Uber admits to misleading Australian users about ride cancellation fees

Uber admits to misleading Australian users about ride cancellation fees

Updated

A $1.1 million refund for a ride cancellation fee has been refused by the Australian Transport Safety Bureau (ATSB) after it was found it advertised on a website that included a link to a local taxi service.

The ATSB refused to investigate whether the fee was also advertised on the Australian Taxi Association (ATA), the US Taxi Association (USTA) and the Australian Taxation Office (ATO).

As part of a post on the ATSB website, the Administrator for Taxation and Insurance (ATO) stated the fee itself was not “in the public interest” and was “too obvious to ignore.”

“There are details about the charge that need to be adjusted on a case-by-case basis, and that is exactly what the ATO and Taxation Office should be doing,” the administrator said.

“The ATO and Taxation Office should simply be serious about addressing these issues while the government’s copies of their tax returns are being released for review.”

The ATO said the fee was not a reference to the Australian Taxi Association, USTA or ATO.

“It’s their view that the ATO is having a hand out by clicking the link to provide the correct information,” it said.

“We do not remember or offer refunds in any way, shape or form to individuals that we do not consider sympathetic to taxi drivers, business owners or those who have used our services.”

The ATO says it does not “collect and publish information referring to the ATO, Taxation Office or ATO.”

The ATO also declined to comment on the ATO’s advice to Australians to carry on using Uber or traditional taxis.

But a study by Transport for NSW found taxi drivers often use taxis for two to three-hours a night.

It said they typically end up sitting on the back of a car and driving at least 25 kilometres an hour.

Fare is more likely to be charged at peak hours than other modes of transport

The study, based on 5,000 taxi drivers and their average earnings, was carried out last year by the Australian Taxi Association.

Its analysis found there was a strong correlation between average taxi fares and average commute time.

“Despite a strong correlation between taxi fares and average commute times, to establish an association between taxi fares and average commute times makes it difficult to provide an accurate representation of the number of drivers per year,” the study concluded.

“This is because the association between taxi fares and average commute times is stronger in places where the average commute time is less than 18 hours,” it said.

“While the majority of taxi drivers are all working in lower-skilled occupations, the data does not explicitly support this conclusion.”

Mr Justice Lord Black said the ATO did not have the power to deny a refund of a $1.1 million refund being refused, but it would take some time.

“What’s obvious from the lack of evidence on this question is that taxpayer right to refund is not equal protection under the law with respect to the taxpayer’s right to cancel their ticket if the cancellation is for untimely reasons, even if it is commensurate with the cost of their ticket as described in the fine notice,” the judge said.

The ATO did not commit to providing evidence to back its claim that estimates of the tolls paid by drivers were inaccurate.

Topics: law-crime-and-justice, taxi-culture, laws, australia

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