Essential Services Commission (Victoria) releases draft report on taxi fares

The Essential Services Commission (ESC) today released its draft report on the regulation of maximum taxi fares in Victoria.

In its draft report, the ESC describes the changing nature of the commercial passenger vehicle services market, with taxis facing increasing competition from alternative service providers. Although no change to the overall level of fares is proposed, the ESC has sought to increase the flexibility of fares at peak times so that providers may better respond to competitors offering a higher-priced, higher quality service.

The report also reveals the impact that entry of other point-to-point service providers, such as Uber, are having on the demand for taxi services. Data from the first half of 2015 indicates a significant and accelerating decline in the number of metropolitan taxi trips – a four per cent year on year decline in the January to March quarter, followed by a 9 per cent year on year decline in the April to June quarter.

Frontier (Australia) assisted the ESC in preparation of the report, and regularly advises clients in the transport sector.

For more information, please contact Marita O’Keeffe at or phone +61 3 9620 4488.


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