Recently, the MOTC announced that drivers in its diversified taxi program wouldn't need to install a meter, but could charge fares determined by an app, similar to how it works for Uber. However, some taxi drivers believe this will result in a cutthroat price competition and often lead to consumer disputes.
There is going to be a major reform in the taxi fare as the Ministry of Transportation and Communications forecasts an amendment to the "diversified taxi fare rates". In the future, passengers would be informed of the taxi fare in advance through an APP and that diversified taxi would not need to install a meter. The billing structure would be decided by the APP operators. However, the taxi drivers worry there's a lack of standard in the APP-billing system and would lead to a price-cutting competition, thus resulting in consumer disputes.
There is no 3rd party verification group in place to check the APP's accuracy and billing system once consumer disputes occur in the future. The amendment will be made in 14 days. This adjustment is done for Uber.
Currently, the taxi fare is calculated based on the approved billing rate set by the Public Transportation Office, and diversified taxi allows passengers to be informed of the fare when they call a cab. However, the taxi drivers questions the new amendment is actually helping the legalization of Uber and allowing Uber to join the "diversified taxi" by removing the taximeter and using an APP to forecast the fare. The Ministry of Transportation stresses that diversified taxi can choose either using the current taximeter or use an APP to forecast the fare on top of a taximeter.
The rates of diversified taxi will be set by fellow operators according to the approved rates approved by the MOTC. We will verify the fares and check if they are within the approved transportation fare approved by the MOTC.
The Ministry of Transportation and Communications points out, the amendment will be implemented in 14 days. The Ministry will also develop a verification mechanism for the APP. The diversified taxi operators will have to save all transportation data within 2 years, including taxi fare and its running tracks. The fares can't be lower than what the MOTC has approved. If a price-cutting competition is found, the operator will be fined up to NT$90,000.