3News » Home
Full Story

Cut price taxi fare war in Wellington

1 comments | Post Comment email Email printer friendly Print    Text Size:
aA
aA
aA
Wellington taxis are having a fare war

Wellington taxis are having a fare war

video
Tue, 20 Jul 2010 6:44p.m.

By Charlotte Tonkin

A cut price fare war has broken out among Wellington's taxi drivers.

The skirmishing began over prime position rights at the city's airport terminal.

One of the companies that felt it unfairly lost out, has now begun undercutting its competitors.

It’s hard to find a Kiwi Cab at Wellington Airport amid the sea of blue and white Wellington Combined Taxis.

Kiwi Cabs says they have been squeezed out of the market and now the war is on fares.

“Currently we're struggling for work and the only way for us to survive is to appeal to the market and appeal to the customers and lower our fares,” says Logan Pithyou from Kiwi Cabs.

The company's lowered its flag fall from $3.50 to $2.50 and its per kilometre rate from $2.95 to $2.40, making them the cheapest taxis in Wellington City. The move will save travellers around $5 on a trip from the airport to the CBD.

But it's the airport market it's is trying to get out of.

Since the start of July Wellington Combined and Green Cabs have been the only taxis allowed to use the lane closest to the terminal.

Mr Pithyou says it's cost his drivers at least forty percent of their earnings.

“It’s had a devastating effect. A lot of drivers have signed up for the dole or moved to other companies,” he says.

Drivers have been getting more work since the price drop but for consumers price is only one factor in the fare fight.

“Definitely reputation is most important I mean being a female and going out at night. You need to know you're going to get home in one piece,” says taxi user Holly Sawyer.

“I don't usually do a comparison of price so I just go for the one I know,” says taxi user Rory Addison.

Wellington Combined says its pricing has always been competitive.

It has no plans to match kiwi cabs prices but welcomes any competition in the capital's ranks.

3 News

Become a fan of 3 News on Facebook and on Twitter.

Comments [1]

Ricardo
21 Jul 2010 7:40p.m.

What did the cabs who can use the airport have to pay the Airport Authority? Seems to me the Airport is effectively raising prices for travellers by shutting down competition on the airport rank.

Post a comment

Before commenting, please take the time to read our moderation guide here
Name:
Email: (Won't be published)
Comment:



3News Video 3News Audio