Data shows thousands of new taxi drivers buying licences in Victoria

THOUSANDS of new cabs have hit the road since last year with cheaper licences prompting taxi drivers to sign on in record numbers.

CHEAP licences are attracting record numbers of taxi drivers.

Thousands of new cabs hit the road in the past year.

New figures from the Taxi Services Commission show the number of taxi licences in Victoria rose from 5636 in August 2017 to 9757 at the end of April.

The industry, which wants the right to increase fares, last week won permission to pass on a $1 levy to customers.

David Samuel, of 13CABS, said the company had seen a major increase in driver numbers in the past six months.

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“This reflects a clear demand from passengers to use our service and it also shows a demand for drivers in our industry,” he said.

“More taxis means more reliability for consumers and we expect to see a growth in demand as a result of that.

“We understand we’re in a more competitive market but we’ve never accepted that should be the end of taxis.”

The annual cost of a taxi licence in Victoria has dropped from more than $23,000 to $52.90 since the industry was deregulated.

New figures from the Taxi Services Commission show the number of taxi licences in Victoria rose from 5636 in August 2017 to 9757 at the end of April. Picture: Ian Currie

Mr Samuel said data showed people favoured taxis over other personalised ­transport. “We believe we can provide a competitively priced product, and particularly at times of high demand,” he said.

“We’ll do our best to align the product to what consumers expect and demand.”

In a submission to the Essential Services Commission, 13CABS called for minimum fares on unbooked taxis to rise.

The submission warns that drivers’ returns are likely to fall further unless fares for rank and hail journeys could be raised by 11 per cent.

“The government’s reforms have cut costs and increased competition, which will mean greater choice, improved services and lower fares for passengers,” a spokesman for the government said.

Last year, the Andrews Government passed laws for a $1 levy on all ride-share trips to pay for compensation for owners of taxi licences who had been disadvantaged by the deregulation of the industry that followed the arrival of ride-share operators.

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