Swan Taxis cuts fares to absorb cost of buy-back levy

The biggest taxi provider in WA is dropping its base standard fare prices so customers will pay the same they do now when a 10 per cent levy on trips is brought in on April 1.

The change isn’t an early April Fools’ Day joke for Swan Taxis — with its pool of 1400 cars on the road and 3500 drivers —which has made the change due to a levy being imposed by the State Government for all on-demand transport operators as a way to fund a buyback of taxi plates.

Trips for vehicles which seat 12 people or less and start and finish in the Perth, Mandurah or Murray regions are effected by the levy.

Swan Taxis are getting rid of its standard $1.50 booking fee, ultra-peak surcharge and week-night and weekend tariffs as part of the its price list restructure.

Customers will pay the same per kilometre rate regardless of the time of day.

The changes by Swan Taxis set a precedent for the rest of the industry after fears the introduction of the levy would drive up prices for passengers.

The levy was brought in after the rise in on-demand services such as Uber and Shofer in Perth disrupted the market.