TAXI DRIVERS HAVE warned that the market in Ireland risks being “controlled by profit-driven algorithms” due to the rise of taxi apps.

This morning, the Joint Committee on Transport will meet to discuss issues facing the taxi industry.

Taxi drivers also tell the Committee that the app algorithms “increasingly reward longer hours and penalise job refusal”, which creates downward pressure on earnings and threatens the long-term viability of the profession.

Committee Cathaoirleach Michael Murphy it’s important for the committee to “recognise the strength and consistency of concerns raised by taxi representative organisations”.

“There is no doubt that this sector is facing significant challenges,” he added ahead of the meeting.

Murphy also noted that the “growth of the use and reliance on technology has changed and impacted the taxi sector” and pointed to the introduction of a fixed-fare system.

This move resulted in recent protests by taxi drivers who argue that it undermines the regulated fare structure set by the National Transport Authority (NTA).

In November, Uber introduced fixed prices in Ireland – more than 6,000 drivers in Ireland currently use the Uber app.

The company said the new model guarantees passengers a maximum fare upfront instead of the usual estimated range that can rise with traffic or route changes, reducing “meter anxiety” and seeing passengers paying the lower amount if the meter comes in under the fixed price.

But taxi drivers claim the model amounts to “predatory pricing” and leaves drivers earning less, particularly during traffic delays.

Drivers have also accused Uber of undermining the regulated taxi fare structure set by the NTA with its new fixed rate system. 

‘Go Slow’ protests were held by taxi drivers in November and December in protest of the move.

This morning, the National Private Hire and Taxi Association (NPHTA) will tell the Transport Committee that drivers initially welcomed the introduction of app-based booking technology, “albeit with caution”.

But despite this caution, the NPHTA said taxi drivers felt reassured by Ireland’s “strong regulatory framework” and the oversight role of the NTA.

The NPHTA will add that drivers initially found that they could work more efficiently on the apps and that the commission paid to the app companies was generally offset by improved access to work.

However, the NPHTA claims that this all changed when Uber introduced fixed fares and that this “marked a fundamental shift in control”.

The NPHTA said this means app companies are no longer “merely” booking platforms but are now “effectively setting fares, controlling work allocation, and influencing driver income”.

It added that this move undermines the regulated taxi meter, which was established by the NTA following extensive public consultation.

The NPHTA will add that the taxi meter is not “outdated” but is instead “fair, transparent, and trusted”.

It will today call for the Committee to provide “clear assurances” that the NTA will retain “full authority over fares, standards, and market oversight”.

It will also seek for the NTA to be “explicitly empowered to regulate app-based platforms”.

If this cannot be done, the NPHTA has proposed that the NTA develop a
“publicly regulated booking platform”.

The NPHTA meanwhile will claim that the choice before the Committee is a “regulated public-interest taxi service, or a market controlled by profit-driven algorithms”.