Cab drivers in Victoria caught flouting new laws with fare and scare schemes

Melbourne’s cab drivers are refusing to use the meter for trips or refusing service in what has become a culture of bad behaviour.

“Cowboy” cabbies in Victoria are brazenly flouting new state laws requiring them to turn on meters for unbooked trips and hailed rides.

A NCA Newswire investigation found 90 per cent of cab drivers surveyed charged upfront costs and said they would not use the metre or refused service for what they considered was a short trip.

20 cabs were approached at the Crown Casino, Commercial Rd, Flinders St Station and Southern Cross Station taxi ranks at various times between December 13 and 18.

Some drivers from the Crown Casino taxi rank were demanding prices as high as $100 for a trip to South Melbourne early on Sunday.

Outside clubs along Commercial Rd, some drivers were seen misleading customers by suggesting they offered a “fixed fare” or “prepaid” service only.

“The metre does not have to be running,” one cab driver told NCA Newswire.

However, drivers choosing not to use the metre for trips are in breach of new rules that came into effect on September 28 this year.

Many drivers are flouting regulations introduced in September forcing them to use the meter for all trips. Picture: David Geraghty

Some were demanding as much as $100 for trips to Port Melbourne from Crown Casino. Picture: Ian Currie

While refusing service for short trips could be considered poor customer service, drivers are allowed to turn down customers for any reason as long as they don’t breach anti-discrimination laws.

Victorian Taxi Association director Peter Valentine said cab drivers were totally aware of the rule changes enforced this year, but he found they were “refusing to be compliant”.

Since the deregulation of the Victorian taxi industry in 2017, and following the Covid-19 lockdown years, Mr Valentine said cab drivers had formed their own self-serving lifestyles, going in and out of shifts whenever they wanted.

“They are going to flout the law until they get caught,” he said.

Mr Valentine said there was now a widespread “culture” among taxi drivers, and rideshare drivers, who sought to actively bend and break the rules to suit themselves.

“They will turn a blind eye to any regulation they can for their own benefit,” he said.

“Quite often they will do things like taking their children to school, so the very time when you need cars on the road because you’ve got a peak period, they are not around.”

It is understood there are currently only six compliance officers at Safe Transport Victoria that oversee the enforcement of 104,165 commercial transport vehicles in Victoria, based on data from June this year.

Safe Transport Victoria has reinforced messaging to drivers about using the meter for every trip. Picture: NCA NewsWire / Sarah Matray

Mr Valentine said the VTA was not alarmed drivers weren’t using the meter, instead pointing the finger at the government for trying to enforce the rules with limited resources.

“Anyone could see that you would need six officers 24 hours a day in the CBD of Melbourne alone, so if you’ve got no enforcement, then you’ve got no one who wants to be compliant with regulations,” he said.

As a result of the lack of accountability, he said he had noticed a “definite” uptick in complaints from customers over the past six years, with the VTA conducting a minimum of one or two disciplinary driver interviews a week.

A Safe Transport Victoria spokesperson was unable to confirm a specific number of compliance officers, saying there was a staff of 190 at last headcount from earlier this year.

The spokesperson said as an accredited CPV driver, taxis were required to follow the laws and regulations, including running the meter.

“We ran a comprehensive campaign informing the industry of the changes and will continue to engage directly with drivers,” they said.

A spokesperson for Crown Cabs said while there was support for the regulations currently in place for drivers, they had done “little to help” booking service providers in Victoria.

“Crown Cabs support the new laws and Crown Cabs instructs drivers to abide and have the meter on,” the spokesperson said.

“The new laws do little to help the mess of this cowboy taxi industry in Victoria.”

Crown Cabs said the industry was dominated by independent operators, not connected with the business, who were attracting most of the customer complaints and regulatory audits.

Former member of the Victorian Legislative Council and transport advocate Rod Barton said

the taxi industry had become “casualised” by the Victorian government’s over commitment to accommodating foreign rideshare companies.

Rod Barton believes Victoria’s taxi industry is considered one of the worst in the country as a result of an influx of rideshare vehicles. Picture: NCA NewsWire / Paul Jeffers

Mr Barton said an influx of tens of thousands of rideshare drivers into Melbourne’s CBD had diluted the market, making it impossible to make a sustainable living as a taxi driver.

“We’ve now created an industry that has been casualised and [for] all the full time drivers, it is very, very difficult to make a living full time.”

Rideshare companies such as Uber and Didi are able to charge customers higher prices during peak periods using ‘surge pricing’.

Mr Barton said taxi drivers were unable to charge the same inflated prices as a result of meter regulations, forcing them to take measures into their own hands.

“So the drivers are going ‘well you know what, stuff ‘em, I’ll just not use my meter and I will just charge whatever I like.”

He said the current system had the reverse effect of protecting customers, with drivers now encouraged to use fare and scare tactics on passengers after a night out.

“Most people just let it go and pay, which is so wrong,” he said.

Victoria’s taxi industry was now viewed as the worst in the country, according to Mr Barton, who added visitors were being turned off by their experiences.

“We certainly have a reputation around the country of having the worst taxi service in Australia,” he said.

“When you think about all our major events: the Grand Prix, the tennis [Australian Open] and all the concerts we are having at the moment, people are flying in from interstate and overseas and are having a really bad experience.”

Data recorded (from different cab rides):

Southern Cross Station taxi rank, Wednesday 3pm – Destination, Southbank

– Driver refused trip to Southbank, citing that he didn’t want to deal with traffic

– After communicating with the first driver, refused service

– Charged $45, refused to use the meter

Commercial Rd taxi rank, Sunday 1am – Destination, South Melbourne

– Driver charged $35, refused meter and claimed it was a “prepaid” taxi

– Charged $55, then refused service when asked if the meter could be used

– Charged $45, refused to use the meter

– Refused service due to filming

– Refused service, didn’t want to go the desired location

– Refused service, didn’t want to go the desired location

– Driver charged $45, claiming they only provided a “fixed fare”

– Driver accepted meter usage

Crown Casino taxi rank, Sunday 2am – Destination, Port Melbourne

– Driver offered $100 fare

– Driver offered $100 fare

– Driver offered $80 fare

– Driver charged $35

– Driver refused service, citing he had waited “45 minutes” in traffic

– Refused service, didn’t want to go the desired location

Flinders St Station taxi rank, Monday 8pm – Destination, Kew

– Driver charged $35, refused to use the meter

– Driver charged $35

– Driver accepted meter usage