Cross Border Hire in the Taxi Industry: Can a balance be found?

The taxi and private hire industry is at a crossroads, grappling with the implications of cross border hire rules. While these regulations offer clear disadvantages, they also provide advantages for some dispute the significant challenges and controversies.

The essence of cross border hire rules allows taxi and private hire drivers to operate outside the jurisdiction for which they are licensed. This flexibility is designed to benefit passengers by increasing the availability of transport options and potentially reducing waiting times. Particularly in underserved or rural areas, the ability to draw on a wider pool of vehicles can ensure that more people have access to transport when they need it.

However, this freedom comes with its own set of risks. One of the primary concerns is the difficulty in maintaining consistent standards of safety and service across different jurisdictions. Licensing authorities have varying requirements for drivers, vehicles, and operations. This disparity can make it challenging to ensure passenger safety and can lead to confusion about the standards a driver or vehicle has met.

For private hire drivers, the ability to work across borders can open up new opportunities for income, allowing them to take jobs in areas with higher demand or less competition. This flexibility can be particularly advantageous during peak times or special events, enabling drivers to maximise their earnings.

Conversely, local taxi drivers may find themselves at a disadvantage. With an influx of external competition, they could face reduced demand and lower earnings. This situation can strain local industries, especially in areas where taxi services are a critical part of the transport infrastructure.

The controversy surrounding cross border hire rules largely stems from this imbalance. There is a fine line between enhancing service availability for passengers and undermining the viability of local taxi services. The challenge for the Government, regulators and the industry is to find a balance that safeguards the interests of passengers, local drivers, and the broader community.