Ride-sharing services such as Uber, through which private drivers offer taxi services using their own car, will not be introduced to the Irish market, despite calls for doing so this week.
On Thursday, Minister for Transport Darragh O’Brien pushed back firmly on a recommendation from the Competition and Consumer Protection Commission (CCPC) to remove regulatory barriers to such services common in other countries.
He said the Government had “no intention” of doing so despite the CCPC call that came on the back of research it conducted that found a “significant share” of taxi users want the choice of ride-sharing (49 per cent).
“The model where anyone with a private car (not licensed as a small public service vehicle) and an app can provide taxi services does not exist in Ireland,” O’Brien said. “It is not Government policy and there is no intention to introduce it.”
He said the “protection of the consumer and personal safety are vital objectives and must continue to be central to how the taxi and hackney sector is regulated and operated”.
He admitted the structure of the taxi and hackney market had “undoubtedly changed” since liberalisation of the market took place and “more notably in recent years” in relation to the role of dispatch operators.
“I have requested that the National Transport Authority (NTA) conduct a regulatory assessment of dispatch operator licensing in Ireland in the context of ensuring that the regulatory framework for this element of the overall sector is sufficiently up to date and robust to respond to developments since the enactment of the Taxi Regulation Act 2013.
“A sustainable taxi sector is an important element of our transport system, and I encourage taxi drivers, passengers, the CCPC and all stakeholders to take the opportunity to feed into this important piece of work.”
Companies such as Uber do currently operate in Dublin, but regulations mean they can only act as a booking agent for licensed taxi drivers, rather than work as a ride-hailing service.
Ride-hailing platforms, including Uber and Bolt, connect private drivers to passengers via apps.
Uber welcomed the call from the CCPC and said it was “clear” O’Brien and the NTA “need to begin a serious reform process that improves access and availability for consumers and drivers”.
“We support the Taxis for Ireland Coalition call for a national taxi strategy that strengthens the market while supporting a well regulated industry,” the group added.
CCPC chairman Brian McHugh said: “Regulatory barriers in the taxi market have failed to facilitate innovations that have flourished in other countries, and consumers are suffering as a result.
“Our research shows a clear preference for more choice among consumers who are not getting the service they need.”
[ Irish people should have the option of calling an Uber or a BoltOpens in new window ]
McHugh said it was not a case of abandoning oversight, and that new entrants should be regulated to maintain safety and standards, but that consumers and businesses deserved an “innovative, functioning taxi sector” that provides choice.
“Consumers shouldn’t be faced with long waits or the possibility of staying home due to a lack of taxi availability.”
McHugh said the CCPC was calling on the Government to remove “key regulatory barriers” in the taxi market so that it can be more responsive to consumer needs and align better with “how transport systems are evolving all over the world”.
“The goal is to achieve a balance that protects consumers and ensures access, while also allowing competition and innovation to improve the market,” he said.
“We look forward to engaging with the NTA in their consultation process and to exploring all solutions that might increase capacity and choice.”