Taxi Industry Changes Set To Benefit Drivers and Passengers

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Sydney taxi customers received good news this morning, with new laws in effect customers now will no longer pay to cross the Sydney Harbour Bridge and the Harbour tunnel heading northbound.

With these changes taxi booking companies now will have the opportunity to set their own prices for various trips. This potentially will create discount packages and deals for more frequent cab passengers.

Customers who now book rides or hire vehicles can ask for an estimated trip price before booking the cab. These prices can be set at a fixed amount or rated depending on how many kilometres.

Barbara Wise the NSW Point Transport Commissioner said several taxi companies have freedom to set their own fares for trips made via phone or taxi app. This will allow for flat fares to be set for those frequent trips, for example trips to the airport or CBD.

Since ride-sharing is the new trend because of pricing and convenience taxi companies need to be able to compete. Ride-shares are around 20% cheaper than that of a regular taxi fare.

Passengers now can benefit from a competitive market that allows them to find the best price for any trip. However, starting in February there will be a $1 levy given to every trip to help pay for a $250 million compensation package for the entire taxi industry.

This overhaul will apply to all ride services throughout Australia and with a drop-in insurance premiums for taxis of 40% taxis will remain competitive against ride sharing services which will help the industry and the passenger.

Andrew Skeleton, Cabcharge Chief Executive, has welcomed these changes stating that this will make services more reliable and prices to remain low.

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