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Home / Northern Advocate

Rogue out-of-town taxi operators ripping off Northlanders

Imran Ali
By Imran Ali
Multimedia Journalist·Northern Advocate·
21 Aug, 2020 05:00 PM5 mins to read

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Kororia Parata, left, and Abid Latif of A1 Cabs are among those annoyed by out-of-town cowboy taxi operators ripping off Northlanders.
Photo / Michael Cunningham
Kororia Parata, left, and Abid Latif of A1 Cabs are among those annoyed by out-of-town cowboy taxi operators ripping off Northlanders. Photo / Michael Cunningham

Kororia Parata, left, and Abid Latif of A1 Cabs are among those annoyed by out-of-town cowboy taxi operators ripping off Northlanders. Photo / Michael Cunningham

Cowboy taxi operators are overcharging Northland residents, including a Whangārei woman who was stung $150 for a less than 8km ride that should cost no more than $25.

Out-of-town independent drivers are targeting those attending major events across the North Island after a law change in 2017 that removed the requirement for taxi operators to use fare meters, as well as a restriction on where a P endorsement holder may work, irrespective of the area they live in.

Legitimate taxi operators and their lobbyist, the New Zealand Taxi Federation, said the behaviour of out-of-town taxi drivers was "really bad" and that they were neither accountable to anyone nor cared about the law.

But Transport Minister Phil Twyford doesn't characterise it as a major issue, although he has received correspondence on the issue from time to time.

He isn't considering reverting to the old rules where drivers needed to be part of an approved taxi organisation but is open to looking at the regulation of the small passenger service sector.

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Kororia Parata came out of a bar on Bank St, Whangārei, in the early hours of August 9 and hailed a cab on Rathbone St to go home on Whareora Rd.

READ MORE:
• Kaitaia's taxi service badly missed by elderly

• The end of an era for Kaitaia Taxis

She paid by eftpos and it wasn't until she checked her bank statement later that day that she realised she had paid $150.

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"I wouldn't have kicked up a fuss if the fare was an extra $20 but $150 is a lot of money. It's horrible. I could go back and forth from my home five times in that fare.

"I want to be reimbursed. I don't trust the taxi companies anymore because I feel like being deliberately ripped off or taken advantage of. Whangārei people should be aware of such drivers," she said.

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Her bank statement stated the amount was paid into the account of Auckland Taxi Service but company director Manmohan Singh Dua denied one of his drivers was responsible.

Parata contacted A1 Cabs and her complaint was investigated by its administration officer in Whangārei, Abid Latif, and it was not one of their drivers.

"High demand doesn't mean drivers should overcharge people. We have one tariff any time of the day and night, our job-dispatching system is on the dashboard and the meter is visible to our customers," he said.

Latif said there was anecdotal evidence cowboy operators overcharged Northlanders during Waitangi Day and the Northland Field Days in Dargaville early this year.

Jacob Patel, chairman of Auckland Coop Taxi which owns A1 Cabs, said a lack of jobs in the City of Sails has prompted operators to look for opportunities across major towns around the North Island.

"Auckland Airport is closed because of coronavirus, taxi ranks in major hotels are leased by our company, so they venture out because they don't need to display a taxi sign, fare schedule or taxi meter.

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"A lot of them sleep in their cars when they work out of town and all they do is two or three jobs and that's enough for them. They don't have to worry about their reputation," Patel said.

Northlanders are being advised to make sure they and taxi drivers agree on the basis of the fare in advance of the trip.
Photo / Michael Cunningham
Northlanders are being advised to make sure they and taxi drivers agree on the basis of the fare in advance of the trip. Photo / Michael Cunningham

New Zealand Taxi Federation executive director John Hart said the law change has allowed individuals with a P endorsement to operate as taxis without being accountable to anyone.

"It's third-world stuff. They are absolute cowboys and what they are getting away with is absolutely disgraceful. If they are prepared to rip people off, what else are they prepared to do?"

Hart said trouble arose when people came out of major events or from pubs and all they wanted to do was to go home rather than keep a tab on the taxi service.

The Government is urging anyone who has been ripped off to lodge a complaint with regulator the New Zealand Transport Agency (NZTA), which could revoke the P endorsement if complaints were upheld.

"It's unacceptable and unethical for someone to be charged $150 for an 8km ride. I strongly urge everyone taking taxis to make sure the basis of the fare has been agreed in advance of the trip," Twyford said.

"I have received correspondence on this from time to time, however I wouldn't characterise it as a major issue. I'm not considering reverting to the old rules. However, I am open to looking at the regulation of the small passenger service sector."

The minister said the new Operator Licensing Rule which took effect in October 2017 and removed the requirement for taxi operators to use fare meters was more flexible and reduced compliance costs.

"Officials advise me that under the new rule a driver is legally required to have agreed the basis of a fare with a passenger in advance of the trip. This could be either by meter calculation, negotiation or via an app."

Twyford said there were also existing protection for users of taxi services in the Consumer Guarantees Act 1993, the Fair Trading Act 1986 and contract law.

NZTA confirmed it has received no complaints of overcharging by taxi drivers in Whangārei in the last two years but has encouraged passengers to agree on the scale or basis for the fare prior to the start of the trip.

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