Comments on: Why taxi fares are high and taxi driver wages low http://andrewnorton.info/2008/05/why-taxi-fares-are-high-and-taxi-driver-wages-low/ Observations from Carlton's Lone Classical Liberal Mon, 01 Dec 2008 20:57:52 +0000 http://wordpress.org/?v=2.5.1 By: Andrew Norton » Blog Archive » Taxi users ripped off again http://andrewnorton.info/2008/05/why-taxi-fares-are-high-and-taxi-driver-wages-low/#comment-62277 Andrew Norton » Blog Archive » Taxi users ripped off again Thu, 20 Nov 2008 20:41:15 +0000 http://andrewnorton.info/?p=470#comment-62277 [...] I noted in May, it is nearly 30 years since the CIS started publishing critiques of taxi regulation, with most [...] [...] I noted in May, it is nearly 30 years since the CIS started publishing critiques of taxi regulation, with most [...]

]]> By: Scott http://andrewnorton.info/2008/05/why-taxi-fares-are-high-and-taxi-driver-wages-low/#comment-26469 Scott Tue, 26 Aug 2008 09:10:22 +0000 http://andrewnorton.info/?p=470#comment-26469 It sounds to me like the reason why "taxi plates" cost so much is due to an artificial constraint of supply induced by the government. It sounds to me like the reason why “taxi plates” cost so much is due to an artificial constraint of supply induced by the government.

]]> By: Shebe http://andrewnorton.info/2008/05/why-taxi-fares-are-high-and-taxi-driver-wages-low/#comment-16021 Shebe Thu, 19 Jun 2008 00:14:43 +0000 http://andrewnorton.info/?p=470#comment-16021 It makes my blood boil to hear people say taxi fares are so high. People expect a chauffeur for peanuts. Bus fares to town in Newcastle from an outter suburb costs $5.00 per head. $20.00. So how do people get to complain that the same distance in a cab is $30.00. You have pick up at the door and drop off at the door in comfort. How much is a drink late at night? $9.00 for one. Wake up and pay up! It makes my blood boil to hear people say taxi fares are so high. People expect a chauffeur for peanuts. Bus fares to town in Newcastle from an outter suburb costs $5.00 per head. $20.00. So how do people get to complain that the same distance in a cab is $30.00. You have pick up at the door and drop off at the door in comfort. How much is a drink late at night? $9.00 for one. Wake up and pay up!

]]> By: Deep http://andrewnorton.info/2008/05/why-taxi-fares-are-high-and-taxi-driver-wages-low/#comment-15379 Deep Mon, 09 Jun 2008 01:54:03 +0000 http://andrewnorton.info/?p=470#comment-15379 Whenever they increase fare we lose in buisness, everything going high from petrol to simple grocery, But as i m a taxi driver i m earning the same as i was earning 10years ago P/Shift. Before there were too many jobs under $10 but now just MPTP:(.time to leave otherwise too late ... Whenever they increase fare we lose in buisness, everything going high from petrol to simple grocery, But as i m a taxi driver i m earning the same as i was earning 10years ago P/Shift. Before there were too many jobs under $10 but now just MPTP:(.time to leave otherwise too late …

]]> By: Sacha http://andrewnorton.info/2008/05/why-taxi-fares-are-high-and-taxi-driver-wages-low/#comment-13544 Sacha Fri, 09 May 2008 07:23:18 +0000 http://andrewnorton.info/?p=470#comment-13544 There were different taxi rates for different taxi companies in Hanoi a few years ago, if I remember correctly. There were different taxi rates for different taxi companies in Hanoi a few years ago, if I remember correctly.

