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Landmark review recommends sweeping reforms for taxi, Access cab, chauffeur and rideshare industries

Friday, 30 August 2024

Better security, stronger vehicle identification and removing barriers for service delivery in regional South Australia are among a raft of changes proposed after a thorough review of the state’s taxi, Access cab, chauffeur and rideshare industries.

The broad series of reforms, with changes to focus on enhancing safety, reliability and fairness, were recommended after a wide-ranging review of the state’s Passenger Transport Act.

The State Government committed to undertaking a rigorous audit of all point-to-point passenger transport services in South Australia, including taxis and rideshare services.

The review by the Department for Infrastructure and Transport has been informed by feedback from industry, customers and both internal and external stakeholders through public consultation.

Safety and security, including vehicle tracking and the clear identification of drivers, were key themes identified by customers.

The changes proposed would allow more taxis into the SA market, which will combat surge pricing, helping bring down fares for customers, and broaden availability statewide.

Key recommendations include:

  • Removing barriers for service delivery in regional South Australia and city fringe areas, which will allow metropolitan taxis, chauffeur and rideshare vehicles to operate statewide.
  • Removing the cap on the number of taxi licences able to operate in Adelaide. Unlike rideshare, the number of taxis cannot grow in response to demand because of the limit on the number of licences. Under a new model, the State Government would issue licences annually
  • Providing new powers to impose a broader range of sanctions, which will
    ensure stronger compliance and enforcement powers to address safety
    issues and fraudulent behaviour.
  • Strong penalties for the inappropriate use of meters and EFTPOS
    machines in point-to-point transport vehicles.
  • Requiring cameras in all point-to-point vehicles to ensure in-vehicle safety for drivers and customers
  • Introducing consistent vehicle inspection requirements, with annual
    inspections until a vehicle is five years old, and six-monthly inspections thereafter.

All taxi fares, including for rank and hail and South Australian Transport Subsidy
Scheme (SATSS) work, would remain regulated and subject to annual indexation. A
new ministerial power to approve a surcharge on regulated fares is recommended to
enable adjustment to fares in response to issues such as rising fuel prices, weekend
work and public holidays and after-hours work. The Transport Minister would also
have the power to prohibit or cap surge pricing in certain situations to prohibit price
gouging, a measure in line with other Australian jurisdictions.

In order to deliver the changes required to address many of the problems identified
during this detailed review, it was recommended that the taxi licence structure be
overhauled – with the State Government conducting a broad licence buy-back of
eligible licences and issuing licences annually.

The review heard from stakeholders across the taxi industry about the devastating
impact the introduction of rideshare has had on the sector. This is in part due to the
regulatory differences between taxis and rideshare, such as camera requirements for
taxis only, specialised equipment and regulated fares. In addition, rideshare operates
in an uncapped market, further limiting the taxi industry’s ability to compete.

Metropolitan taxis currently have a restricted market through a licencing system.
Since the early 1990s, many taxi licences were purchased as an investment –
however, the value of these licences has plummeted from a high of around $375,000
to as low as $10,000 since the introduction of rideshare operations.

The taxi industry continues to call for State Government support to address the
impact of the decrease in licence and leasing values and impact upon the profitability
of the sector, which has seen a reduction of over 50 per cent of taxi work since the
introduction of rideshare.

The review recommends a broad Taxi Industry Reform Package, with a buyback of
taxi licences from metropolitan taxi licence holders residing in South Australia before
the introduction of rideshare. It is proposed eligible general licence owners receive a
payment of $200,000 for the first licence and $10,000 for each subsequent licence
up to a total of six. Access Taxi licence holders would receive $100,000 for the first
licence and $10,000 for each subsequent licence.

This package would be funded by a $1 increase in the point-to-point passenger transport levy, which would increase to $2.

The review highlighted the need for fundamental change in the way Access Taxi services are delivered, with the current model delivering long-term poor service to people with disabilities.

In the year to July 2024, nearly 7000 customers waited more than half an hour for an Access Taxi to arrive, impacting around 580 clients a month.

The Government will conduct a market sounding process to identify viable options for a fundamentally new delivery model.