The state’s pricing regulator is preparing to look at the maximum fares payable by passengers for catching a cab on the street.
The Essential Services Commission has released a consultation paper seeking feedback from taxi users and other stakeholders on its approach to reviewing the maximum fares that can be charged for ‘unbooked’ taxi services.
Unbooked services are where passengers hail a vehicle from the street or take a taxi from a rank, while booked services are arranged prior to travel through an app, online or over the phone.
The commission’s director of pricing, Marcus Crudden said that competition in unbooked taxis is not as strong as pre-booked services.
“Consumers hailing a vehicle in the street can’t shop around for a better deal, so there is less competition and fewer pricing options for passengers.”
“Our review aims to protect passengers who use rank and hail services from paying too much” he said.
Mr Crudden said legislation in 2021 had broadened the scope of the commission’s taxi fare reviews.
“We can now consider the Fair Work Commission’s annual wage review and the commercial viability of operating a taxi service, as well as the financial viability of the industry, which has been a feature of previous taxi fare reviews,” he said.
“Stakeholders can provide feedback on the information we should consider in each of these areas.”
The review will only look at fares for trips that start in metropolitan Melbourne and urban and large regional zones which include Geelong, Ballarat, Bendigo, Frankston, Dandenong and the Mornington Peninsula.
Stakeholders can have their say via Engage Victoria until 16 March 2022.
The commission will then release a draft decision proposing maximum fares in June 2022, providing another opportunity for feedback. The final decision is expected to be released in September 2022.
