The Australian taxis have always claimed that they are under pressure from all angles because of the rising cost of fuel, stiff competition from the rideshare companies and rogue cowboy unlicensed drivers.
Over the last few weeks, petrol and diesel prices hit all time high levels as prices for unleaded gasoline went past $2.25 a litre while diesel increased to over $2.65.
This rise in petrol and diesel price has been caused primarily by the Middle Eastern oil crisis where the oil supply through the Strait of Hormuz was disrupted causing crude oil prices to rise above $120 a barrel.
The impact of this rise in fuel prices has been catastrophic for the already struggling taxi drivers since unlike the rideshare companies that utilize algorithms to make pricing adjustments.
Uber has raised its prices in Australia, which has led to an average 6% increase in driver pay.
DiDi has added a temporary five cent per kilometer fee to help pay for its drivers gas.
But traditional cab companies don’t have that kind of freedom. Industry experts say that this system was never meant to handle a shock of this speed and size.
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Moreover, the issue has been further exacerbated due to a phenomenon referred to as a flood of unlicensed drivers by some seasoned operators.
These rogue cowboys make use of informal networks and social media forums to provide private transport services without insurance, accreditation, or even a vehicle check.
They pick routes that offer high returns and operate during times when there is high demand, which gives them an edge over legitimate operators who have the responsibility of paying for all the costs associated with licenses, cameras, wheelchairs, etc.
Recently, the Victorian Government has initiated a range of reforms to curb non compliance among these drivers, such as imposing heavy fines on misbehavior and mandatory QR codes that link complaints against drivers.
However, it has been observed that enforcement continues to be inconsistent at best.
Industry groups have been saying for a long time that Uber’s controversial entry into Australia in 2014 made the playing field between taxis and rideshare uneven.
According to industry statistics, there has been a reduction in the number of taxis and limousines operating in Australia, with an average annual decrease of 1.8% over the past five years leading to 2024.
For the drivers who continue to come to work daily, the calculations become increasingly difficult.
Every time fuel is filled, it reduces the income earned even before the trip begins, every ride offered by Uber takes another client away from the queue and each private vehicle without a license reduces the relevance of the industry.
