London-Style Mini-Cabs Flagged for Melbourne

Victoria faces a taxi revolution that could see the introduction of London-style mini-cabs, strangers sharing rides and smartphone technology to help passengers find drivers.

Professor Allan Fels, who is chairing the Taxi Industry Inquiry, said yesterday that Victorians believe taxis are too expensive but underpaid drivers are fuelling record levels of customer unhappiness.

Disabled people who are forced to wait three hours for taxis and young people who drive home drunk because they can't afford a fare are just some of the consequences of the industry's systematic problems, he said. The inquiry, expected to take another six months, was launched by the Baillieu government in March to investigate the industry and formulate recommendations to improve it.

Speaking at the release of the inquiry's findings, Professor Fels said massive reform was needed to improve the system including ensuring the Victorian Taxi Directorate handles complaints better. In London, registered drivers operate ''mini-cabs'' that are effectively private-hire vehicles and offer a set rate for a point-to-point service. Professor

Fels said set fares in taxis were currently illegal in Victoria but submissions to the inquiry were calling for their introduction in order to boost competition and give passengers greater flexibility.

Shuttle-bus-style low-cost services that pick up several passengers could also be on the agenda, he said.

He said while smartphones such as the iPhone were currently used to make bookings through some operators, a recent meeting of economists convened by the inquiry found technology could be expanded to allow passengers to choose nearby drivers online.

''Smartphone technology allows passengers to see who the drivers are, where their taxis are, what other customers have said about them and how much the fare is.''

Wheelchair user Alicia Appleby said she often faced long waits for maxi-cabs because operators did not view disabled passengers as a priority, with Professor Fels pledging to fix this.

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