The Oireachtas Committee on Transport has heard that Uber’s new fixed fare system has "changed the balance" for taxi drivers and passengers alike.
The Committee heard the FreeNow taxi app has also raised its commission to 25%, something the National Private Hire and Taxi Association called a "fundamental shift in control".
"App companies are no longer acting merely as booking platforms; they are now effectively setting fares, controlling work allocation, and influencing driver income," spokesperson, Jim Waldron said.
He called for the National Transport Authority (NTA) to be "explicitly empowered" to regulate taxi apps or if this is not possible, "develop a publicly regulated booking system".
In November, hundreds of taxi drivers protested Uber’s fix fare system in Dublin’s city centre.
The system allows Uber passengers to pay an upfront price calculated by the app’s own algorithm as an alternative to the NTA’s regulated meter fare.
The upfront price cannot go above the taxi’s maximum fare price, but it can go below it.
In statement at the time, Uber said its fixed price offer does not breach fare regulations outlined in the Taxi Regulation Act 2013 - noting that riders are "much more likely to book a trip" if they know what the fare is going to be, creating "more earning opportunities" for drivers.
The company added that drivers can see their estimated earnings before accepting a job - as well as various algorithmic factors that influence it.
The taxi meter is 'fair, transparent and trusted'
In his opening statement, Mr Waldron said the taxi meter is now being undermined.
He said it was a system "established by the NTA following extensive public consultation, designed to balance affordability for passengers with a financially sustainable career for drivers".
He called the taxi meter "fair, transparent, and trusted", adding that the system works in the public interest.
Mr Waldron criticised a market driven by "profit-driven algorithm" that threatens the "long-term vitality of the profession".
He said this is also a passenger issue as app companies "have no obligation to ensure rural coverage".
He called for clear assurances from the Committee that "driver livelihoods will be protected and that the NTA will retain full authority over fares, standards and market oversight".
The Committee's Chair Michael Murphy acknowledged that the taxi sector is facing "significant challenges".
"It is important to recognise the strength and consistency of concerns raised by taxi representative organisations across the country," he said.
'Predatory dispatch platforms'
President of the Irish Taxi Drivers’ Federation called for the taxi regulations to be updated to stop the "fast-moving app companies destroying the taxi industry in Ireland".
Alan Cooley said, "predatory dispatch platforms" have "ruined the lives of countless taxi drivers".
"We know from other countries that Uber and other app companies, that their business model is to dismantle the taxi industry in each and every country they gain entry into," he said.
He said Ireland’s "very successful regulated taxi industry" risks becoming a "part-time industry which is not controlled by the NTA".
Mr Cooley said the 2013 Taxi Regulation Act "has no legislation to protect the taxi industry because in 2013 the tech companies did not exist".
'Reduced rural availability'
The Committee also heard that rural taxi services have been affected.
The Chair of the Tralee Taxi Association said: "Rural taxi services operate on structure, not algorithms: phone bookings, regular customers, and local rosters that guarantee early-morning, late-night, and emergency cover."
"That structure is now being undermined," said Terry Boyle.
He said app platforms have no obligation to provide coverage, resulting in "reduced rural availability" and "drivers leaving rural counties to work in cities".
Tiománaí Tacsaí na hÉireann’s chairperson said technology companies have "gained a monopoly" in the industry.
David McGuinness called for legislation to be updated to "outlaw these practices and protect drivers' incomes and customers alike".
"It is our opinion on the evidence from other jurisdictions that this is only the beginning of the moves by these companies to force a totally unregulated taxi market into Ireland," said Mr McGuinness.
Uber and FreeNow have been invited to give their own statements to a future sitting of the Transport Committee.
