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Cabcharge has responded to the Australian Competition and Consumer Commission’s (ACCC) draft determination proposing to block the ihail taxi booking app, stating it will not impact its own plans for its proprietary taxi apps.The ACCC advised of its draft determination today, with ACCC chairman Rod Sims stating that the ACCC considered that the proposed arrangements would likely “produce significant public detriments”.
In a statement, Cabcharge has stressed that ihail is not a subsidiary, stating that it is a company in which it holds an approximately 10 per cent stake, with other organisations that have interests in ihail including Yellow Cabs, Silver Top Taxi Service, Black and White Cabs and Suburban Taxis, with there additionally being interests from the US.
“Cabcharge has a small investment in ihail Pty Ltd and was pleased to win the opportunity to provide the payment gateway,” Cabcharge managing director and chief executive officer Andrew Skelton commented.
“The marketplace currently operates with a number of similar apps, including some big global players, which presents significant competition in the local market. The convenience of the ihail app for consumers is the ability to use the same app wherever they are, without needing to navigate different apps servicing various brands.”
Skelton stated that “having mandatory in-app payment is nothing new”, with Cabcharge providing the payment gateway for ihail “no different to this function being provided by a bank”.
“A number of apps already operate in this way, offering a streamlined experience for the passenger,” he commented.
“The decision regarding ihail Pty Ltd will not impact Cabcharge’s own booking apps for its Australian taxi brands.”
