Though rideshare apps like Uber have made private transport more convenient and easily accessible, some Australian taxi drivers are looking to take advantage of customers who want to go to their destination quickly.
After watching a comedy show in Melbourne, I was one of those unlucky patrons who was caught in the rush hour home after a night out.
While I typically have no trouble booking an Uber, my night coincided with a famous pop star’s concert in the next arena, meaning the battle to quickly book a ride and beat traffic escalated.
In the midst of having three Ubers cancel my booking, I headed down the street and started talking to cab drivers who might offer a more convenient option, and what they said shocked me.
For reference, I live approximately 30 minutes from the arena and even in peak hour, the maximum Uber fare I received was $60. So, imagine my surprise when some taxi drivers quoted me $100–$300 just to get home.
When I asked if they’ll turn on the meter if I jumped in, the driver said, “No, it’s my cab. If you don’t like my prices, you can move on”. I wasn’t alone in experiencing this.
As I walked down the street in the hopes of finding a less busy area to book my Uber, I overheard a range of people expressing their dissatisfaction at the seemingly absurd prices taxi drivers are charging.
I overheard one man say “mate you’re dreaming” after a taxi driver quoted his group $50 just to get to an inner-city bar, approximately 5km down the road.
Which begs the question: do taxi drivers have the right not to use the meter? Here's what you need to know.
Do taxis have to use the meter?
Yes, in all Australian states and territories, taxi drivers must use the meter for any hailed or unbooked services.
While cab operators are legally allowed to offer discounted fares, the meter must be turned on to determine the maximum fare a driver can charge a passenger.
A spokesperson for 13 Cabs told Drive it has a “strict zero-policy on drivers refusing to use meters” and any offending driver will be “immediately investigated and if found to have breached this requirement a second time, they are removed from our fleet permanently”.
Though unbooked non-metered trips are illegal, Stephen Armstrong, the President of the Victorian Taxi Association (VTA), said the influx of new drivers, coupled with the lack of enforcement officers, has led some rogue operators to charge premium prices for regular trips.
“This [non-meter trips] was never an issue prior to the government reforms in 2017,” Armstrong told Drive.
Since then, Armstrong said, “The number of commercial passenger vehicles in Victoria has increased from approximately 10,000 to 70,000 vehicles”.
“As the market has obviously not kept pace with the number of licensed vehicles on the road, a minority of drivers are trying to make ends meet, hence [why some] are charging fares over and above the regulated rank and hail fares.
“With such a limited number of inspectors, they [offending taxi operators] are doing this as they know the chances of getting caught are almost zero.
“You only have to look at the constant flow of these price-gouging complaints versus how many prosecutions are done to see that in the grand scheme of things, not many get caught,” he said.
The VTA President said before 2017, there were “approximately 40 compliance officers” for the 10,000 licensed taxi drivers in the state.
In 2025, “we currently have 15 compliance officers that are trying to look after 70,000 registered commercial passenger vehicles, as well as adding buses and maritime to their responsibilities... what hope do they have?”.
A 13 Cabs spokesperson also pointed to current taxi regulations as a key reason why some drivers are bypassing rules without fear of consequences.
“13 Cabs has repeatedly called for regulators around the country to do more and outlaw payment terminals in taxis that are not directly connected to a taxi meter,” they told Drive.
“The use of these terminals serves no purpose other than allowing rogue drivers to bypass the taxi meter and charge more than they are permitted to.”
The taxi giant clarified that one of the industry's “biggest challenges is that drivers dismissed from our network can continue to operate independently”.
“This loophole allows poor performers to continue driving without oversight, which damages the reputation of the industry as a whole.
“The system in Victoria is currently rewarding the worst performers. We enforce high standards, and when drivers fall short, we act. But too often, these same drivers go solo and continue the same behaviour, undermining public trust and confidence,” a 13 Cabs spokesperson told Drive.
Though the issue persists in metropolitan and urban Victoria, if left unchecked, Armstrong predicts offending taxi operators will eventually spread to regional areas.
“This is currently a big issue in Melbourne and urban Victorian areas, but it’s only a matter of time before these rogue operators drift out to the country,” the VTA President told Drive.
“Touting at airports and major nightlife districts across Victoria has not dissipated, even with the reintroduction of significant penalties,” he added.
Despite recently introduced laws that crack down on price-gouging in the taxi industry, a spokesperson for Safe Transport Victoria said the state government is looking to introduce new legislation.
“Price-gouging has no place in Victoria – unbooked services must use the meter and penalties apply for those who do the wrong thing.
“Later this year, the Victorian Government will introduce new reforms that will make it easier for passengers to report driver misconduct while delivering harsher penalties to drivers who do the wrong thing,” a Safe Transport Victoria spokesperson told Drive.
What do you do if a taxi driver refuses to put the meter on?
If a taxi operator refuses to put the meter on, you are legally allowed to say no and choose a different driver.
Armstrong from the Victorian Taxi Association advised, “Should a driver refuse to use the meter, take his registration number or driver ID and lodge a complaint via the Safe Transport Victoria website. The customer has the right to choose any taxi on the rank, so move to the next taxi.”
Similarly, a 13 Cabs spokesperson said passengers have the right to refuse a ride, and customers who have experienced any misconduct are urged to contact the taxi giant's support line.
“We take this behaviour seriously, and unlike rogue operators, we have systems in place to do something about it,” they told Drive.
Ethan Cardinal graduated with a Journalism degree in 2020 from La Trobe University and has been working in the fashion industry as a freelance writer prior to joining Drive in 2023. Ethan greatly enjoys investigating and reporting on the cross sections between automotive, lifestyle and culture. Ethan relishes the opportunity to explore how deep cars are intertwined within different industries and how they could affect both casual readers and car enthusiasts.
