Canberra becomes the world's first capital city to legalise Uber
Canberra has become the world's first capital city to legalise Uber and other ride-sharing services. Under the new laws,  to be announced later today, the Australian Capital Territory will regulate ride-sharing networks such as Uber and goCatch, and the changes will come into effect late next month. Regulation will be introduced in two stages. The first will require drivers to be registered and accredited, and to undergo criminal checks, regular health checks, be drug-free, and have a zero blood alcohol level. Booking services will have to have a﻿ customer complaints mechanism, and surge pricing will be banned during emergencies. Under the second stage, ride-sharing drivers will ﻿ need property insurance and compulsory third-party insurance for their vehicles.

Chief Minister Andrew Barr and Greens Minister Shane Rattenbury will announce the plans as part of a review of Canberra's taxi industry on Wednesday, making the ACT the first Australian jurisdiction to regulate ride-sharing.

Uber's arrival will see major concessions to the taxi industry including cuts to license fees twice by 2017, seeing a drop from $20,000 per year to $5000. Fees charged to hire car operators will also fall.

Canberra's transport network is set for a major shake-up from October 30 as Uber begins local services and the ACT government moves to introduce accreditation and insurance rules for ride-sharing businesses.

In a two-stage process, interim arrangements will come into force from the end of next month allowing ride-sharing drivers to take smartphone application and phone bookings. Only taxis will be allowed to pick up passengers from ranks and on the street.

Criminal history and background checks will be required for anyone behind the wheel. Taxi, hire cars and ride-share vehicles will all undergo safety inspections and drivers will be subject to five-year health assessments. The government will also introduce compulsory third party and property insurance requirements for all ride-sharing cars.

After new legislation is passed, stage two will see driver accreditation requirements and taxis and ride-sharing services regulated under new transport booking services rules.

Drivers will theoretically be able to take bookings from any company, but where a service restricts drivers from taking bookings from competitors, they will be considered employees and will be covered for workers' compensation and other benefits. Some drivers who don't own their vehicle could also be covered for workers' compensation.

Some rules for taxi drivers will be scrapped, including requirements for drivers' uniforms. Restrictive training requirements be scrapped and operators will no longer have to demonstrate their capacity to meet standards and financial viability.