Cheap taxi licences snapped up

first_img Facebook Twitter: @NeosKosmos Instagram People have rushed to snap up new cheaper taxi licences from the Napthine Government since new laws came into effect on July 1.Two hundred and fifty five licences have been leased from the government for $22,000, much cheaper than the $500,000 going rate last year.All but 11 of the 255 licences are for the metro area despite no new demand in that area. Operators are worried that more taxis on the road will create a tougher market, with drivers chasing more and more fares to keep up to previous revenues. The highly unpopular reforms passed by the Napthine Government this year saw many Greek Australian taxi operators and drivers take to the streets to protest the laws that directly affected their income and livelihoods. David Samuel, chief executive of industry group the Victorian Taxi Association told The Age that if demand isn’t there, people wont be buying licences as willingly.“We hope to see this surge tail off very quickly because if it continues it will be unsustainable,” he said.Reforms past in July included changing fares so taxis are cheaper in quiet times and more expensive during peak times, giving drivers a 5 per cent increase in their cut of the fare, and lowering the credit card surcharge from 10 to 5 per cent. The reforms aim to improve poor service delivery in the industry. Source: The Agelast_img read more