Ireland should embrace Uber and other ride-hailing apps to increase options, says watchdog

DCM Editorial Summary: This story has been independently rewritten and summarised for DCM readers to highlight key developments relevant to the region. Original reporting by Irish Times, click this post to read the original article.

Private drivers should be allowed to provide taxi services using their own cars through platforms such as Uber to combat shortages in the industry, the consumer watchdog has said.

New research from the Competition and Consumer Protection Commission (CCPC) has found a supply shortage in the taxi sector, as four in 10 people who tried to get a taxi in December reported difficulties in doing so.

Companies such as Uber do currently operate in Dublin, but regulations mean they can only act as a booking agent for licensed taxi drivers, rather than work as a ride-hailing service.

With a “significant share” of taxi users wanting the choice of ride-hailing (49 per cent), the CCPC has called for the removal of regulatory barriers to facilitate “entry of these services”.

Ride-hailing platforms, including Uber and Bolt, connect private drivers to passengers via apps.

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“This would mean allowing these private drivers to provide services using their own cars, subject to appropriate regulatory safeguards,” the CCPC said on Thursday.

According to the research, 57 per cent of those who expressed an opinion believe there are not enough taxis available in their area. However, there are stark differences across geographical locations.

While 56 per cent of those living in Dublin believed there are enough taxis in their area, only 28 per cent of those outside of Dublin agreed. That drops to 21 per cent for those living in Connacht or Ulster.

Participants were asked whether they would like the choice of accessing ride-hailing services, subject to regulatory requirements.

While 49 per cent of taxi users surveyed would like the option of ride-hailing services, that figure rose to 57 per cent for those who believed there were not enough taxis in their area.

When asked whether they would prefer a fixed fare or a metered fare, 60 per cent said they would support a fixed fare option.

The research also found that 53 per cent of respondents tried to get a taxi in December. Of those, two in five experienced problems, while 27 per cent said they had to stop looking as no taxis were available.

The research comes in advance of the National Transport Authority’s (NTA’s) regulatory assessment of the licensing of dispatch operators, which is due to begin later this year.

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CCPC chairman Brian McHugh said: “Regulatory barriers in the taxi market have failed to facilitate innovations that have flourished in other countries, and consumers are suffering as a result.

“Our research shows a clear preference for more choice among consumers who are not getting the service they need.”

McHugh said it was not a case of abandoning oversight, and that new entrants should be regulated to maintain safety and standards, but that consumers and businesses deserved an “innovative, functioning taxi sector” that provides choice.

“Consumers shouldn’t be faced with long waits or the possibility of staying home due to a lack of taxi availability.”

McHugh said the CCPC was calling on the Government to remove “key regulatory barriers” in the taxi market so that it can be more responsive to consumer needs and align better with “how transport systems are evolving all over the world”.

“The goal is to achieve a balance that protects consumers and ensures access, while also allowing competition and innovation to improve the market,” he said.

“We look forward to engaging with the NTA in their consultation process and to exploring all solutions that might increase capacity and choice.”

The research was conducted by the CCPC in collaboration with Ipsos B&A to gather information on attitudes toward regulatory structures, service availability and potential reforms in taxi service operations in Ireland.

Fieldwork was conducted between January 22nd and February 5th and based on a nationally representative sample of 1,023 consumers in Ireland aged 16 and above.