There are calls for popular ride-sharing service Uber to be formally investigated, after it admitted deliberately evading authorities in Australia and overseas trying to catch out its drivers before the service was legalised.
It sounds like the plot line of a cheap airport thriller: to counteract authorities trying to book Uber rides to build a case against the service, the fledgling company created software to identify them, and then sent them fake versions of its app populated with "phantom" cars that would never arrive.
More BusinessDay Videos
- Video duration
- 02:56
Uber ordered to pay GST
Uber ordered to pay GST
A Federal Court judgment on Uber raises GST issues over the entire sharing economy. Vision courtesy ABC News 24.
Up Next
ASX winners and losers - a snapshot
- Video duration
- 00:43
- Video duration
- 00:43
ASX winners and losers - a snapshot
ASX winners and losers - a snapshot
The stand out listings traded on the ASX captured at key moments through the day, as indicated by the time stamp in the video.
Up Next
Tony Abbott's defence spending legacy
- Video duration
- 01:57
- Video duration
- 01:57
Tony Abbott's defence spending legacy
Tony Abbott's defence spending legacy
Abbott, when he was opposition leader, pledged to increase defence spending to 2 per cent of GDP - a promise the coalition is keeping. Michael Pascoe comments.
Up Next
Losses all round in media mayhem
- Video duration
- 01:59
- Video duration
- 01:59
Losses all round in media mayhem
Losses all round in media mayhem
Private equity firms TPG and Hellman and Friedman walk away from Fairfax and the Ten Network goes into receivership. Michael Pascoe comments.
Up Next
Network Ten enters into receivership
- Video duration
- 03:51
- Video duration
- 03:51
Network Ten enters into receivership
Network Ten enters into receivership
PPP Advisory will now look to sell Network Ten, with Lachlan Murdoch and Bruce Gordon looking to purchase the network once media laws are changed by the government. Vision courtesy: ABC News 24.
Up Next
Trump talks trade with South Korea
- Video duration
- 01:30
- Video duration
- 01:30
Trump talks trade with South Korea
Trump talks trade with South Korea
US President Donald Trump welcomes South Korean President Moon Jae-in and his wife to the White House and says the two leaders will talk about North Korea and trade.
Up Next
A weaker quarter for the AUD
- Video duration
- 02:57
- Video duration
- 02:57
A weaker quarter for the AUD
A weaker quarter for the AUD
The AUD is closing the quarter weaker against the EUR, GBP and NZD, while small gains have been seen against the USD and JPY. Can this continue as we enter the new quarter while key debates still remain unresolved? (This video was produced in commercial partnership between Fairfax Media and IG Markets).
Up Next
Mohammed bin Salman rises to Crown Prince as oil falls
- Video duration
- 01:48
- Video duration
- 01:48
Mohammed bin Salman rises to Crown Prince ...
Mohammed bin Salman rises to Crown Prince as oil falls
There are also concerns about the impact of a change of succession in Saudi Arabia on the oil market, David Pollard reports.
Uber ordered to pay GST
A Federal Court judgment on Uber raises GST issues over the entire sharing economy. Vision courtesy ABC News 24.
Key to its efforts was the so-called "greyball" program, designed to evade authorities trying to build cases against Uber, by identifying the accounts of state authorities – based on data collected from its app and other techniques.
Uber has become famous for disrupting the markets it enters, particularly regulated taxi industries.
But news of the greyballing tactics go much further, showing that before Victoria and NSW decided to legalise the service, Uber was not just operating outside the law, it was actively combating efforts to bring it into line.
NSW Taxi Council chief executive Roy Wakelin-King called for an investigation into whether Uber attempted to frustrate or block a government investigation.
"We are disturbed by the allegations," Mr Wakelin-King said. "Compliance with the law is a fundamental part of doing business in Australia.
"Anyone impeding a lawful investigation should be properly investigated and if found guilty be prosecuted."
Australian Taxi Industry Association chief executive Blair Davies said there had long been suspicions that Uber was engaging in black ops-style techniques.
"In 2014, Victorian authorities cracked down on Uber, and they were successful for about 24 hours," he said.
"Queensland enforcement officers were complaining they'd been black-banned off the [Uber] system.
"Quite frankly, the state governments and the regulatory authorities didn't do their homework and what we've seen overnight are revelations that are absolutely outrageous."
The Victorian government introduced legislation to legalise Uber last month.
Public Transport Minister Jacinta Allan did not respond to questions about the state's efforts to sting Uber drivers before the decision was taken to legislate, and regulate, ride-sharing, and whether authorities' efforts to enforce the law had been frustrated.
She said the government had moved to legalised Uber to create a "level playing field" between the app and taxis.
"Not only will this reduce fares and improve services, safety and choice for passengers – it will regulate Uber and make them more accountable for their actions," she said.
"That's why it is so critical the legislation is passed and these safeguards are brought into place as soon as possible."
In July 2015, 24 Uber drivers had prosecutions brought against them by the NSW government, but NSW Roads and Maritime Services said it had to drop the prosecutions because its investigation had been hampered by what it called "evidentiary issues".
Mr Wakelin-King says the Taxi Council was advised by Road and Maritime Services that a number of Uber accounts held by government officers had been cancelled between 2014 and 2015 when the ride-sharing service remained illegal in NSW.
Uber was only made legal in NSW after the passage of new laws in December 2015.
Documents released under freedom-of-information laws show that Queensland public servants believed covert investigations of Uber were frustrated by the company's blocking technology.
Internationally, there have been multiple examples of taxi drivers harassing or even assaulting Uber drivers, and an Uber spokesman told Fairfax its greyball program also protected drivers from physical harm.
"This program denies ride requests to users who are violating our terms of service – whether that's people aiming to physically harm drivers, competitors looking to disrupt our operations, or opponents who collude with officials on secret stings meant to entrap drivers," he said.
"State and territory governments right across Australia have recognised that ride-sharing has a rightful place as part of our nation's transport mix."