SURVIVAL IN A COMPETITIVE TAXI MARKET WILL DEPEND ON TAXIS, CURRENTLY ORGANISED INTO BIG GROUPS/NETWORKS BREAKING UP INTO SMALLER GROUPS EACH WITH CONTROL OF THEIR OWN PRICING (FARES). In regional & country Victoria in nearly all markets (Warrnambool is an exception) there is only ONE taxi network - some are co-operatives and the rest are operated by the SINGLE NETWORK OWNER. The Victorian Taxi Industry Inquiry said that the control of monopolies must be broken if CUSTOMERS are to get better value-for-money and geater accessibility to services and CHOICE OF PROVIDER! Soon, we will see the beginning of the breaking of monopolies - access to INDEPENDENT AND INEXPENSIVE DISPATCH FACILITIES IS ABSOLUTELY KEY TO THAT HAPPENING! WATCH THIS SPACE! It may even come to pass that those who are such strident critics of our views will soon put their anger and opposition aside AS THEY (FINALLY) REALISE THE INEVITABILITY OF MASSIVE STRUCTURAL CHANGE IN THE INDUSTRY and as they look for something different to meet the great challenges presented by a competitive market. _____________________________________________________________ CONSUMER CHOICE IS A FUNDAMENTAL CHARACTERISTIC IN A TRULY COMPETITIVE MARKET. THE AUSTRALIAN TAXI INDUSTRY IS NOT AT ALL COMPETITIVE! ______________________________________________________________ The structure of the taxi industry (in other words the business model) IS ALL WRONG as there are just too many people sucking at the teat and there is nowhere near enough milk to keep doing this. No longer can the industry AFFORD to pay a growing army of licence holders NONE OF WHO NOW WORK IN THE INDUSTRY, support FLEET operators (as opposed to single owner/drivers) AND PAY DRIVERS A JUST & PROPER WAGE. We believe that no taxi licence holder, taxi operator and/or taxi associations/councils can mount any credible argument whatsoever TO JUSTIFY THE RANK EXPLOITATION OF CONTRACTED TAXI DRIVERS. No-one has, EVEN ONCE, challenged the view that CONTRACTED TAXI DRIVERS ARE SCREWED BY ALL OTHER INDUSTRY PARTICIPANTS. This is AN INESCAPABLE TRUTH! THE VICTORIAN TAXI & HIRE CAR REFORMS ARE DESIGNED FOR A NUMBER OF IMPORTANT REASONS - NOT ALL OF THEM TO DO WITH OPENING THE MARKET TO COMPETITION. THE INDUSTRY WILL BE FORCED (IN TIME) TO THE SINGLE OWNER/DRIVER BUSINESS MODEL AND, AS THAT HAPPENS, THE GROSS, REPREHENSIBLE AND CRUEL EXPLOITATION OF CONTRACTED TAXI DRIVERS WILL DIMINISH. Words are hollow and carry no weight at all and it is no good other industry participants saying We value taxi drivers. That is not at all true - MONEY IS THE NAME OF THE GAME AND A LOT MORE MONEY FOR TAXI DRIVERS WOULD MARK THE BEGINNING OF THE LONG JOB TO FIX THE TAXI INDUSTRY. The single owner/driver model will be the ONLY model for new hire cars in regional & country areas. That will mean that taxi operators who use contracted drivers (who, after all, TAKE 55% OF THE TOTAL REVENUE!) will not be able to compete on PRICE! THIS INDUSTRY IS A FINANCIAL FAILURE - IT CANNOT EVEN PAY THE WAGES! In the REAL world, the taxi industry would be declared INSOLVENT - AND BE WOUND UP BY THE SUPREME COURT. If anyone disagrees with the view that taxi drivers are paid about 50% of the minimum wage (remember, this wonderful taxi industry CANNOT EVEN PAY ANNUAL LEAVE OR SUPERANNUATION - AS ALL OTHER SUCCESSFUL BUSINESSES ARE REQUIRED TO DO BY LAW) and that this is totally unacceptable in the 21st century workplace, LET THEM ARGUE WHY THEY BELIEVE THAT THE EXPLOITATION SHOULD BE ALLOWED TO CONTINUE ANY LONGER! New market entrants (taxis & hire cars) will come along and, using the single owner/driver business model, offering lower fares, providing top service and NOT EXPLOITING OTHERS will enjoy HIGH OCCUPANCY and will make an HONEST living (by not exploiting others).
Posted on: Wed, 29 Oct 2014 09:52:32 +0000
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