Taxi industry inquiry
More diverse and better vehicles
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More diverse and better vehicles
The Draft Report identified a range of problems associated with the vehicles currently delivering taxi and hire car services. The inquiry found that many of these problems stem from a complex and prescriptive regulatory framework that imposes significant costs on the industry and reduces its competitiveness. Allowing taxi and PBO permit holders greater choice in the vehicles and equipment they use (within a clearer, outcomes-based framework) could deliver substantial benefits to industry and consumers. It would also assist the industry in keeping up with new vehicle and equipment technologies, adopting innovations such as ‘talking taximeters’ and smartphone payment applications, and choosing vehicles that are purpose-built for accessibility and safety. The Draft Report also responded to a number of regulatory concerns about taximeters. These included the lack of fare breakdown on the meter, the need for improved oversight and testing of meters, and prescriptive meter regulations that are increasingly out of step with current technologies all of which translate to cost burdens on industry and hamper innovation. New taximeter standards would improve customer information, assist in fraud prevention, enable all components of the fare to be displayed and voiced, and ensure that meters are tested by expert independent service providers who would be subject to National Measurement Institute regulation. The inquiry noted that the voicing of fare components as they occur offers advantages to users with a disability and to the wider community. Transmission of trip data direct from the taxi to the regulator (rather than through intermediaries) has the potential to greatly enhance understanding of industry performance and enable better targeted and more effective regulation of the industry. This data is also essential for the inquiry’s proposed risk-based regulatory framework. The inquiry examined the history and rationale for the introduction of uniform yellow taxi livery in Victoria. The inquiry considered that a modest financial benefit would be achieved by removing the uniform livery restriction, especially for regional taxi operators. The inquiry noted that removing this restriction would not only reduce the upfront costs of putting a new taxi vehicle on the road, but would also allow networks and operators to brand their fleets distinctively, enhancing their ability to compete with each other and enter new markets. The inquiry also considered that some regional cities and towns may prefer to maintain a distinctive uniform taxi livery for tourism or other purposes and saw no reason not to allow this. The inquiry sought comments on removing or modifying the uniform livery requirement. The inquiry considered that advertising restrictions are costly for taxi operators, with scant evidence of any significant benefits arising from this prohibition. Two cities with iconic taxis, New York and London, both allow advertising in some form. The inquiry could see no justification for allowing public transport services to carry advertising, but not taxis. The inquiry also reported that a number of taxi users and drivers find the dome lights on taxis in Victoria confusing and make it difficult for potential customers to know if a taxi is available. Draft recommendations The inquiry’s draft recommendations aimed to encourage greater brand distinction and competition between ATOs and individual taxi businesses, and to deliver more diverse and more accessible vehicles across the commercial passenger vehicle fleet without compromising vehicle safety and standards. The inquiry’s view was that, alongside reforms to increase competition within and between the taxi and PBO sectors, these recommendations will generate greater choice for consumers and enable the industry to offer new services, expand into new markets and attract more customers. The inquiry made 11 draft recommendations in relation to vehicles and service differentiation: The inquiry notes that proposed changes to the Australian Disability Standards for Accessible Public Transport, in respect of allocated space for wheelchairs in vehicles, will lead to undesirable outcomes for accessibility, vehicle quality and operator costs and recommends that they not be adopted. The inquiry also notes that superior designed, purpose-built, universally accessible taxi vehicles are used in overseas jurisdictions – for example, the London ‘black cab’ – and should be allowed to operate in the Victorian fleet. The inquiry recommends that more flexibility be incorporated into federal and state standards to allow these vehicles to be used in Victoria, including as wheelchair accessible taxis. New outcomes-based vehicle standards should be developed for taxis and hire cars that allow for the use of wider range of vehicles offering better design, greater accessibility and improved fuel efficiency. These new standards should include a minimum requirement for all taxi and Pre-Booked Only cab vehicles to be compliant with Australian and Victorian vehicle-related legislation such as the Australian Design Rules, the Victorian Road Safety Act 1986 and Road Worthy Certificate requirements. Vehicle standards should set requirements for:
Standards for taximeters should set the following requirements:
All trip data should be transmitted directly from the vehicle to the Taxi Services Commission. Permit holders should be permitted to have advertising on their taxi and/or Pre-Booked Only cab vehicles, subject to stringent rules set by the Taxi Services Commission in relation to size, placement, subject matter and other requirements. No change should be made to vehicle age limits for taxis and Pre-Booked Only cabs at this time. The Taxi Services Commission should conduct further research into the influence of the age of vehicles on safety to determine whether to retain and/or amend age limits in the future. The regulation covering dome lights should be amended to be more outcomes-focused. These outcomes should include automation of signaling linkages from taximeters to the dome light to show the accurate status of the taxi (hired or available). Authorised Taxi Organisations should be permitted to adopt their own dome light design consistent with the new regulation. The inquiry notes that the regulation covering the colour of taxis could also be made more outcomes-focused to retain the requirements of distinctiveness and professional image, while also allowing for approved company branding. Specifically, the inquiry seeks feedback on the further possibility of:
Victoria should seek the support of other Australian jurisdictions for a more cooperative national approach to vehicle standards. In particular, the Victorian Government should actively pursue:
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