Irish taxi market should be opened up, consumer watchdog says

By Cillian Sherlock, Press Association

The Government should remove regulatory barriers for ride-hailing apps such as Uber and Bolt, according to the State consumer watchdog.

The Competition and Consumer Protection Commission (CCPC) is recommending the move after identifying a supply shortage in the taxi sector.

It said removing regulatory barriers, such as requiring new entrants to have wheelchair-accessible vehicles, would respond to consumer needs and align with other countries.

The recommendation comes ahead of the National Transport Authority’s (NTA) regulatory assessment of the licensing of dispatch operators, which is due to begin later this year.

The CCPC’s research found that four in 10 people who tried to get a taxi in December reported difficulties doing so.

It also found that almost two-thirds of those living in rural areas say there are not enough taxis.

The CCPC said almost half of taxi users wanted the choice of ride hailing services.

Consumers and businesses deserve an innovative, functioning taxi sector

Ride-hailing platforms such as Uber and Bolt connect private drivers using their own cars to passengers via apps, with some drivers operating on a part-time basis.

The CCPC said ride-hailing apps in other jurisdictions offered consumers with a much broader choice around the type of vehicle, as well as price.

Some 60 per cent of participants in a nationally representative study for the research also supported fixed-fare offerings.

Dublin taxi drivers staged a series of rush-hour protests in the capital over fixed-fare systems.

CCPC chairman Brian McHugh said: “Regulatory barriers in the taxi market have failed to facilitate innovations that have flourished in other countries and consumers are suffering as result.

“Our research shows a clear preference for more choice among consumers who are not getting the service they need.”

McHugh said the move would not be about “abandoning oversight or regulation”.

He said any new entrants should be regulated to maintain high service and safety standards.

He said the CCPC strongly supports safeguards and requirements around new drivers, such as garda vetting, but said there should be an openness to discussing requirements on vehicle standards.

McHugh said: “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.”

McHugh said the “blunt instrument” of requiring new entrants to the taxi market to have wheelchair-accessible vehicles was affecting barrier to entry and limiting supply for all customers, including those who used wheelchairs.

This is because wheelchair users are seeking the same taxis as the wider population amid an overall supply shortage.

McHugh questioned why the “burden” of requiring a wheelchair-accessible car was placed on new entrants but not old licencees getting new vehicles.

He said the CCPC would “question” that requirement, adding that it was a “big issue” for increasing taxi drivers and ride-hailing drivers in Ireland who may want to use their own cars that are not wheelchair-accessible.

This could also serve as a barrier to someone wanting to drive on a part-time basis, for example at weekends between another job.

McHugh said Ireland could not have a functioning taxi market without new entrants.

He said Ireland had seen a 40% reduction in taxis per person while London had seen a surge in licensed vehicles following a different regulatory regime.