Further reforms to the state’s troubled taxi industry could allow taxi companies to set their own fares in a bid to boost competition. There will, however, be some extra protections included to protect the customers too.
The new laws are being considered in a bid to equalise the taxi industry's ability to compete with Uber and are likely to be introduced in state parliament as early as next week.
These new laws will form the next stage of the Andrews government's taxi industry reforms and will allow networks such as Silvertop or 13CABS to compete against each other on fare prices.
The government, however, is still to decide on the finer details of these new reforms.
The first stage of taxi industry reforms included legalizing Uber and drastically reducing the fees for up-front taxi licences. According to the government, these changes were designed to boost choice and reduce fares for passengers.
reported that there is concern about a “half-pregnant” approach: new players such as Uber already operate in a system without fare limits.
They argue the reduction of taxi licence costs and other reforms will limit excessive fares by boosting competition.
It is likely the government will consider whether to put in place a sector-wide fares cap.
The industry is also waiting to see whether the government moves to cap surge pricing.
In July, after Melbourne’s train network shut down during one evening peak hour, Transport Minister Jacinta Allan put Uber “on notice” for trebling its rates.
Major changes are likely to trigger heated debate. Some taxi licence owners have already complained that the government has destroyed their livelihoods.
Opposition public transport spokesman David Davis said: “(Premier) Daniel Andrews’ dismantling of the taxi industry has been a shambles, with inconsistent and hopelessly inadequate transition assistance and an unfair ‘fairness’ fund.”
But Hayley McNaughton, on behalf of Ms Allan, said the government was providing more than half-a-billion dollars to the existing industry — “the most generous assistance package in the country”.
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