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

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There are nine accredited secondary networks currently operating in Melbourne and one covering Geelong and the Bellarine Peninsula. One of the largest secondary networks has approximately 300 operators who have used their own initiative to establish standards and have signed a code of conduct designed to ensure consistently high levels of service. This group differentiates itself from ‘standard’ taxis by providing ‘premium’ long wheelbase vehicles and drivers with a minimum of two years’ experience. The network’s code includes strict uniform rules and a strong customer service ethic, with sanctions for infractions attaching to the car (rather than the driver) –reinforcing the strong self regulatory nature of the group. The inquiry understands that sanctions imposed by secondary networks on their members usually range from time-based suspensions through to expulsion from the network. A list of the secondary networks is contained in Table 11.1. Generally, secondary networks aim to provide high quality services to the pre-booked market. While individual drivers can participate in the rank and hail market, the group is focused primarily on maintaining and extending business with new and repeat customers. Secondary networks must also be accredited with the VTD; however, they are not permitted to provide a centralised dispatch service or display their branding on vehicles. Table 11.1 Secondary Networks Secondary Network Organisation type Operating suburb Melbourne Network Drivers Association Inc. Incorporated Association Avondale Heights Executive Drivers Association Inc. Incorporated Association East Cranbourne Elite Taxis Association Inc. Incorporated Association Somerton Platinum Taxis Association Incorporated Incorporated Association North Melbourne Telecabs Drivers Incorporated Incorporated Association Scoresby Integrity Cab Drivers Association Inc. Incorporated Association Heidelberg Heights Melbourne Phone Cabs Association Inc. Incorporated Association Reservoir Prestige Taxi Drivers Association Inc. Incorporated Association Heidelberg Heights Premier Taxis Unincorporated Body Moolap (Geelong) Source: VTD accreditation data Understanding industry performance CUSTOMERS FIRST 229
Secondary networks – customer choice at work The inquiry has found high levels of satisfaction with the performance of secondary networks, with many regular taxi users commenting that these networks provide more reliable services than ‘standard’ taxi services. Benefits reported by secondary network taxi customers include knowing which driver is coming and when; having access to a regular and trusted driver; and being able to negotiate flat fares. Generally, these customers report having obtained the details of a particular driver or group of drivers from a friend or colleague. They then call the driver or network whenever they need a taxi. The consumer research conducted for the inquiry by Ipsos Social Research Institute also found that a number of taxi users attributed their positive experiences to having access to a secondary network. Ipsos reports that these users: …overwhelmingly found that such drivers provided a far higher quality of service than the standard, and were particularly pleased with their reliability. Secondary network taxis were also seen to be of a cleaner, more comfortable standard. Further, as booking a taxi through a secondary network bypasses the need to use a booking service, passengers are usually informed when the taxi will arrive and whether or not there will be a delay … 24 Organisations working with people with a disability also report ‘bypassing’ the primary NSPs to form relationships with regular drivers and secondary networks. For example, Blind Citizens Australia comments: Many people who are blind or vision impaired choose to establish a direct relationship with one or two drivers, or a small network of drivers, with some members noting that this guarantees them a better quality service. 25 The Ipsos research identified examples where accessing taxi services “was easy and customer centred in design” and noted that most of these examples came from users accessing services through a driver they know or a secondary network. The Ipsos report concludes: These services are seen to be comfortable, reliable and driven by professional, friendly drivers. Secondary network taxis also have benefits in terms of access in that they can be booked through direct contact with a driver, eliminating the need for booking services. This model should be considered in improving the broader taxi industry. 26 11.3. History of taxi networks Taxi networks have played an integral role in forming the structure of the taxi industry in Victoria. This next section looks at their influence and evolution from representative organisations into the corporations that we see today. Their important role in leading innovation in the technology field is also analysed. 11.3.1. Cooperative monopolies As described in chapter 6, the Transport Regulation Board (TRB) assumed responsibility for regulating the commercial passenger vehicle industry in Victoria in 1952. The TRB found that while taxis were available within 5km of the city centre, Melbourne’s suburbs had very limited access to taxi services. To address this issue, the TRB divided suburban Melbourne into a number of taxi zones. Suburban taxi companies and individual operators were then amalgamated as ‘depots’ with the aim of ensuring that phone bookings for taxis could be met efficiently. This early structure for booked services contemplated – either consciously or not – that monopoly providers in each zone would offer the most efficient means of delivering a quality taxi service to customers. Typically, early taxi depots were member-based organisations run by taxi operators on a cooperative basis. Taxi operators were directly involved in the running of the depots and in making decisions about depot rules and activities. Depots also assisted their operator members by offering better buying power for consumables such as fuel, vehicle parts and repairs. Drivers were often placed in a common ‘pool’ by each depot and shared by the taxi operators. 24 Ipsos Social Research Institute (2012), Op.Cit., p.80 25 Blind Citizens Australia, Submission to the Taxi Industry Inquiry, SS155, p.2 26 Ipsos Social Research Institute, Op. Cit., pp.96-97 230
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Case study New Zealand’s experien
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Case study Singapore’s unique reg
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Case study London’s quality contr
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New Zealand is an example of a taxi
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Chapter 10. 10. Taxis, hire cars an
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Page 54 and 55: Merging the taxicab markets of two
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Page 102 and 103: Case study Cabcharge penalised for
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Page 106 and 107: 12.5.1. Removing regulatory barrier
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