details of who in the industry will see these payments.

While it currently only offers ridesharing in Sydney, GoCatch also welcomed the news, saying it would launch in Victoria once the changes were in place.

"We have been working with state leaders for months and welcome legislation that enables more efficient, fair and cost effective transport," GoCatch CEO David Holmes said in a statement.

"These changes are more radical than those that have been introduced in other Australian states and it appears that the government has gone to great lengths to level the playing field to advantage the area's best drivers, whether they drive a traditional taxi or a their own car for ridesharing."