Taxi regulations threaten entrepreneurship and innovation

Press release: ACT New Zealand
January 13, 2015. 5:00pm

“Smartphone-based taxi technology has provided greater choice for New Zealand consumers, but in some cases could prove illegal under current transport regulations,” said ACT Leader David Seymour today.

“Recent cases where drivers have been charged or issued with infringement notices suggest the current law may not be fit for purpose. It is not for me to comment on individual cases, but we must review the existing law to send a message that entrepreneurship is welcomed in New Zealand, and to foster innovation in taxi technology and maximise consumer choice.

“Taxi companies provide a vital service and are an important source of employment. Smartphone-based technology could benefit all of these companies, allowing them to explore new safety practices and pricing options, such as providing users with driver profiles and enabling automatic fare adjustment to increase taxi supply during busy periods.

“As ACT Leader, I have written to the Minister of Transport, asking him to confirm whether the Government has any plans to review the law to ensure smartphone-based taxi services are able to continue operating legally within a competitive transportation market.

“Intelligent regulation and a liberal approach to business innovation are essential to a healthy economy. Therefore, regulatory reform is a key ACT priority for the next three years.

“I look forward to hearing the Government’s plans for modernising New Zealand’s transport regulations.”

Mr Seymour has previously researched taxi regulation for Canada’s Manning Foundation and Frontier Centre, and has even written a paper named “Whither Taxi Regulation: Why GPS-enabled smartphones will send traditional taxi regulation the way of the dodo”.

ENDS

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