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A properly regulated taxi industry is best for customer and driver

Taxi market faces genuine difficulties but reducing the issue primarily to regulatory barriers risks overlooking why those regulations exist

Letters to the Editor. Illustration: Paul Scott
The Irish Times - Letters to the Editor.

Sir, – Brian McHugh’s call for expanded ride-hailing services presents a tidy solution: more drivers, more competition, better outcomes for consumers (“Irish people should have the option of calling Uber or Bolt,” February 19th). The reality, however, is rarely so straightforward.

Uber’s history in other markets is well documented. Initial entry is often driven by heavy subsidies and artificially low pricing, placing immediate pressure on existing operators. Once competitors weaken or exit, pricing models tend to shift. Consumers may gain short-term convenience, but this frequently comes at the expense of long-term market balance and transparency. Describing this pattern as simple “innovation” ignores the commercial mechanics at work.

Safety considerations also warrant greater scrutiny. Uber’s own safety disclosures in the United States have reported thousands of serious incidents over recent years. While no transport system is immune from risk, these figures challenge the assumption that platform-based ride services inherently represent a safer alternative.

Ireland’s taxi market does face genuine difficulties, particularly around availability and reliability. But reducing the issue primarily to regulatory barriers risks overlooking why those regulations exist in the first place: licensing standards, insurance requirements and accessibility obligations among them. Taxis form part of the country’s public transport framework, not merely a sector awaiting disruption.

The experience of other cities offers a more mixed picture than advocates often suggest. Increased congestion, pressure on driver earnings, and the weakening of traditional taxi networks have become recurring themes where ride-hailing platforms have expanded rapidly.

Competition policy should not amount to accepting any new entrant without examining the broader consequences. Reform is clearly needed, but it should prioritise long-term stability, passenger safety and fairness across the sector, rather than focusing narrowly on supply expansion or platform convenience.

Consumers deserve better transport options, but they also deserve a clear understanding of the trade-offs involved. Such a one-sided opinion piece from someone involved in consumer protection is worrying. – Yours, etc,

OMAR SARHAN,

Dublin 16.

Sir, – Reports that the Consumer Protection Commission is in favour of allowing private drivers provide taxi services to the public is indeed concerning.

The study undertaken by the commission based on a survey of 1,000 respondents is hardly representative of national opinion regarding the taxi industry. Also, given the fact that the survey was undertaken in December, the busiest time of the year for the industry, the results are hardly surprising.

Commentary suggesting that the regulated industry is failing does not stand up. Driver numbers are increasing and are expected to rise further as the recent changes to the knowledge test take hold.

What needs to be examined by the National Transport Authority are the high rates of commission charged by the various online taxi providers to drivers, in some cases more than 20 per cent of the taxi fare.

A properly regulated taxi industry is best for the customer and the driver, and will ensure that a race to the bottom does not occur, which is in nobody’s interest. – Yours, etc,

CONOR HOGARTY,

Blackrock,

Co Dublin.

Sir, – Aside from the issue of the availability of taxi services, the Competition and Consumer Protection Commission might usefully comment on issues pertinent to the prices charged to the consumers it is supposed to be protecting.

The fare charged by owners of electric taxis is no different from that charged by taxis run on petrol or diesel despite the facts:

Grants of up to €25,000 have been made available towards the purchase of electric vehicles

The cost of running electric vehicles is significantly less than that of their diesel or petrol equivalents.

Given the view that running an electric vehicle is significantly more economical than running its petrol or diesel equivalent, might the CCPC seek to establish the rationale by which taxi charges have not been reduced rather than increased? – Yours, etc,

BILLY HANNIGAN,

Limekiln,

Dublin 12.