Auckland Transport’s Uber is mad

Press Release – Auckland Ratepayers’ Alliance

The Auckland Ratepayers Alliance says that Auckland Transports proposed ridesharing service will be an expensive white elephant. The Uber-style app will be trialled in Devonport before being rolled out across Auckland. Ratepayers Alliance spokesperson …The Auckland Ratepayers’ Alliance says that Auckland Transport’s proposed ridesharing service will be an expensive white elephant. The Uber-style app will be trialled in Devonport before being rolled out across Auckland.

Ratepayers’ Alliance spokesperson Jo Holmes says, “Why is Auckland Transport getting into the ridesharing business when existing operators like Uber and Zoomy offer a near-identical service?”

“The only point of difference is that Auckland Transport’s service will transport multiple users at once – presumably to keep costs down. But considering existing operators have declined to offer multi-user rides, there’s unlikely to be enough demand for the service to cover its costs.”

“Even Uber hasn’t managed to turn a profit, losing $5 billion internationally last year alone. So, who will foot the bill for this service’s ongoing losses, not to mention the up-front cost of application development? Inevitably, ratepayers will be forced to subsidise the app to keep it afloat.”

“Governments, especially local governments, are bad at running businesses, and shouldn’t try to compete with established firms. Auckland Transport should stick to its core services – improving roads, ensuring buses show up on time, and so on.”

“We’ll be asking Auckland Transport some basic questions, such as how much funding has been earmarked for the service, and has there been a cost-benefit analysis to justify this funding?”

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