CARPOOLIN
Ride Sharing in NZ
Legal Overview
Carpooling vs Ride-Sharing for Profit
Carpooling (Cost-sharing):
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If drivers share the cost of the trip (e.g., fuel, tolls) and are not making a profit, it is generally not regulated as a transport service.
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Under the Land Transport Act 1998, this is legal without needing a Passenger Service Licence (PSL).
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The trip must be one the driver was already going to make.
Ride-sharing for profit (Uber, Ola etc):
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If drivers profit from the ride, even slightly, this is considered a small passenger service and is subject to strict regulation.
Legal Categories in NZ
Category | Cost-Sharing (Carpooling) | For-Profit Ride Sharing |
|---|---|---|
Definition | Driver shares trip costs (e.g., fuel, tolls) only | Driver receives payment beyond cost, for profit |
Legal Status | Legal under Land Transport Act 1998 | Requires compliance with regulations |
Passenger Service Licence (PSL) | ❌ Not required | ✅ Required |
P Endorsement (Driver) | ❌ Not required | ✅ Required |
Vehicle Certification | ❌ Standard WOF | ✅ Certificate of Fitness (CoF), SPSV sticker |
Insurance | ✅ Advised (disclose carpool use) | ✅ Required (commercial rideshare policy) |
Insurance Requirements
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Cost-Sharing: Drivers should inform their insurer and confirm that cost-sharing is covered.
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Profit-Making: Requires commercial or rideshare-specific insurance to ensure passenger safety.
Carpoolin App Responsibility
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Provide transparent pricing and cost-sharing breakdowns
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Display terms & conditions confirming nature of trips (cost-sharing vs for-profit)
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Ensure driver and passenger acknowledgement of use case
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Offer tools for route planning, ride-matching, and payment processing (if applicable)
Regulatory Authorities
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Waka Kotahi NZ Transport Agency (NZTA): Licensing and vehicle compliance
→ nzta.govt.nz/commercial-driving/small-passenger-services -
Land Transport Act 1998, Section 70: Cost-Sharing
→ legislation.govt.nz/act/public/1998/0110/latest/DLM434636.html
TL;DR
You can operate without commercial licences if used strictly for cost-sharing.
If payments go beyond covering costs, drivers must comply with small passenger service laws.
Additional details on the topic from NZTA
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