Taxi drivers slammed as loophole allows Australian Open fare gouging

The Victorian Taxi Association has slammed greedy drivers for price gouging, but the Andrews government is resisting calls to step

Under a loophole, taxi drivers are permitted to negotiate their own fixed fare with customers if they hail an unbooked cab. Picture: Jay Town

The Victorian Taxi Association has slammed greedy drivers for price gouging, but the state government is resisting calls to step in despite fare ripoffs at the Australian Open and safety concerns among female passengers.

VTA director Peter Valentine on Thursday accused the government of fuelling a culture of “greed” among drivers who, since 2017, have been permitted to turn off their meters and negotiate fares.

Acting Premier Jacinta Allan on Thursday brushed off concerns drivers were charging exorbitant rates for short trips, saying the issue was isolated to a small number of drivers.

But Mr Valentine said the little-known practice – exposed by the Herald Sun in December – was “widespread” and warned it would recur during the Formula One Grand Prix in April.

Former state MP and Transport Matter leader Rod Barton says he has repeatedly raised the issue of negotiated fares with the government. Picture: Paul Jeffers

The Herald Sun previously reported a growing number of Melburnians were being left stranded in the city unable to get home during the holiday season as taxi drivers haggled over inflated upfront fees.

Many women have reported feeling unsafe and taken advantage of while trying to catch taxis home at night.

“I think they know they can list any price once you’re in the car and on the way home – you’re pretty likely to get in the car if you’re a woman and especially if you’re by yourself,” 25-year-old Alex Waldron-Clark said.

Another young woman told the Herald Sun she was once left terrified after being locked in a taxi while trying to cancel an overpriced ride.

It comes as taxi passengers at Melbourne Park were asked to pay up to $100 for short trips home on Wednesday night. When questioned on the issue on Thursday, Ms Allan said the government already had tough regulations in place.

“There’s a really strong, robust regulatory environment around the supply of taxi and rideshare vehicles ... and how that service is to be delivered and how prices are to be set,” Ms Allan said.

“There are some really strict rules that govern the availability and the delivery of those services.”

Acting Premier Jacinta Allan says she believes the majority of taxi operators across Victoria do the right thing. Picture: David Geraghty

Industry insiders said price gouging was being driven by a little-known loophole introduced in 2017 as part of a sector-wide deregulation of the taxi industry.

Under the reforms, taxi drivers are permitted to negotiate their own fixed fare with customers if they hail an unbooked cab.

Ms Allan said while it was “disappointing” some vulnerable people had been stranded by taxi drivers or forced to haggle, she said most drivers did the right thing.

But the VTA said there were issues across the sector.

“The culture of drivers at the moment is one of greed and it is being fuelled by the state government,” Mr Valentine said.

“There doesn’t seem to be an appetite for the government to fix this problem.”

The fixed-fare loophole was intended to allow taxis to compete with rideshare companies that increase fares during busy periods. Passengers may ask the driver to use the meter, but it is not an offence for the driver to refuse the fare if they do not breach anti-discrimination laws.

Taxi giant 13 CABS called on the state government to improve its regulatory response to crack down on the “unacceptable” behaviour.

“They can’t keep pushing the problem onto the industry when they allowed hundreds and hundreds of unaccountable independent taxis on the road and removed regulations that outlawed things like fare refusal and negotiating the price of the trip on the rank,” a spokesman said.

Former MP and Transport Matters leader Rod Barton said he raised the issue with the government repeatedly when he was in parliament.

“This issue has been building for a long time, I gave the government a plan and we knew it was a ridiculous scenario,” the former taxi driver said.

VULNERABILITY PREYED UPON

Alex Waldron-Clark has had her fare share of disappointing taxi rides, from feeling ripped off to downright unsafe.

“It’s an easy situation in which to take advantage because as women we often have to avoid walking around on our own, and public transport isn’t always an option, so they know they can just charge anything,” the 25-year-old said.

“From a price perspective, I feel like taxis can take advantage of the fact that young women have safety concerns.

“I think they know they can list any price once you’re in the car and on the way home – you’re pretty likely to get in the car if you’re a woman and especially if you’re by yourself.

“You already have to be out on your own on the street to get the cab and they can take advantage of that vulnerability.”

Alex Waldron-Clark says she has experienced unfair pricing in taxis. Picture: Josie Hayden

Ms Waldron-Clark has felt especially vulnerable on occasions where she and her friends had been drinking alcohol.

“Oftentimes, when I’ve gotten a cab from an inner city suburb to the city on a Friday or Saturday night, the fare initially promised ends up nearly doubling … especially if the driver can tell everyone has been drinking and is on their way out for the night,” she said.

“These days, there’s no base rate so it can be a bit frightening because you don’t know what you’re getting yourself into. Recently I’ve noticed they don’t ask for your address, they used to ask and give you a fare estimate before the trip, now they just start moving without your address and they probably don’t have much of an idea of where that is. Often they don’t have sat-nav either.

“They can take wrong turns on purpose and not ask for directions which raises the price … you end up directing them to your location in the most haphazard way possible.

“You can’t even imagine what could happen to a person who isn’t paying attention, they could drive you around for 40 minutes if you were to fall asleep or weren’t able to direct them.”