Does cab service need to increase with cab fares?

By The Editor

The Victorian Taxi Association’s recent submission to increase cab fares by 25 to 29 per cent deserves some consideration, but only if there’s a guarantee service levels will increase at the same rate.

The Association says Victorian taxi prices should be raised to be commensurate with New South Wales, in order to increase the wages of Victorian cabbies, otherwise we will ‘get what we pay for’ in terms of service and reliability.

It also argues the average wage cabbies earn is between $7 and $11 an hour, which falls well below the standard minimum wage.

A 29 per cent fare increase would result in a standard taxi ride between Melbourne Airport and the CBD costing as much as $70.

VECCI believes before the Government approves any increase in taxi fares (and the Government proposes no change to the existing formula, contained in this report), it should be linked to an appropriate increase in the quality of service.

Surveys show customers’ satisfaction with the taxi service has fallen from 65 per cent in 2005 to 58 per cent in late 2007. Taxis, one of the most expensive forms of transport (on a distance travel basis) have a lower degree of customer satisfaction than any other mode of public transport.

Booking or hailing a taxi remains an unnecessary saga and many drivers have no idea how to navigate simple trips, demonstrating limited knowledge of their local area.

From a tourism industry perspective, many people’s first and last impressions of Melbourne are formed while travelling in a taxi, and the quality of their experience must be guaranteed.

If fares increase and the result is simply an increase in depot and network system charges or taxi license values (which have already grown from $265,000 in 1999 to more than $470,000 in 2008), consumers and the tourism industry will continue to gain no meaningful improvement in service.

If a 29 per cent increase in fares resulted in a similar standard to the ‘Black Cab’ system enjoyed by residents and visitors to London, that could be justified as an investment in quality, rather than a price hike that will simply line the pockets of the networks and license holders.

It is difficult to discuss the merits of a price increase, without consideration of the taxi-cab licence assignment process which continues to cause debate. Changing the balance between drivers and depots/license holders may be a start towards better conditions for drivers and an improved taxi experience for passengers.

The onus must be on all parties to work together to ensure that both taxi drivers and passengers’ experiences improve…and quickly.

Would you be prepared to pay $70 for a cab between the airport and CBD in return for an improved taxi service? What measures should be taken to ensure a quality service and a quality of life for taxi drivers? Please post your suggestions below.

4 Responses to Does cab service need to increase with cab fares?

  1. kevin goggin says:

    think in terms of how often you use a cab maybe once or twice a year..if you paid even $10 more each time it would not unduly affect you; but it would make a difference to the driver and elevate his wage to a reasonable level. good drivers leave because there is not enough money to make it worth their while.
    I believe that politicians think eroneously that they would lose votes if fares went up but the service would be a lot better.

  2. [...] that makes for longer-than-necessary waits and and fares which may increase (though hopefully with  a commensurate increase in service). Cabs are also a poor option for passengers with disabilities, as they are often (illegally) [...]

  3. Georgie says:

    Catching a cab in England is a pleasure. Sure it hurts the hip pocket a little more and the traffic through London really can crawl, but Cab Drivers over there have made a profession out of driving, making it really feel like its value for money.

    Catching a cab in Melbourne is like seeing the city through the eyes of a lost tourist. There’s uncertainty over road rules and a distinct lack of knowledge about the city and its history.

    And who can blame them? Taxi drivers are paid a pittance and from my own experiences it seems the majority are only students doing it to make ends meet hardly looking to make a career out of it. Sure they can go places public transport can’t, but increasing current rates with the current level of service – well I’d rather spend the money on a good pair of walking shoes!

  4. bianca says:

    I would never catch a cab to the airport anyway the bus or drive and park myself is the way I always go. It is about time a train line or light rail monorail service was made available to our major airport anyway. I already have to pay just under $100 to get a taxi from the city to my home now, so another price hike will guarantee that that is the last mode of transport I would ever consider. Especially as the majority of cab drivers have no idea how to get to the eastern suburbs from the city anyway and some wont even accept the fare to begin with. Sorry but the licencing system has just about forced taxi services to be unafordable and the lack of knowledge of our city and suburbs by drivers is a total disgrace. Maybe a knowledge of how to get from one suburb to another or from one end of the CBD to the other should be mandatory before one can drive after all I wouldn’t be able to get a job in any other city of the world if I didn’t know how to get from one side of the city to the other, or know the major streets or addresses. and just maybe more taxies on the road might help too if licences were not so expensive.

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