Minister for Transport Darragh O’Brien has stated that the complete rollout of ride-hailing services is not part of Government policy and that there is “no intention to introduce it”, following calls from the Competition and Consumer Protection Commission (CCPC) to liberalise the taxi sector.
The CCPC has said it is seeking the elimination of regulatory obstacles to allow services like Uber or Bolt, which currently operate solely with licensed taxi drivers, to expand within the market, reports RTE.
Such a change would permit private motorists to offer transport services using their personal vehicles, provided they comply with regulatory protections.
The commission stated that research conducted between January and February this year pointed to a shortage in taxi availability, reports RTE.
A poll of over 1,000 consumers found that more than half of participants (57%) feel there are insufficient taxis in their locality.
In a statement, Mr O’Brien said he had taken note of the CCPC’s findings, but stressed that such a proposal was “not Government policy and there is no intention to introduce it”, reports RTE.
“The protection of the consumer and personal safety are vital objectives and must continue to be central to how the taxi and hackney sector is regulated and operated,” he said, reports RTE.
Mr O’Brien said the taxi and hackney industry has clearly evolved since the market was liberalised and particularly in recent years regarding the influence of dispatch operators.
“I have requested that the NTA conducts a regulatory assessment of dispatch operator licensing in Ireland in the context of ensuring that the regulatory framework for this element of the overall sector is sufficiently up to date and robust to respond to developments since the enactment of the Taxi Regulation Act 2013.” reports RTE.
Mr O’Brien urged taxi drivers, customers, the CCPC and other interested parties to participate in the review process.
The commission’s findings revealed “stark differences” in views about taxi numbers depending on geographic area, reports RTE.
The study showed that in Dublin, 56% of respondents believe there are enough taxis available.
Outside the capital, however, only 28% agreed with that view. In Connacht and Ulster, the proportion dropped further to 21%, reports RTE.
The CCPC said 49% of respondents expressed a desire for the option of a ride-hailing service, while 60% favoured a fixed-fare system.
Chair of the CCPC Brian McHugh said consumers are experiencing difficulties because innovation in the sector has not been adequately supported, reports RTE.
“Regulatory barriers in the taxi market have failed to facilitate innovations that have flourished in other countries, and consumers are suffering as a result. Our research shows a clear preference for more choice among consumers who are not getting the service they need.
“This is not about abandoning oversight or regulation. Any new entrants could and should be regulated to maintain high service and safety standards.
“Consumers and businesses deserve an innovative, functioning taxi sector that provides choice. Consumers shouldn’t be faced with long waits or the possibility of staying home due to a lack of taxi availability,” he said, reports RTE.
Speaking on RTÉ’s Morning Ireland, Mr McHugh said the existing market was failing to meet demand, as customers lack adequate supply and options when it comes to taxis.
He said introducing ride-hailing platforms would be regulated and would complement, rather than replace, the existing taxi fleet, reports RTE.
“It’s not delivering for consumers. So, we are looking for the market to be opened up, for there to be new entry, more taxi drivers.”
The survey also showed that 40% of people who attempted to secure a taxi last December encountered difficulties.
The CCPC is now urging the Government to eliminate significant regulatory hurdles in the taxi sector, reports RTE.
It said the aim is to strike a balance between safeguarding consumers and ensuring availability, while also fostering competition and innovation.
The research precedes the National Transport Authority (NTA)’s regulatory review of dispatch operator licensing, which is scheduled to commence later this year, reports RTE.
The CCPC said it anticipates engaging with the NTA during its consultation process.
In a statement the National Transport Authority said: “The NTA regulates taxis, hackneys and limousines under the 2013 Taxi Regulation Act. Our primary focus is on ensuring passenger safety, and creating a quality, accessible and environmentally sustainable taxi fleet.
“Drivers are vetted by An Garda SÃochána in order to be licenced to serve passengers, and the NTA sets vehicle standards to ensure taxis are safe and suitable.
“There are no caps on the number of licensed drivers and licensed taxis, hackneys and limousines in Ireland.” reports RTE.
The NTA also stated that at the end of January there were 27,955 SPSV licensed drivers and 21,071 licensed SPSV vehicles operating nationwide.
It said approximately 6,000 new drivers have joined the sector over the past three years, and that drivers may use their own cars provided they meet suitability criteria, hold licences and have appropriate insurance, reports RTE.
“In Ireland, taxis operate under a framework where maximum fares are set to protect consumers. The last decade has seen the entry into to the Irish market of numerous international ‘app-based’ dispatch operators who have brought innovation and convenience to drivers and passengers alike.
“These ‘ride hailing’ apps continue to expand, allowing passengers to easily access the supply of SPSVs in real time.
“Drivers can use more than one app. Traditional methods of booking taxis (hail on the street, local dispatch telephone service, taxi ranks) operate in parallel. The NTA estimates that 65% of taxis are booked through dispatch operator apps,” the statement added, reports RTE.
The NTA said it will consult on the regulatory structure concerning dispatch operators in the coming months and acknowledged the CCPC’s remarks while welcoming input from all stakeholders as part of the process.
It added that regarding rural transport, following consultation last Autumn, the NTA plans to shortly introduce new measures for Local Area Hackney services, reports RTE.
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