Melbourne Airport creates UNEVEN playing field

Drive A2B magazine
5 min readSep 15, 2017

August 2017 saw Melbourne Airport representatives (Michael Meggs and Matthew Stirling from Operations, Parking and Ground Transport) meet with VHCA President Rod Barton and Vice President Andre Baruch.

Melbourne Airport formally advised them that they had entered into a “confidential commercial arrangement” with UberX that allowed UberX hire cars access to a holding bay and a rank at Melbourne Airport.

Rod Barton advised the meeting that :-

Under the new legislation Uber will just be another hire car operator.

No new licences have been issued to drivers as yet, therefore Uber drivers were still illegal!

Until such time as a new licencing structure is implemented by the Taxi Services Commission (TSC), the UberX service remains in breach of the Transport Act.

Melbourne Airport advised that they were open to discussions with all interested parties who wish to operate an “on demand” hire car service.

They said that they were not trying to protect one particular operator or give one particular operator a competitive advantage, yet they did not accept the VHCA’s assertions that they have already given Uber a massive advantage!

The majority of the hire car industry pay a pro-rata hourly rate, up to $30, to facilitate a pick up of a client at Melbourne Airport.

Dedicated Uber Ranks

On 16 August, 2017, Melbourne Airport announced that two ranks had been created and dedicated to UberX. This is in addition to the three ranks already existing for Uber Black vehicles.

Melbourne Airport now has a Taxi Holding Bay where taxis must queue and wait to get up to the terminals; VHA/VHB cars can also wait there for free while waiting for their client’s plane approach and have three parking areas close to the forecourt which they share with Uber Black

Now UberX get two ranks and their own holding area.

It has been reported that Melbourne Airport has provided access to ride sharing providers effective 16 August.

But this is not true. Melbourne Airport has set up this new system for UberX ONLY.

“There is dedicated rideshare infrastructure in place for UberX drivers to get to and from the Airport without affecting the Airport’s forecourt traffic flow”, said a Melbourne Airport spokesperson, when we recently questioned them.

UberX are the newest players at Melbourne Airport in comparison to taxis and hire cars, and they appear to be getting the best hand dealt to them.

Not fair to the oldies in the industry

The stalwarts of the Victorian commercial passenger vehicle industry, taxis and hire cars, are being overlooked, forgotten, ignored!

The actions by Melbourne Airport, in allowing Uber cars to queue in the forecourt for a minimal flat fee of $4.40, is unequivocally an immense advantage to Uber hire cars. This will see a reduction in clients to the rest of the Victorian commercial passenger vehicle industry.

Victorian Taxi Association (VTA)CEO Georgia Nicholls says ”With the legalisation of ride sharing services, their access to the airport is inevitable and the conditions that have been imposed on them are fair”.

But the conditions imposed on Uber drivers are more fair than those currently in place for taxi and hire car drivers. Is it fair when one side is more heavily burdened than the other?

The simple act of giving parking access in the forecourt to Uber hire cars is further evidence of commercial advantage given to Uber over all other hire cars.

It is certainly not a level playing field for the Victorian commercial passenger vehicle industry at Melbourne Airport.

All VHCA members believe that the “meet and greet” service they offer their customers is paramount to their businesses!

Now that there are UberX ranks in place, VHA drivers must actually walk past/through these ranks to get to and from the terminal.

VTA CEO Georgia Nicholls says, “In an environment where ride sharing services have been legalised, Melbourne Airport must make provision for the access of all legal commercial passenger vehicle services.”

Uber is the only ride sharing business at Melbourne Airport

But Melbourne Airport advises that a VHA plated hire car cannot pickup from the UberX rank. All VHA plated cars have to use the VHA area.

Then what happens when a VHA operator adds another vehicle to his fleet? TSC no longer issues VHA plates — the new vehicles will have regular private licence plates. Therefore Melbourne Airport will not be able to differentiate between a newly licensed VHA vehicle and an Uber vehicle.

Yet Melbourne Airport, at this stage, has made no provision for access of these vehicles. Perhaps they can utilise the forecourt where Uber vehicles wait.

How does Melbourne Airport know which vehicles have accessed the Uber areas?

They are not charging the driver’s e-Tags (as they do for taxis); they do not have a record of Uber drivers’ licence plates; they don’t require the vehicles to display signage.

Is Uber just paying the Airport a fixed amount each month and are drivers charging $4.40 to their airport customers?

When Melbourne Airport was queried about the method of payment that has been put in place for the collection of the $4.40 fees, a spokesperson responded that “Melbourne Airport has a commercial passenger agreement in place with Uber for access fees”.

Perhaps they are relying on Uber to tell them the number of vehicles that have collected from the Airport. Perhaps Uber is just paying a fixed monthly amount.

So, many questions and so few answers.

VHCA believe Melbourne Airport has obligations under their licence agreement, so for the above reasons they have instructed Mann Lawyers to make a formal complaint to the ACCC (Australian Competition and Consumer Commission), to investigate and advise options that can be pursued.

Drivers react to announcement of Uber at Airport

Many drivers took matters into their own hands on 16 August, joined forces and protested about the introduction of the specific waiting area and pickup up rank on the forecourt for UberX vehicles.

Taxi drivers are also very concerned about Uber drivers being allowed to tout at the Airport.

Apparently there are many people who feel the recent events at Melbourne Airport by taxi drivers “blockading” areas, were only done to disadvantage customers.

These people believe that it was all about having to compete with new competitors. How we all wish it was that simple!

Unfortunately, it is the public who have not been sufficiently made aware of the plight of the taxi and hire car owners and drivers.

But we get it. The taxi and hire car drivers are terribly frustrated, and some of them are only just now coming to the realisation of the impact of the Commercial Passenger Vehicle Industry legislation.

UberX drivers are not required to display Uber branded signage while accessing Melbourne Airport.

So, what is to stop any clean vehicle with a smartly dressed driver, from going into the Forecourt and collecting passengers? Oh, that’s right, that’s called touting and that’s illegal!

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