Limo boss gets the ride- sharing bug
ANZ has become the third of Australia’s big four banks to raise mortgage rates since the US Federal Reserve hiked its cash rate last week.
ANZ said yesterday it was raising variable rates for investor and interest- only mortgages, leaving Commonwealth Bank as the only major lender not to move since the Fed’s decision.
ANZ’s investor loan rate will rise by 0.25 percentage points from next Friday to 5.85 per cent, while new interest- only investor loans will rise by 0.36 percentage points to 5.96 per cent and new owner- occupier interest- only loans will rise 0.20 percentage points to 5.45 per cent.
Unlike National Australia Bank and Westpac, ANZ will not increase lending costs for residential borrowers. WANT to ride- share a limo? One Townsville- based transport group certainly thinks there is a good market for this, and is about to take on ride- share juggernaut Uber at its own game.
Organised Transport, which runs the biggest fleet of taxis in Townsville, has just acquired Acacia Limousines Townsville.
The limo company’s fleet of about 20 luxury vehicles is being fitted for the new Acacia ride- sharing app to be launched shortly.
It will provide the features that has seen people flocking to Uber, such as upfront payment, car tracking, the ability to rate drivers and, perhaps most importantly, lower prices. Organised Transport CEO Les Gist said they were retaining Acacia’s current services directed at stretch and standard limousine hire, but were adding ride- share for the passenger market.
“We want to concentrate on the business market and the lower end of the passenger market, where the public are looking for something between a bus and a taxi. That’s where rideshare is going to fit into the equation,” Mr Gist said. “We believe it’s a fair size market.” Mr Gist said their acquisition was a case of “survival in the market”.
“We have to have every facet, every segment, of the passenger transport market,” Mr Gist said. “Due to the downturn in the economy in Townsville, and with the uncertainty of passenger transport, to survive and make your business constantly grow, we have to move into these areas.
“You’ve got to forget Uber and go out and compete with them.”
He hoped people would respond to a locally owned group employing around 200 people providing superior service, but which was able to leverage on the lower fares made possible by drastically reduced operating costs under ride- share regulations.
Mr Gist said the difference in costs compared with regulated taxis was around $ 60,000 a year per vehicle.
“That’s why you get lower prices on ride- share,” Mr Gist said.
He holds much of his ire for a State Government which had effectively “stolen money” from the industry and now was throwing away revenues. “They got bad advice,” he said. He believed taxi licence values, now in limbo, would find a new floor in years to come.
Organised Transport operates 41 taxis in the Townsville region, operates a mechanical workshop and panel beating workshop, a registered training organisation which is moving into apprentice motor mechanic and panel beating training, and now Acacia Limousines. The Acacia app is due to start operating on May 1.