Passengers are advised to look for a reputable taxi company before booking a ride to avoid being overcharged. Photo: 123rf
Unsuspecting passengers are being caught out by rogue car or cab companies and it is costing them hundreds of dollars to go just a few kilometres up the road.
One woman was charged nearly $800 for a 19km trip from the Auckland suburb of Ponsonby to West Harbour.
Woman charged nearly $800 for 19km taxi trip
The Small Passenger Service Association (SPSA) is an industry body for taxis, ride shares and shuttles and its spokesperson Warren Quirke told Checkpoint $800 for 19km was at the top end of the complaints it had received.
"[Complaints] are normally under the $200 mark but [travelling] anywhere between ...10km and 25km [costing] up to $200 is not uncommon."
It was disappointing that these drivers were able sometimes to charge that legally, he said.
"If the fare is a negotiated price for the trip taking place, then it's actually legal. However, if they're not getting agreement with the passenger prior to the trip taking place and then demanding that afterwards, that is illegal and that should not be happening."
For drivers who did not advertise their fares, there should be a verbal agreement between the driver and the passenger about the likely cost of the journey.
The basis of the likely fare between point A and point B should always be discussed, he said.
"The driver should say, 'That's roughly about 6km, there's no tolls, there's no airport charges so it'll be [a certain] price', and that fare will at that stage be set."
There were three types of operators, including traditional taxi companies which generally used meters and had their fares displayed, so passengers knew exactly how much they were paying per kilometre.
Then there were ride shares, such as Uber, where the fare price was agreed when the person accepted the ride via the app.
The third group were independent taxi operators, where drivers were not affiliated to a taxi company and did not have a manager, he said.
"They basically just work off the streets, at taxi stands, at large events, at concerts, that type of thing."
Some of these independent operators used meters, he said.
"When this first started happening they weren't using meters and they weren't negotiating so ... back a couple of years ago they were having arguments."
Now, they had meters, but independent operators could easily have multiple tariff rates - for example, charging $3.50 per km as a base rate, up to $25 per km, he said.
"When they're doing this sort of thing it actually looks a lot more legit when you get to the end of the trip and it's there on a screen and that passenger feels obligated to pay it because it looks legit."
Asked who passengers could complain to if they thought they were being charged an exorbitant amount for a trip, Quirke said there was really nobody to go to.
"NZTA are the regulators of the small passenger service industry, however they will not get involved in issues regarding complaints.
"They will direct complainants to take it up with the taxi company manager. Now of course when you have an independent operator that driver is the manager and they are untraceable - they're very, very difficult to track down.
"The second place they tell you to go is to the Disputes Tribunal. Now, if you can't track down the person there's no way you'll be able to bring them before the tribunal."
Unfortunately, it was probably too late to do anything once you were inside the car if you saw the meter charge climbing ridiculously high, he said.
"To avoid that, look for reputable companies - all SPSA member companies are bound by a code of practice," he said.
The best option was to avoid taking these types of cabs in the first place, but if people did need to take one, they should make sure to negotiate the fare before leaving, he said.
People were being ripped off for exorbitant prices all around the country - although Queenstown was probably the worst place in New Zealand for it, he said.
"What you have down there is .. people coming in as tourists who get taken advantage of. It's particularly bad in Queenstown. Unfortunately you get international tourists and they get the full Kiwi experience of getting ripped off by these drivers."