On why taxis cost so much

As an ex cabbie, I think few people realise the bad deal drivers get. Someone told me when I got my pube job that it was like winning lotto. They were right, comparitively.

Cab driving has lots of plusses, but the average driver gets pretty sick of 12 hour shifts, drunks, psychos, you name it. I’ve had days where I start out and circumstances worked against me and I end up making nothing for the first 2 hours of work. This is especially the case in January each year.

Owning a cab is a bit like owning an investment property. Some go backwards financially, some make a bit and those that manage them well and own more than one can end up doing very well.

What are we comparing the ‘expensive’ fares to?

In my case Melbourne and Perth – both just a little more than half the price over a similar distance.

CapitalK said :

Take the cab number and write a letter of complaint – the driver will be dealt with accordingly.

I followed a cab that was doing 80k’s up Antil Street, cut someone off when he turned into Madigan Street, I took the cab number & complained to Canberra Cabs, I received no response & I saw him do it again 2 weeks later (same driver, different cab).

From my many years of experience taxi, DC & DX n umber plated vechiles have the worst drivers at the wheel.

CapitalK said :

Take the cab number and write a letter of complaint – the driver will be dealt with accordingly.

Emails work just as well. Although it may be a week or three before someone gets back to you for more information, you’d best note down everything you remember about the incident and time/date/place picked up and destination and the taxi.

eyeLikeCarrots said :

I’m happy to pay a fair fee for a taxi ride.

I’m also entitled to get into a cab and not be refused because the driver does not want to drive to the destination, it being too short a trip and him being pissy that he waited a whole 2 minutes in the rank while I waited 20 minutes freezing my bollocks off.

Or be futtzed around because he A) does not know the way to the suburb or B) how to use the god damn GPS that is 16 inches from his face.

Or sit in a cab that smells like an ashtray…. or have the driver gabbing on his mobile phone while drinking his coke, tearing up Commonwealth ave at 105km/hour…

Little wonder I rarley drink in the city.

When I meet a great cabbie, I will ask for his card.

I think you find it is a legal requirement for a driver to take you to your destination once you have got into the taxi.

I have found drivers in Canberra reasonably alert and they know the city. Like anything, you get some good and you get some not so good. I have only once not had a cab turn up at my address, all other times they turn up within ten minutes.

Oh and why wouldn’t you pay for the privilege of door-to-door service. What are we comparing the ‘expensive’ fares to? Compared to walking? Compared to getting a bus? Of course it is more expensive! If you are comparing fares to fares in other cities, you cannot simply do that because each city operates and is designed differently, Sydney has trains and nightride buses etc that compete against taxi patronage. You are comparing apples to oranges. If you think taxis are expensive, don’t use them! There are choices, admittedly for most Canberrans it will most likely involve walking :).

Welcome to a capitalistic society = user pays!

Oh I also agree with Ian, suck it up re GST and tax, we all have to.

probably why cabexpress are based in queanbeyan – the NSW rate is much lower. The problem is that the aerial monopoly extends to businesses like hotels. The cab service that the hotel recommends is not both operators in town, it is one of the aerial services, and if you are from sydney, elite is known to you.

eyeLikeCarrots said :

I’m happy to pay a fair fee for a taxi ride.

I’m also entitled to get into a cab and not be refused because the driver does not want to drive to the destination, it being too short a trip and him being pissy that he waited a whole 2 minutes in the rank while I waited 20 minutes freezing my bollocks off.

Or be futtzed around because he A) does not know the way to the suburb or B) how to use the god damn GPS that is 16 inches from his face.

Or sit in a cab that smells like an ashtray…. or have the driver gabbing on his mobile phone while drinking his coke, tearing up Commonwealth ave at 105km/hour…

Little wonder I rarley drink in the city.

When I meet a great cabbie, I will ask for his card.

Take the cab number and write a letter of complaint – the driver will be dealt with accordingly.

I’m happy to pay a fair fee for a taxi ride.

I’m also entitled to get into a cab and not be refused because the driver does not want to drive to the destination, it being too short a trip and him being pissy that he waited a whole 2 minutes in the rank while I waited 20 minutes freezing my bollocks off.

Or be futtzed around because he A) does not know the way to the suburb or B) how to use the god damn GPS that is 16 inches from his face.

Or sit in a cab that smells like an ashtray…. or have the driver gabbing on his mobile phone while drinking his coke, tearing up Commonwealth ave at 105km/hour…

Little wonder I rarley drink in the city.

When I meet a great cabbie, I will ask for his card.

Found this interesting PDF of Australian taxi industry benchmarks/averages which says that drivers get $76,950/year in fares on average. 50% of that pre-tax is not a good income.

I don’t understand why taxi plates are artificially limited.

No question that the drivers aren’t making much money. The complaint about the cost of a plate is a furphy though – the cost of the plates is set by the market. If a plate costs $250k, that’s the market price which factors in an appropriate return for the risk. If a plate is being leased at $20k, that’s not a bad return on the original investment, 8%, and again the market would be setting the lease price. Lessors in turn would be taking on a lease based on the return they expect to get.

So that’s the finance perspective. From an economics perspective we have the classic outcome of a monopoly – too little provided at too high a cost. Everyone loses, even the plate owners, as a competitve market increases profits.

Ian – they bought out the hire Car plates a few years ago – and now any suitable organisation (or sole operator) is able to apply and get a set of H plates on a monthly lease basis…..

Yes – doing this with the 250 plus taxi plates out there @ $250k each will cost us tax/rate payers a bit more cash…..

The big thing that has screwed up taxi pricing is that taxi licenses are treated as a valuable, tradeable commodity. That is just stupid! Licenses should not be regarded as assets – what should happen is that anyone who meets a certain set of criteria should be paying an annual license fee, with freedom of entry and exit to and from the industry. (Compensation of existing license holders is a separate, and difficult question).

As for the other costs, the ACT rego fee is within the ACT Govt’s control, and if it is way out of kilter with other states ought to be fixed. The other costs are just normal costs of business – insurance, yes expensive, but taxis are hardly alone there. As for the comment about paying tax and GST, boo hoo, so what, everyone has to pay those out of their income.

I don’t think any of us are under the illusion that the drivers are the ones making the money. Maybe the drivers could start demanding 60% instead of the ‘standard’ 50% of the fare…..

I once answered a job vacancy for taxi drivers and put that exact proposal to the owner. He said ‘mate – if I pay you 60% then everyone is going to want that much….” so I said ‘well – how much do you need a driver?’. He knocked me back – but a week later rang up offering me 55% – but by that stage I had started another job.

The drivers do not make good money for the hours worked and the conditions they have to put up with….