After the huge news that Uber would finally be bringing UberX to Adelaide and South Australia, the ride-sharing giant has withdrawn.
According to The Advertiser, Uber has said that the initial costs for drivers to sign up are beyond huge, and it’s just too expensive for it to be viable.
General state manager Tom White said drivers wouldn’t be able to share rides under the state government’s proposed framework.
In an official announcement to PEDESTRIAN.TV, an Uber spokesperson said this:
“We have reviewed the Government’s proposal and under the proposed framework it appears that South Australians would have to pay more than seven hundred dollars in unnecessary fees and wait months before they could start sharing rides.This would simply make ride-sharing unviable for the vast majority of South Australians who want to access flexible work by sharing rides in their private car.If the Government wants South Australians to be able to access flexible work by sharing rides come July 1, we urge them to remove unnecessary costs and time delays from their proposal.”
Comparatively, in NSW it costs ride-sharing drivers $45 and takes a week. In the ACT, it costs $100 and takes a matter of days.
They said that had surveyed around 400 of the applicants, with 90% saying they wouldn’t start up if fees were more than $200.
The state government has rejected Uber’s estimations, saying they’re “completely inaccurate”. Transport Minister Stephen Mullighan did admit that there were “legitimate concerns about time taken to process new applications, which we are working through with the industry’”.
But, he said costs for potential drivers were around $600, which he said were comparable with the $500 that was charged in the ACT.
At the moment, there’s a lot of conflicting information floating about — we’ll update this story as more information comes to light.
Source: The Advertiser / Uber.
Photo: Adam Berry / Getty.