The ATO has finalised a number of its rulings (GST Ruling and several Income Tax Determinations) relating to the application of the tax laws for Bitcoin and similar crypto-currencies. The ATO says all these rulings have application to tax periods before their date of issue (i.e. 17 December 2014) as they discuss laws that were already operative. That is, they are retrospective in application.
CabFare welcomes the Recommendations of the Final Report of the Financial Systems Inquiry (AKA “Murray Inquiry”) with respect to Surcharging on Card Transactions. After a 12-month inquiry the Committee reported in December 2014 and one of its areas of recommendation to the Government for reform was Credit Card Regulation (Chapter 3 of the Report). The Treasurer in commenting on the report signaled this as a priority area for the Government to address.
CabFare supports the thrust of the Inquiry’s recommendations on Card Regulation.
This is the third in CabFare’s series exposing Uber’s strategy. Uber's actions towards Regulators worldwide have exposed the Regulator has no clothes. They are “altogether naked as the day that he was born” in dealing with an aggressive, well resourced new entrant with a strong social media campaign.
We have heard it said that Uber’s only innovation is that they have dared to challenge the authority of the Taxi Regulators and so far we think Uber is a nose ahead of the Regulators.
Uber isn’t a disruptive technology; it has a very simple business model premised on four pillars:
On Saturday 31 January 2015 the Australian Financial Review (AFR) published an article under Ben Potter’s byline that:
Obviously Uber was doing “high 5s” at this apparent turnaround by Graeme Samuel the Chair of the TSC. Particularly given his previous Putin like hairy chested position on Uber’s operations in Victoria and the impending prosecution of 80 of its drivers by the TSC.
Information obtained by CabFare indicates the article may overstate the position in its rush to endorse Uber.
The recent outrage over Uber’s use of “surge” pricing during the Sydney siege incident on 15 December highlighted the use of pricing algorithms as a response to peak demand in taxis.
Uber’s pricing tools automatically increased fares during that incident. The fact that it took Uber 10 days after the event to issue an apology simply reflects a company lacking a strong moral compass. Putting to one side Uber’s behaviour in Sydney this should not be used as a reason to discredit the use of flexible fare and pricing solutions to drive innovation in the industry.
Uber’s use of “surge” pricing at other times has highlighted the benefits of pricing algorithms to respond to peak demand.
CabFare believes that the taxi industry and its regulators must:
Unless pricing and demand management is tackled, the Taxi industry will lose the fulfillment debate and UberX will become legalised.
We all know of Uber. We all have an opinion filled with love, hate or indifference. It is becoming ubiquitous with a trending App, public notoriety and over inflated valuations as investors rush to plug its hemorrhaging cash flow.
TechCrunch reported on 4 December 2013 that Uber was generating US$1.0billion of fares worldwide which TechCrunch estimated Gross Fee revenues for Uber of US$213million. Uber has a significant spend on staff and marketing in its land grab to tie up as many drivers in as many territories as it can, while also being challenged by a raft of competitors, regulators and legal challenges in many countries.
To put that worldwide US$1.0billion of fares in context, that is less than the fares processed by Cabcharge in Australia alone in fiscal year 2014. By modeling Uber’s current performance worldwide using the November 2013 data, and the reported comments by the CEO in an interview with the Wall Street Journal on 4 June 2014 we conclude that:
Do taxi apps deal with the problem of availability in peak times? The short answer is NO, they don’t and NO they can’t. They face the same fulfillment problem that taxi networks do.
At CabFare we continually monitor the payments market and occasionally come across some interesting credit card fraud articles. "Brazilians in the Russian Underground" talks about compromised payment systems in Brazilian petrol stations during the FIFA World Cup from June to July 2014.
YOXIMO’s enhanced features include:
From 1 August 2014, the use of signatures to authorise Australian-issued credit and debit cards at a Point of Sale (POS) will be phased out and replaced by mandatory PIN authorisation. To ensure a smooth transition for Australian businesses, the payments industry is rolling out an intensive campaign to educate merchants and consumers.
Subscribe to the CabFare newsletter and receive our most popular blog posts straight to your email
Phone: 1300 721 966
Fax: 03 9600 9095
National Billing Group Pty Ltd t/a CabFare
© CabFare. All Rights Reserved.