Lou Cover’s transport business, Hills Maxi Cabs, is in part a consequence of Perth’s regulated taxi industry.
Lou Cover’s transport business, Hills Maxi Cabs, is in part a consequence of Perth’s regulated taxi industry.
Instead of taxi plates, Mr Cover’s business operates under a tourist charter licence, which is similar to the small charter vehicle licence that presently allows 511 limousines, people-movers and luxury charters to operate in WA.
The SCV licence is subject to government regulations that act to protect the taxi market, through set cost structures and operational restrictions.
Under an SCV licence, vehicles must be pre-booked and cannot be hailed or participate in a taxi rank.
Vehicles are also subject to a minimum charge per trip, ranging from $60 to $85 per hour, depending on the size of the vehicle.
Mr Cover said the SCV and TC licences had provided an important alternative to the taxi plate market, being unlimited in supply and cheaper than taxi plate rental.
“Taxi plates are available, but they’re such a large burden and expense, so I looked for an alternative,” he said.
And business has definitely increased since the mining boom began.
“We’ve never advertised because we’d be outstripped by need,” Mr Cover told WA Business News.
Hills Maxi Cabs employs 10 drivers, although more are needed, especially on weekends, Mr Cover said.
Demand within the market has meant various SCV operators are marketing themselves as an alternative to taxis, and are being used for pre-booked work.
Mr Cover believes there is a niche in the market for prompt and efficient service, where conventional taxis cannot guarantee advance bookings.
“Our number one issue is reliability. We’ve designed and built the business to provide a service people ask for,” he said.
Black & White Taxis general manager Kevin Wigg acknowledged that SCVs provide an alternative to taxis, which cannot be booked, only requested.
“If a customer wants a guaranteed service, then there is the small charter vehicle service available, where they guarantee bookings at a premium price,” he said.
Other operators of SCV licences told WA Business News that customers were increasingly using their services for airport transfers because of the guarantee of timely service.
One operator said he was considering downsizing his fleet of large charter vehicles to maxi taxi size because of strong demand in the market.
