Taxi hailing apps should compete on level playing field

The ACCC should focus on regulating monopolies and keep their nose out of regulating the details.

The ihail app should be allowed, as long as taxi drivers aren’t prevented from using other apps, and all taxi apps (including goCatch and ingogo) have equal access to taxi communication and booking networks — which are near-monopolies. Any preferences for ihail should be removed, so all hailing apps compete on a level playing field (or more accurately, a level driving field).

However, all other differences between ihail and the other taxi hailing apps are perfectly acceptable. As long as equal access is guaranteed, other issues -including ihail’s potential market share or the financial viability of other hailing apps – should be ignored, contrary to the ACCC’s comments.

Therefore, ihail should be allowed to mandate payment by Cabcharge, as there is no monopoly in payment services, and ihail should be allowed to provide incentives to drivers for better, faster service. Users will choose ihail, goCatch or ingogo based on the variety of services they offer, and taxi drivers will choose which apps to use based on the benefits. Equal access to the taxi networks should ensure there are no competition issues.

However, there is a broader issue. All these booking apps simply permit easier access to an overpriced and inefficient taxi system. Competition is best served, not by just increasing access to taxis, but by increasing competition for broader transport services.

Regulations that outlaw ride-sharing services (such as Uber and Lyft) should be removed; this will allow much more substantial improvements in efficiency and quality of services than merely opening up the hailing of taxis to more competition. And if Uber and Lyft are permitted, then ihail should be allowed to have preferential access to taxi booking networks. The competition provided by Uber and Lyft will minimise any damage to the customers.