Taxi passengers could pay up to $10 extra for booking in peak hours, including Friday and Saturday nights and the eve of public holidays, if a proposal of review of taxi fares is adopted.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The Essential Services Commission, which is the independent regulator responsible for determining the maximum taxi fares, proposed the fee in a draft report released on Tuesday.
They report found taxi demand increases on Friday and Saturday nights from 6-7pm, but the number of taxis in operation from 7pm on Friday nights begins to decline.
It also found that customers were having difficulties in booking taxis with traditional taxi network during peak times, with calls often going unanswered.
In a bid to encourage taxi drivers to work during peak hours, the report proposed a peak booking charge that would be capped at a maximum of up to $10 from 7pm on Friday and Saturday nights, instead of 10pm when it currently applies.
The rates would also apply from 7pm on nights prior to all public holidays and continue to 4am the next day.
Passengers would be slugged with the $10 booking fee in addition to the separate $2 booking fee, $6.20 flagfall, and added charges for distance rate and waiting time.
Commission Chair Dr Ron Ben-David taxis were now "operating in a competitive environment so it's up to the taxi industry to lead the way in creating attractive services offerings for customers."
"We're concerned that there aren't enough taxis on the road on Friday and Saturday nights and on the evenings before public holidays, meaning customers often have to wait for long periods before finding a cab."
The report found customers were increasingly "switching to alternative commercial passenger vehicle services – that is, services that are booked".
"With greater competition in the market for booking services, and advances in smartphones technology driving new and innovative booking methods, we believe there is merit in allowing for a 'maximum peak booking charge'," the report said.
The Essential Services Commission has requested submissions on its draft recommendations and a final decision by is expected by June 19.
A Victorian Taxi Association (VTA) spokeswoman said: "In principle, the VTA strongly supports the approach taken by the ESC to allow a greater role for taxi businesses in the pricing of their services".