]]> By: M J Warby http://andrewnorton.info/2008/05/why-taxi-fares-are-high-and-taxi-driver-wages-low/#comment-13450 M J Warby Tue, 06 May 2008 07:31:35 +0000 http://andrewnorton.info/?p=470#comment-13450 The dynamics of taxi license value is exactly the same as the dynamics of house prices. The government restricts entry to a resource in demand, less gets supplied than otherwise would, prices mount and public policy becomes dominated by protecting the value of the asset then created. There is no solution except getting rid of the discretionary power of officials over market entry. The problem is how to get there from here. The dynamics of taxi license value is exactly the same as the dynamics of house prices. The government restricts entry to a resource in demand, less gets supplied than otherwise would, prices mount and public policy becomes dominated by protecting the value of the asset then created. There is no solution except getting rid of the discretionary power of officials over market entry. The problem is how to get there from here.

]]> By: Andrew Norton http://andrewnorton.info/2008/05/why-taxi-fares-are-high-and-taxi-driver-wages-low/#comment-13372 Andrew Norton Mon, 05 May 2008 07:52:04 +0000 http://andrewnorton.info/?p=470#comment-13372 sfw - I guess it depends on how many fares they get. But I agree that it does sound low. sfw - I guess it depends on how many fares they get. But I agree that it does sound low.

]]> By: sfw http://andrewnorton.info/2008/05/why-taxi-fares-are-high-and-taxi-driver-wages-low/#comment-13359 sfw Mon, 05 May 2008 06:22:44 +0000 http://andrewnorton.info/?p=470#comment-13359 $8 Hour! Bullshit! Taxi drivers get 50% of the fare and the licence holder has to pay for the cab , the maintenance, running costs and the licence and make a profit. Now if the taxi was only returning $8 hour before costs do you think that the licences would sell for so much? Nope either the drivers are underestimating their pay or they are not getting the 50% or something else is wrong. Either way I smell something fishy. $8 Hour! Bullshit! Taxi drivers get 50% of the fare and the licence holder has to pay for the cab , the maintenance, running costs and the licence and make a profit. Now if the taxi was only returning $8 hour before costs do you think that the licences would sell for so much? Nope either the drivers are underestimating their pay or they are not getting the 50% or something else is wrong. Either way I smell something fishy.

]]> By: Christian http://andrewnorton.info/2008/05/why-taxi-fares-are-high-and-taxi-driver-wages-low/#comment-13094 Christian Sat, 03 May 2008 08:46:04 +0000 http://andrewnorton.info/?p=470#comment-13094 The Productivity Commission did produce a research paper on the taxi industry back in 1999: http://www.pc.gov.au/__data/assets/pdf_file/0019/8281/taxiregulation.pdf The closest I have seen to an international comparision of taxi regulation is in the annex of an UK Office of Fair Trading study of the UK taxi industry, didn't consider Singapore though: http://www.oft.gov.uk/shared_oft/reports/comp_policy/oft676annexej.pdf The Productivity Commission did produce a research paper on the taxi industry back in 1999: http://www.pc.gov.au/__data/assets/pdf_file/0019/8281/taxiregulation.pdf

The closest I have seen to an international comparision of taxi regulation is in the annex of an UK Office of Fair Trading study of the UK taxi industry, didn’t consider Singapore though: http://www.oft.gov.uk/shared_oft/reports/comp_policy/oft676annexej.pdf

]]> By: Spiros http://andrewnorton.info/2008/05/why-taxi-fares-are-high-and-taxi-driver-wages-low/#comment-13088 Spiros Sat, 03 May 2008 06:16:50 +0000 http://andrewnorton.info/?p=470#comment-13088 "Perhaps the PC should undertake an international study of the taxi industry and make some recommendations." Nah, it's a state government issue. IPART has just done a review of taxi fares in NSW. $372,000 for a plate, they reckon. That's a lot of rents. While we're on the subject of taxis and ripoffs, what abot cabcharge, with its 10% premium on top of your fare when you pay by credit card? “Perhaps the PC should undertake an international study of the taxi industry and make some recommendations.”

Nah, it’s a state government issue.

IPART has just done a review of taxi fares in NSW. $372,000 for a plate, they reckon. That’s a lot of rents.

While we’re on the subject of taxis and ripoffs, what abot cabcharge, with its 10% premium on top of your fare when you pay by credit card?

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