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Ride Sharing in NZ
Legal Overview

Carpooling vs Ride-Sharing for Profit
Image by Tingey Injury Law Firm
Carpooling (Cost-sharing):

  • 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.

  • Under the Land Transport Act 1998, this is legal without needing a Passenger Service Licence (PSL).

  • The trip must be one the driver was already going to make.

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Ride-sharing for profit (Uber, Ola etc):

  • 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
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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 -we Recommend Cove

  • Drivers should inform their insurer that they might engage in carpooling for work, school etc.

  • If you carry a Passenger Endorsement License, you require a rideshare-specific insurance, registration etc.

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Carpoolin App Responsibility

  • Give Users information on what qualifies as carpooling is here in NZ and what parties involved need to know (This page).

  • Encourage Users to engage with one another, either in the App or IRL to plan the logistics of their Trip.

  • Ensure Users acknowledge they are not being pressured to take Trips with others knowingly

  • As always, understand caveat emptor and that you are responsible for your decisions.

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​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.

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More details can be found here; NZTA Waka Kotahi
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