Minister says ‘no intention’ of cutting taxi regulations, despite watchdog’s call for removal of Uber restrictions

In a move that will infuriate the taxi industry, the Competition and Consumer Protection Commission (CCPC) is recommending that all drivers be allowed to use their own cars to provide taxi rides, without needing a special licence. This would mean they would be regulated only for safety and service.

However, Transport Minister Darragh O’Brien said on Thursday that the Government had “no intention” of allowing ‘ride-sharing’ in Ireland.

Uber, which has been operating in the Dublin market since 2014, is not allowed to use private cars to pick up passengers, as it does in other countries.

The CCPC says the status quo is holding back innovation in the industry, and means a lack of choice for customers, as well as the prospect of long waits or staying at home because of problems with taxi availability.

In other jurisdictions, firms such as Uber operate ‘surge pricing’ which is based on demand. This means fares can be cheaper than traditional taxis at times, often for shorter trips and off-peak journeys.

Last November Uber introduced “fixed fares” in Ireland, but this sparked protests from hundreds of taxi drivers in Dublin.

Were the Government to go along with the CCPC’s suggestion, it would be the biggest shake-up of the taxi industry since deregulation in 2000, when the value of a plate went from as much as €100,000 down to almost nothing.

The National Transport Authority (NTA), which is responsible for the sector, has previously said that having a non-regulated regime would be undesirable, as it would undermine the regulated system.

But the CCPC claims there is now a shortage of taxis nationwide, and it has published the results of a survey that found four in 10 people who tried to hail a cab in December reported difficulties doing so.

Almost two-thirds of people living in rural areas say there aren’t enough taxis, the survey also found, and 60pc want the option of paying a fixed fare instead of having to pay the metered amount.

The taxi industry staged a series of protests in December after Uber announced it was launching a fixed-price service. This would mean users could agree a fare before their trip. The industry said drivers would lose out if a journey took longer than expected, due to traffic congestion or roadworks

Brian McHugh, chairman of the CCPC, said regulatory barriers in the Irish taxi market are not allowing innovations that work in other countries, and consumers are suffering as a result.

The goal is to achieve a balance that protects consumers and ensures access, while also allowing competition and innovation

“Our research shows a clear preference for more choice among consumers who are not getting the service they need,” he said.

“Consumers shouldn’t be faced with long waits or the possibility of staying home due to a lack of taxi availability.

“This is not about abandoning oversight or regulation. Any new entrants should be regulated to maintain high service and safety.”

He said the CCPC is calling on the Government to take away the key regulatory barriers so that the market aligns 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.

The competition authority’s argument is that there are now fewer taxis available per head of population than there were in the 2000s, following deregulation.

Ireland’s population has grown by over 40pc since the turn of the millennium. In the same time period, the number of licensed taxis has increased by only about 10pc, to the current 17,500.

A number of European countries – including France and the UK – allow both traditional taxis and ride-hailing services.

As well as insufficient taxis, the CCPC is unhappy with the barriers for entry to the sector. For example, new taxi drivers must buy wheelchair-accessible vehicles, which are more expensive, and this is acting as a deterrent to ride-hailing services.

The survey commissioned by the CCPC, carried out by Ipsos B&A, found that 49pc of taxi users would like the option of being able to choose a ride-hailing service.

However, the resistance from the industry before Christmas to Uber’s proposal to give a fixed-fare option was an illustration of just how much opposition the Government is likely to face if it attempts to deregulate further.

‘No intention’

Transport Minister Darragh O’Brien on Thursday said the Government has “no intention” of cutting regulation to allow anyone with a car to provide taxi services.

In a statement, Minister O’Brien said the protection of the consumer and personal safety are vital objectives and must continue to be central to how the taxi sector is regulated and operated.

“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. It is not government policy and there is no intention to introduce it,” he said.

Minister O’Brien acknowledged that the structure of the taxi and hackney market has chance since deregulation in 2000, and particularly in recent times because of the role of dispatch operators. These are platforms such as Uber, Bolt and Freenow that take booking requests from passengers and pass them on to licensed drivers.

“I have requested that the National Transport Authority conducts 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,” the minister said.

He asked the CCPC, taxi drivers and passengers to make submissions to the review.

The general manager of Freenow said while there are supply challenges in rural areas, simply increasing driver numbers won’t solve the problem.

“Most taxi drivers work in urban centres where demand is concentrated. A sharp increase in new licences would likely skew the balance further towards cities, leaving rural areas no better served,” said Danny O’Gorman.

“A sudden influx of new entrants would undermine the ability of existing SPSV-licensed professionals to earn a stable income. Our research shows that proposals to deregulate the sector could see drivers lose nearly €400 a month in earnings.”

The Freenow boss claimed that over half its drivers would consider leaving the sector if unlicensed operators were allowed.

“Full deregulation is a race to the bottom that would inevitably lead to a decline in service quality. We believe the key to improving the taxi industry is through targeted measures, such as reform to the Local Area Hackney Scheme,” he added.

Welcoming the report, Uber said it was clear that the Minister for Transport and the NTA need to begin a “serious reform process that improves access and availability for consumers and drivers”. A spokesman said it supported calls for a National Taxi Strategy that strengthens the market while supporting a well-regulated industry.

The Taxis for Ireland Coalition (TFIC) said the CCPC report was an important intervention that should kickstart a wider conversation about industry reform.

The group was formed in 2023 and brings together organisations that say they need a functioning taxi system, such as the Restaurants Association of Ireland, and the Licensed Vintners’ Association.

Adrian Cummins, CEO of the restaurants’ association, said: “We all know that the current approach isn’t working – particularly at peak times, and for rural Ireland. It is time to start the conversation on meaningful reform of the taxi industry, involving all stakeholders, with a clear focus on delivering a modern, fit-for-purpose taxi system that people can rely on.”