Shameful state of taxi industry shows it is past time to protect customers

At its most basic, the act of hailing or booking a taxi and then getting into it is an act of trust.

We trust that a driver will take us where we want to go in a timely and cost-effective manner, that they will drive safely and that they will not misuse the advantage of having us confined in a moving vehicle under their control.

Public trust in the taxi system is in tatters.Credit: Wolter Peeters

By the same token, the driver is entitled to expect that we will behave in accordance with the law, and that we won’t misuse or damage the means by which they earn a living

Our recent investigation of Australia’s largest taxi company, A2B, shows there are many more layers of trust that can be breached.

Trust that the technology used to record payments is not being actively, systemically rorted; that the complaints process against operators will be transparent and fair; and that the minority of drivers who rip-off, assault or otherwise endanger their customers will be appropriately sanctioned.

The first responsibility falls upon the operators. As our reporting has shown, A2B’s approach of “bulk settling” complaints and not referring them to relevant authorities has done little to improve standards.

But where they fail, the state and the federal governments need to step in to ensure improved monitoring and regulation and penalties matching the scale of the misconduct.

Staggeringly, the response from Canberra and our national regulators has been close to silence, even as the heavily federally funded National Disability Insurance Scheme and aged care systems were called out as favoured targets for the rorters.

Even worse, many of the exploited and often vulnerable passengers are forced by various of their Commonwealth support agencies to use taxis and Cabcharge products. Why taxis and Cabcharge should enjoy this favoured position is a good question for any minister concerned about value for money and the welfare of citizens.

Yet, federal Social Services Minister Amanda Rishworth could not have appeared more indifferent, issuing a pair of short statements only to note she would not be drawn on individual cases and, late on Friday, that unspecified “appropriate action” was being taken to tackle fraud in the NDIS. It was as perfunctory as it was pathetic. It can only be hoped that something might be happening behind the scenes. It was as perfunctory as it was pathetic. It can only be hoped that something might be happening behind the scenes.

In NSW, a hotline had been set up by the Point to Point Transport Commissioner, and received more than 1000 calls in its first six months, resulting in 520 drivers being disciplined. Another sign of just how unhealthy this industry has become.

The NSW government has increased the penalties for fare-related offences and introduced a two-strikes-and-you’re-out policy for drivers, and this week announced a blacklist to prevent offenders moving from one operator to another.

Many of those on the receiving end of the worst treatment are those we owe a special duty of care.

It should now be crystal clear that the current systems do not work. Until they are replaced, unscrupulous drivers, enabled by a large company not doing enough to stem the bad behaviour, will be taking all of us for a ride.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.