are roadworthy and secure are to be placed on the booking service, taxi organisation and vehicle owner. Insurance The taskforce recommends that: The Government’s review of profits and competition in the CTP insurance market be released as soon as possible. The framework for establishing CTP cover for point to point vehicles be reviewed in recognition of the more flexible use of vehicles across the current classifications, to consider a system that better rewards safer behaviours. All point to point vehicles be required to have a third party property damage insurance policy which indemnifies the driver to a minimum level of coverage, to be determined in consultation with stakeholders. In the meantime, the existing level should be maintained. Fares The taskforce recommends that: Fares for booked taxi services be substantially deregulated to bring them into line with other booked services. All booking services be required to offer a potential customer an estimate of the total fare for the customer’s journey before a booking is confirmed. The potential customer should also be informed about whether and how the final fare payable may vary from the estimate provided. The Government continue to determine the maximum fare components (flagfall, distance rate and waiting time rate) and other charges for rank & hail taxi journeys. Taxi organisations be allowed to set and be required to display fares and charges that are at or below the regulated maximum. They should also be allowed flexibility about when they apply peak vs. off-peak fares. Further, some charges should be removed or substantially deregulated: Rank & hail services should no longer be allowed to charge a return toll for one-way journeys using the Sydney Harbour Bridge and Sydney Harbour Tunnel. While a cleaning fee should be chargeable if a customer soils a taxi, this amount should be set and displayed by the taxi organisation. Fares and charges for rank & hail services be calculated on a device using the rates displayed by the taxi organisation. The Government should remove prescriptive requirements for the equipment used to calculate the applicable
Customers In the interests of passenger safety it is vital that government undertakes an education campaign to explain the new arrangements. People who have only ever used a taxi service will suddenly be allowed to access ridesharing platforms and other booked service providers that rely on the transparency of booking and tracking technologies to ensure safety and security. Many of these vehicles will resemble a private passenger vehicle. If passengers fail to understand the rules of ridesharing or other regulated booked service providers, they may be induced to get into a car with a complete stranger. The personal risks involved in such circumstances are apparent. It will be necessary to inform the travelling public how the new arrangements for taxi fares will work, and they will need to be educated about the benefits of choosing a taxi based on brand rather than taking the first cab at the rank, as the social norm of “first come, first served” appears to dictate. Operators We have commented on the significant opportunities for taxi operators in the new regulatory environment, and the challenges they will likely face in the process of transition. Taxi operators are small businesses, and there is a strong case for government assistance to help them understand the new regime and to manage the adjustment from the old system to the new. There would seem to be a major role for the Small Business Commissioner to assist taxi operators in making this transition. Appendix 1 – The taskforce’s Terms of Reference Context The way that customers access the point to point transport market, and the competitive forces within it, have changed over the past decade and a half. The taxi industry in NSW is under increasing pressure from these changes, including the deregulation of hire cars over a number of years, the increasing prevalence of courtesy buses and the funding of community transport, particularly in regional areas. The high regulatory costs the taxi industry face compared to its competitors, combined with new business models in the market mean that the current taxi industry model will struggle in the long run, if changes are not made to create a level playing field and ensure a viable and sustainable future.