A verdict is expected today in a test case against UberX driver Nathan Brenner. This is why it's important not just for drivers and cabbies, but also for consumers.
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Why is this court case important?
Even though Uber has been operating in Melbourne for two years, this is the first time the legal system has decided whether or not driving a car for UberX is a criminal offence.
Nathan Brenner's case has been winding its way through the Melbourne Magistrate's Court since December 2014 and has been delayed by several adjournments. The taxi industry regulator, the Taxi Services Commission, first caught him in mid-2014.
Who is Nathan Brenner?
Nathan Brenner is an UberX driver. He just happens to be one of 12 people people caught in the first TSC sting. His defence barrister, Peter Haag, suggested to the court that Mr Brenner be dealt with first as a test case. So whatever happens to Mr Brenner will happen to the other drivers.
It also turns out Mr Brenner has an interesting background. He worked in the music industry managing rock bands Split Enz and Men at Work. He once took singer Daryl Braithwaite to court in a royalties dispute.
What has he been charged with?
Originally, Mr Brenner was charged with breaching section 158(1) of Victoria's Tansport (Compliance Miscellaneous) Act, which carries a penalty of $7583.50. This section makes it an offence to operate a commercial passenger vehicle without a licence, permit, or other authority. However, during the court process Mr Brenner's barrister argued the charge was not worded correctly, so the TSC added more offences to include Mr Brenner as the owner of the vehicle and as the driver of the vehicle. It also added a charge of breaching section 165(1) of the act, which makes it an offence to drive a commercial passenger vehicle without accreditation. These new charges add up to a potential fine of $24,267.
How can a UberX driver afford these fines and a court case?
Fairfax Media understands Uber has been paying the cost of fines issued to drivers around Australia. There is also a strong suspicion that Uber has been paying the cost of Mr Brenner's barrister Peter Haag, although Mr Brenner and Uber refuse to comment. However, in court Mr Haag has indicated that he also represents the other UberX drivers, suggesting he was not just Mr Brenner's client.
What happens to UberX drivers?
To date UberX drivers have been operating in the black market. They have been doing something the regulator believes is against the law, but it has not yet secured a conviction. The TSC has probably been waiting to see what happens with this case before going after more drivers. If Mr Brenner is found guilty, that means all UberX drivers are doing something illegal and could end up with a criminal record. Although there were only 12 people attached to this case, the TSC has charged at least 80 UberX drivers.
If Mr Brenner is found not guilty, it means the state's laws cannot stop UberX. The taxi industry won't be pleased.
Isn't the Victorian government going to allow UberX?
Things are moving slowly as the government has probably been waiting on this decision. It must also work out what to do with the people who bought perpetual taxi licences for hundreds of thousands of dollars in the past, and the people who pay $22,000 a year for annual licences.
There is also the question of whether or not UberX drivers are employees and have to pay GST.
What about other states?
A similar attempt by NSW authorities to charge 24 UberX drivers failed "due to evidentiary issues", according to a Department of Transport spokesman. A recent discussion paper noted authorities struggled to get information stored on Uber's overseas servers.
