Taxi drivers may soon be able to set their own fares in an industry shake-up aimed at making the industry more competitive – which could see prices skyrocket.
New laws to allow cab companies to remove fare limits and even meters from cars could come into effect as soon as year’s end if passed by State Parliament in Victoria.
The proposed reforms have raised concerns the pricing free-for-all could see drivers refusing short fares and steep price-hikes during peak times.
Taxi drivers may soon be able to set their own fares in an industry shake-up aimed at making the industry more competitive – but prices could skyrocket (pictured is a stock image)
Only those hailing cabs on the streets will need to be provided with fare estimates, and app users will get estimates when they book, The Herald Sun reported.
The industry deregulation is an attempt to make the industry more competitive, with ride sharing services such as Uber already using similar models.
Uber has been accused of destroying the taxi industry with state governments told they need to do more to protect cab drivers who have seen licences lose value.
Public Transport Minister Jacinta Allan said the reforms are aimed at improving service and reducing fares for passengers.
New laws to allow cab companies to remove meters from cars and remove fare limits could come into effect by year’s end if passed by State Parliament in Victoria (pictured is a stock image)
‘For the first time, we’re providing a level playing field by allowing the taxi industry to compete with new providers and giving passengers more choice,’ she said.
The flexible fare system follows the removal of licence fees for cab operators, and new consumer and passenger protection laws will be put in place.
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Uber has been criticised in the past for ‘surge pricing’ when demand is high, and the reforms have raised fears of similar behaviour across the taxi industry.
Ms Allan took Uber to task for their price hikes during public transit crises last year, calling them ‘a practice that takes advantage of people at a certain time’.
Taxi companies are expected to respond by setting new day and night rates, offering variable tariffs, and giving regular customers set fares to certain destinations.
Victorian Taxi Association chief executive Georgia Nicholls said the changes will be good for the industry and consumers.
She said she is glad the government is committed to ‘fair and equal competition’ in the industry.
Melbourne taxi operators have been accused of refusing short fares from the airport in the past, with police forced to conduct regular crackdowns.
Earlier this month officers from the Hume Highway Patrol fined dozens of drivers after being inundated with complaints from irate passengers.
Angry cab drivers blockaded roads at the airport in August in protest again Uber drivers being able to pick up and drop off passengers inside.
The proposed reforms have raised concerns the pricing free-for-all could see drivers refusing short fares and steep price-hikes during peak times (pictured are taxis queued outside Melbourne airport)