Part D – Understanding and improving industry performance (PDF ...

In recent years, NSPs have increased their participation
in the industry by providing ancillary services to operators
and drivers including finance, electronic payment
processing, taxi licence broking and driver training. In
Melbourne, progressive mergers and acquisitions of
small to medium sized NSPs have led to increasing
concentration of ownership of NSPs. Today, while there
are six accredited NSPs for the Melbourne metropolitan
area, an effective duopoly exists with three NSPs being
subsidiaries of Cabcharge (Black Cabs, Arrow Taxis and
North Suburban Taxis) and Silver Top Taxis and West
Suburban Taxis sharing common ownership.
The necessity for mandatory NSP affiliation is becoming
less clear, particularly as customers are increasingly
embracing alternative means of booking taxi services due
to the emergence of informal (‘secondary’) networks and
the growing use of smartphone applications. In addition,
evolving technologies offer new and possibly cheaper
alternatives for fleet tracking to ensure the safety of
passengers and drivers. The inquiry has also found that
booking services represent a smaller share of total trips
than had commonly been assumed.
As noted throughout this report, the inquiry considers
that the structure of the industry is a critical area that
must be addressed in order to deliver sustainable taxi
reform. In particular, measures to promote a move to a
more competitive environment for booking services and to
simplify and clarify the responsibilities and roles of industry
participants in the delivery of taxi services for passengers
are likely to deliver significant consumer benefits.
11.1.1. Consumer research
The inquiry’s commissioned consumer research
conducted by Ipsos Social Research Institute found that
ease of booking services is a key attribute in relation to
satisfaction with taxi services. Taxi users reported, “that
there are considerable limitations with regards to existing
phone booking services”, with the main drawbacks being
the wait times involved in speaking with an operator and
in the taxi arriving after placing the booking. 1
Many participants found it very frustrating that the operator
does not give an estimated time of arrival for the taxi, but
instead always states that it will be ‘the next available’ cab.
Several users said that they frequently called the phone
booking service back when the taxi had not arrived after a
length of time and are again informed it will be ‘the next
available’, adding further to their frustration. While most
taxi users acknowledged that waits are sometimes
inevitable, there was almost universal agreement that
operators should inform customers if there will be a
prolonged wait during busy times, with one regular taxi
user commenting: “What we need is greater transparency
of wait times”. 2
Another issue encountered by many participants in
relation to booking taxis was the taxi failing to arrive at all.
For some less regular taxi users, such experiences have
led to them to question the convenience of booking taxis
and to preferring other forms of transport they consider
to be more reliable. For more regular taxi users, it has
led them to preferring to hail a taxi or use a rank (unless
travelling from home) as “these strategies, when they
work well, are seen to involve less waiting and uncertainty
than phone booking”. 3
These concerns are reflected in the quarterly taxi
customer satisfaction research conducted by the
Department of Transport (DOT). Satisfaction was
reasonable in relation to aspects of the taxi booking
service, including ease of using the service (77.4 on a
100 point scale), staff helpfulness and knowledge (77.1)
and the range of options for booking (73.4). However,
lower levels of satisfaction were recorded for wait time on
Fridays and weekends (55.9), availability of information if
there are problems with a booking (51.3) and wait time
during a major event (45.4). 4
Submissions and consultations
Taxi users and drivers have expressed concerns about
the performance of primary NSPs and the effects of the
market dominance of the largest NSPs.
Performance of booking services
The inquiry has heard repeatedly from taxi users that they
are dissatisfied with the phone booking and dispatch
services provided by the primary metropolitan NSPs.
Their concerns relate to:
• Unreliable services – with long wait times or taxis not
turning up at all
• A lack of accountability for services – with NSPs
perceived as unwilling to advise customers where
their booked taxi is or how long it may take to arrive
and disinterested in pursuing bookings that are not
honoured
• Difficulties in contacting booking services via
telephone during particularly busy periods – with
customers waiting long periods of time to speak to
an operator or having their calls go unanswered.
1 Ipsos Social Research Institute (2012), Op. Cit., p.31
2 Ibid., p.32
3 Ibid., p.32
4 Wallis Consulting Group P/L (July 2011), Customer Satisfaction
Monitor Survey Metropolitan Taxis Report, April-June 2011,
Department of Transport, Melbourne, Victoria, p.14
Understanding industry performance CUSTOMERS FIRST 223