The Australian Competition and Consumer Commission said within the piece of writing order now that this ihail app would surely have a big affects competitors within the taxi sector that may influence…
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The “ihail” app is a proposed joint venture between payments provider Cabcharge and taxi operators Yellow Cabs, Silver Top Taxi Service, Black and White Cabs, and Suburban Taxis.
“The ACCC is concerned that the upfront priority dispatch payment could reduce access to taxis during peak periods for financially disadvantaged sections of the community”, Mr Sims said.
Although the taxi companies involved in ihail would retain their existing booking apps, the ACCC argued the new app would become dominant and could also reduce competition by impacting the commercial viability of third-party booking services such as goCatch and ingogo.
“They will reduce competition between taxi networks in supplying services using the ihail app, and the arrangements may tip the market towards ihail becoming the dominant booking app”, Sims said.
“The decision regarding ihail Pty Ltd will not impact Cabcharge’s own booking apps for its Australian taxi brands”, Mr Skelton concluded.
Last month, 40 Uber drivers were issued suspension notices in New South Wales, in a bid to crackdown on illegal ride-sharing services.
Cabcharge has pinned its hopes on iHail, developed by Minneapolis software firm Taxi Services Inc and in which Cabcharge has a 10 percent stake.
The company aims to launch and operate a new smartphone taxi booking app that if launched, would initially operate in major metropolitan and regional centres across Australia and a few cities overseas.
Cabcharge said in a statement that the draft ruling will not impact its plans for proprietary taxi apps.
The regulator said passengers will only be able to pay for fares booked with ihail through the app, meaning passengers will not be able to pay in the taxi, while Cabcharge would process all payments.
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.
“We’re calling on riders and drivers to make their voice heard, and ensure that the government knows that ridesharing is here to stay”, Uber said in July.
In a statement, an Uber spokesman said: “We welcome the ACCC’s decision to put consumers first and reject the taxi industry’s latest attempt to shut out competition”.
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 commission said it would seek submissions from interested parties before making a final decision in November or December.
