Cabcharge drives losses down

CABCHARGE says the taxi industry has a future alongside personal transport disruptors such as Uber after the cab company narrowed its fullyear profit loss by more than $88 million.

Chief executive Andrew Skelton says Cabcharge is trying to lift its profile among younger consumers after recent moves to improve marketing and technology. “We’re able to communicate with some of those cohorts and say, ‘reconsider taxis’,” he said.

The taxi payment service and fleet operator reduced its loss to $2.22 million from $90.6 million a year earlier, while its revenue for the 12 months ending June 30 rose 22 per cent to $185.5 million.

Mr Skelton said the company had lifted fleet size 28 per cent and investments in marketing had helped the company grow despite competition.

Uber has established a presence because it exists outside of the regulatory sphere and was able to cash-in on the demand for trips without being limited by the number of vehicles it had servicing the sector, he said.

“So the frustration people had on Friday and Saturday night when they couldn’t get a taxi manifested itself in competition,” Mr Skelton said. “The taxi industry needs to find ways to expand and grow and service that growing demand.” Loosening of regulations in Victoria has allowed more taxis into the market to pick-up that demand.

“That is a very dramatic fix to taxi industry growth, but what has happened there is proof that the demand for trips exists, and the taxi framework is a well-supported and very effective mechanism for servicing passengers,” he said.

Mr Skelton said taxis are beginning to claw back a share of the market, particularly with Millennials.

Driver ratings also improved, up to 4.4 stars on average from 3.1 stars for 2017/18.

The company will pay a fully franked final dividend of four cents a share.