Friday 14 June 2024

The state of the Taxi Industry in Canberra

 

It’s been almost 6 years since I drove a taxi. A number of things have changed within the industry since that time.  First and foremost, there are now three taxi companies operating within the region.  Aerial Capital Group, the former majority player in the industry, which operates Canberra Elite and Sliver Service, is still operating but is no longer the major player.  The major player is ACTCABS, which started operating 8 years ago, has approximately 45% of taxis operating in the region.  EZYCABS, another new player, has around 25% of the taxis on the road.  There are also a small number of independent taxis (around 10) which are not linked to a network.  Cabexpress, which was a small company operating up until recent years, has folded.

How is business? Not as bad as I was expecting.  I thought UBER would have totally killed the point to point transport market for taxis but there a number of passengers who have told me they hate UBER not only because profits go out of the country, but also because they don’t like price surging and that UBER drivers don’t have the same regulatory requirements that taxis have to comply with.

Also relevant is the fact that 90% of fares are either been paid by the government or company, not by the passenger themselves.  And if they are paying, they can claim the fare on tax.  I have also noticed that there has been an expansion of the Taxi Subsidy Scheme (TSS) , whereby the government pays 50% or 75% of the fare for the elderly or disabled.  When I was driving 6 years ago, I would did around  2 TSS fares a week, but now I do 2 TSS fares, on average, per shift.  

Another thing I have noticed, is the increase in fares from the Canberra Hospital and the North Canberra Hospital.  I have been out to Yass Hospital from the Canberra Hospital, transporting an elderly gentleman.  Another driver has been down to Bega from the Canberra Hospital, a fare that is over $600.  It seems that  hospital management have decided that it is cheaper to transport passengers home and between hospitals, rather than by  ambulance patient transport.