Download (7 MB) - Taxi Talk Magazine

EMBrACE ThE
Over the past 2 years the wider taxi industry and
the payment systems that support it have come into
the spotlight for Government inquiry and reform. We
have seen:
1. The Victorian Taxi Inquiry, whose report is to be
tabled in Parliament by 12 Dec 2012;
2. The IPART Inquiry into licensing practices in NSW;
3. The ACCC conviction of Cabcharge in 2010 with
fines of $15m for Sect 46 Breaches;
4. The RBA’s review of Card Surcharging;
5. The QLD Government’s review of ways of integrating
payments, dispatch and meters; and its
review of its TSS program (the equivalent of the
M40).
The breadth of these regulatory and government initiatives,
in particular the comprehensive nature of the
Victorian Inquiry, has caused uncertainty and concern
among many in the industry. This is because we all
grow comfortable with the way things are.
It is instructive to look outside the taxi industry to
compare significant Government reforms. In the past
30 years we have seen the:
1. Deregulation of banking - Once we had 6 national
banks offering 4 products to retail consumers
and only a handful more to business. Now we
have 26 banks with the “majors” offering over 200
products to retail consumers alone. It is argued
by some that these reforms didn’t go far enough.
2. Reform and competition in telecommunications
to release the single supplier dominance
of Telstra lowered phone and internet costs and
opened new ways for all of us to do business.
3. Competition in electricity that removed inefficient
state owned monopolies.
I worked on two of these major reforms. I was involved
in the establishment of Optus as part of telecommunications
reform and secondly in the reform
of the electricity industry in Victoria. What I learned is
that these reforms have created new business indus-
28 |November 2012
try structures, new business practices and new products
and services. Productivity grew, the economy
became stronger and consumers were better served.
The current reforms proposed for taxis have the potential
to deliver similar wide-ranging benefits to drivers,
operators and most importantly to passengers.
It’s obvious to all that Governments have the opinion
that the taxi industry, of which I am a participant,
has a pattern of trying to resist change and to protect
the status quo. Public perception of the industry is that
it is tired of sub-standard service quality, and service
delivery and significant change is overdue.
The Taxi Inquiry has reviewed many of the issues
that drivers, operators and the VTA have flagged over
the years. These include bailment, insurance and assignment
processes, all of which are key drivers in industry
behaviour.
In addition, it has opened a comprehensive review
of the industry’s approach to technology, dispatch,
payments, all part of the industry’s fulfillment capability.
It is clear that despite the industry’s view, the industry
has failed in many of these areas. The industry has
for too long been limited by the constraints of legacy
systems, legacy technology and legacy infrastructure
in these key areas. This has locked in business models
that are failing, where the only change possible is
tinkering at the margins whilst locking in Operators
and Drivers to antiquated technologies and inefficient
cost structures.
Overall the Taxi Inquiry’s reforms are designed to
cause the fundamental value network of the industry
to be reshaped over the next 4 to 5 years.
The challenge for the industry and its participants
is to embrace the opportunity presented by reform.
Find ways to lead reform within the Government’s reform
framework. Survival should not be the mantra of
the industry. It should be, to embrace reform, create
world’s best practice and be the example of quality
taxi service delivery that others aspire to emulate.
Taxi Talk - Voice of the Taxi Industry