13/06/2026
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The Taxi Industry Is Reaching a Tipping Point
A strong piece by Paul Nicolaou highlighting an issue that should be getting far more attention.
The loss of more than 600 taxis in NSW in just two years should be setting off alarm bells for governments right across Australia. Having spent decades in and around the industry, I have never seen so many good operators and experienced drivers questioning whether they have a future.
What we are seeing is not simply the result of technology or changing consumer habits. It is the consequence of a regulatory system that has stacked the odds against one part of the industry while giving the other a free pass.
Insurance costs of around $5,000 per taxi are outrageous, but they are only one part of the problem. Many operators are still carrying the legacy debt of purchasing taxi licences in good faith under government regulated systems. At the same time, an oversaturated market has left too many drivers chasing too little work.
The real tragedy is the impact on the people behind the wheel. Many drivers have no access to sick leave, annual leave or superannuation. We were told deregulation would deliver a better outcome for everyone. Instead, it has created a growing class of working poor and driven experienced operators out of the industry altogether.
What frustrates me most is that we have effectively handed a significant part of a vital Australian industry to a foreign multinational. Billions of dollars that once circulated through local communities are now flowing offshore. We were promised competition, yet in many respects we have simply replaced one monopoly with another.
When regional communities lose taxi services and wheelchair accessible vehicles become uneconomical to operate, it is not just an industry problem, it is a community problem. It affects older Australians, people with disabilities and those who rely on taxis as an essential service rather than a convenience.
The question governments need to answer is simple: what have we actually achieved, and at what cost?
Without sensible reform, more drivers will walk away, more taxis will disappear and the people who will suffer most are those who rely on these services every day.
