Challenges for the industry and regulator

Challenges for the industry and regulator

The inquiry’s reforms raise challenges for the industry. Instead of focusing on protecting licence holders and relying on a flow of temporary, poorly paid drivers, the industry will need to focus on improving services, building a high quality workforce (attracting and retaining experienced drivers) and actively pursuing new markets. Industry participants will need to adopt broader perspectives to achieve these outcomes.

The inquiry’s view is that many current stakeholders may struggle to navigate and exploit the new industry environment. New entrants with a fresh outlook and a focus on customer service, competition and continuous improvement may act as a catalyst for embracing the reforms and building a more dynamic industry. This can only be of benefit to the industry.

Over the course of the inquiry, it has become evident that the industry relies heavily on the current regulator, the Victorian Taxi Directorate (VTD), to ‘fix’ problems such as low driver and vehicle quality. The culture of the taxi industry has been to rely on Government (through the VTD) to impose stricter regulations when problems emerge and then enforce these regulations. Government has acquiesced to this approach. The inquiry’s reforms will require the regulator to perform a very different role in the future.

The Taxi Services Commission will assume the role of regulator following the Government’s response to this Final Report and will be charged with responsibility for implementing any reforms the Government adopts. The Commission will need to establish new regulatory objectives, functions and tasks, and develop a regulatory framework that is much more consumer-oriented and outcomes-focused. This will require a radical shift from the practices of today.

For its part, the industry will need to take greater responsibility for its performance and will need to develop a strong new culture of self-regulation and accountability. The inquiry’s recommended reforms will facilitate this change in culture through network service standards, complaints reporting, an accessible Public Register of industry participants and regularly reported ‘league tables’ of performance.

The benefits for consumers

A strong customer focus – including greater industry responsibility for performance and a willingness to explore better ways of providing services – will ensure that the taxi and hire car industry continues to grow. Over time, more services will be available and reliable, safe and accessible services will be offered by a range of different service providers; from independent individual operators to groups of operators and large and small networks.

Consumers will have a wider range of service providers from which to choose, multiple ways to pre-book services and more options in relation to price, vehicle type and travel experience.

There will be more diversity in the vehicles being used as taxis and hire cars, offering more travel options  especially for people with a disability. More trip types will be available, such as share rides, taxi shuttles and taxi-buses. In parts of regional Victoria, taxis will operate as small buses, filling gaps in the public transport network and providing vital and affordable access to employment, services and recreational activities.

An expanded and vibrant hire car market will operate alongside taxis, expanding the choice of pre-booked point-to-point services available to consumers. Some of these services will be ‘luxury’ services; others will offer different types of service, depending upon what customers want.

People with a disability will have access to reliable and safe taxi services through a more reliable, responsive and accountable booking service. Taxi drivers will be better trained in assisting people with a disability. Taxi organisations that offer WATs will provide a dedicated, safe and highly responsive service.

Information about the taxi and hire car industry will be publicly available and it will be easy for consumers to find out about particular taxi organisations and operators, the services they offer, the fares they charge and how they are performing. With direct access to data from taximeters, the industry regulator will monitor the industry more effectively and make better decisions about industry policy and regulation. Taxi users will use their smartphones to scan in-cab bar codes to identify the driver, operator and licence holder of the vehicle in which they are travelling and make an immediate complaint or record a positive comment about good service.

These outcomes will evolve over time as the industry becomes more competitive and diverse. They represent a substantial improvement in the current levels and standards of service available to consumers.

Implementing reform