Leo does U-turn on call for taxi industry to be deregulated
THE taxi industry should not be deregulated to allow platforms such as Uber to fully enter the market, the Taoiseach has said.
His comments mark a Uturn on previous remarks he had made about liberalising the industry.
Speaking in the Dáil last week, Leo Varadkar said: ‘I have concerns around deregulation. First, it would mean drivers are not vetted or regulated, at least by a public authority, and would mean that the vehicles involved would not be checked by a public authority.
‘We do not propose to go down that road. However, we should try to make it easier for people to provide a service, particularly at peak times when it is most needed, but that is not full deregulation. We do not propose that and I would not support it.’
This was a change of heart from the Taoiseach, who said in June 2022 that the Government may reconsider introducing ride-sharing services to address the taxi shortage in the capital.
He said at the time: ‘What I find is when you go to other countries, you’ve got other options, whether it’s public transport and also things like Uber and Lyft and things like that. They’re just not available in Ireland in the same way. Maybe we need to look at that again, and see if we can liberalise [the sector].’
Uber and Lyft are apps that link customers to pay for travel in private cars with drivers for a commission, but the firms do not own any of the vehicles. While Uber is available in Ireland, it is used by regulated taxis and not private cars.
A spokesman for FreeNow, which most taxi drivers use, said it ‘fundamentally disagreed’ with any push for deregulation in the industry. The spokesman said FreeNow was ‘in full support’ of the Taoiseach’s most recent commitment to maintaining a regulated taxi framework.
‘The existing regulated framework ensures high standards and practices among taxi drivers including relevant taxi driver accreditations, taxi vehicle maintenance and Garda clearance,’ said the spokesman.
‘The enforcement of these standards by the NTA [National Transport Authority] is vital in supporting passenger safety, facilitating a quality service for members of the public, and ultimately safeguarding a resilient and viable sector into the future.’
Earlier this month, Bolt, a separate taxi-hailing service, said that 43% of taxi requests in Dublin and 56% in Cork go unfulfilled, costing the local economy millions.
Bolt is a part of a coalition that is calling for the sector to be ‘liberalised’.
However, a source said: ‘The coalition is pushing to deregulate the taxi sector to allow ride-hailing by the backdoor. The Bolt report on their data was interesting – saying 50% of Dublin requests go unfulfilled is rubbish.’
The source claimed that some ride-sharing apps do have 50% of their requests go unfulfilled because they don’t have many drivers.
Last month, Donall O’Keeffe, CEO of the Licensed Vintners Association, said of the issue of transport: ‘The current taxi shortage poses a direct threat to our late-night economy – bars, late bars and nightclubs – with customers leaving venues early due to the difficulties they will face in getting taxis home.
‘The safety of our patrons is of paramount importance, yet the taxi shortage is affecting this. We are calling for measures to rectify the shortfall and protect the late-night economy of our capital city.’
Adrian Cummins, CEO of the Restaurants Association of Ireland, stated: ‘The scarcity of taxis is disrupting the dining experience for our customers, with many facing challenges just getting to and from rural and urban restaurants.’ He said this shortfall ‘urgently needs to be rectified to ensure the viability of our restaurants’.
‘Rectify the shortfall’