The statement made no direct mention of Uber but said iHail would achieve a potentially dominant position due to the larger fleet of taxis its ownership structure delivers.
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The decision is a major blow to the industry’s fight against Uber and other ride-sharing services. iHail would have allowed passengers to use the same app to find the nearest taxi wherever they are instead of needing to navigate various apps servicing different locations and brands.
THE taxi industry says it is “flabbergasted” after the competition watchdog blocked a booking app meant to take on the increasingly powerful Uber.
Sims also said the ACCC is concerned that this requirement will shut out opportunities for Cabcharge’s competitors to provide non-cash payment processing services to ihail customers.
The ACCC admits that the app would provide a more convenient and easier way to book a taxi for users, but says the impact on competition is more important.
The commission’s concerns stem from the proportion of the market that will be captured by the app. The regulator estimates iHail’s initial shareholders-including Yellow Cabs, Silver Top Taxi Service, Black and White Cabs and Suburban Taxis, as well as Cabcharge, itself Australia’s biggest owner of taxi brands-represent more than half of all taxis in the country, and a larger share in the metropolitan areas where the app would operate.
However, with a leopard being the animal logo of the Cabcharge company at its website, one can only wonder if leopard can ever truly change its spots.
“The ACCC has sided on the side of Uber against Australian companies and that’s not it’s role”, he told AAP on Monday.
Cabcharge has pinned its hopes on iHail, developed by Minneapolis software firm Taxi Services Inc and in which Cabcharge has a 10 percent stake.
At its annual profits release presentation in August, Cabcharge chief executive Andrew Skelton said that the company couldn’t wait much longer to get the app up and running. At the time, the NSW Roads and Maritime Services (RMS) said taxi and hire auto services must have authorised and accredited operators, as well as a licensed and insured vehicle.
“It does nothing to create a fair and level playing field for taxi services in the respect that Uber operates”, he said.
Mr Davies said while ihail wouldn’t have been a “silver bullet”, it would fill a gap in the marketplace, namely that consumers don’t like having to download separate apps for each taxi company when they travel.
Laurent Kennel, CEO of eCab, said: “Until now, around the globe, technology has outpaced the taxi industry and regulatory bodies, all at the customer’s expense”.
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The ACCC is asking for submissions on its draft determination before making a final decision later this year.
