Uber now illegal in Victoria

After a court ruling last week, Uber is now effectively illegal in Victoria after Nathan Brenner, an Uber driver, was found guilty by a magistrate of operating a hire car without proper accreditation.

The magistrate fined Brenner, the first of 13 Uber drivers to face court, $900 without conviction.

It sets a legal precedent in the state which is likely to follow in the other 12 cases, after the drivers were snagged in an undercover investigation staged by the Taxi Service Commission.

Uber is present in most major Australian cities and has operations in almost 70 countries globally. Customers download an app and can see where the closest drivers are on a app, then rate their service afterward for all to see.

The San Francisco-based technology company has confirmed it will appeal the ruling and continue running in Victoria.

There are around 6000 UberX drivers in Victoria, plus a smaller number of representatives for Uber Black -- the upmarket, luxury version of the service.

'We will continue to support Mr Brenner as he appeals the decision," said Uber in a press statement after the sentence was handed down.

"It is widely acknowledged that the current legislation could not have contemplated technology such as Uber – the legislation clearly needs to be updated," said the multi-billion dollar ride-sharing company, which reportedly pays for most court costs facing its drivers.

The Victorian government's public transport minister, Jacinta Allen, said Uber would be foolish to flaunt the law.

"I'd encourage Uber to think about the position they're putting those drivers in if they continue down this path while this matter continues to remain unresolved," she told media last week.

Her ruling Labor party is conducting a government inquiry into Uber's operations in Victoria, the outcome of which is likely to be impacted by this latest ruling.

The Chair of the Taxi Services Commission, Graeme Samuel, who is staunchly opposed to Uber as it often undercuts traditional taxi fares while providing (anecdotally) better service, told local radio station 3AW that Uber should be punished.

"Uber have chosen to ignore the law, that's their approach," he said. "That's just not the way that our society works."

Currently Canberra is the only state in Australia to have made UberX legal, with other states still ruminating over legislation.

Have you used Uber? How does it compare to regular taxis, and what are your thoughts on the Victorian ruling? Have your say in the comments section below.