Pricing is "just one element of a much bigger picture" when it comes to challenges facing the taxi sector, the head of Uber Ireland is expected to tell an Oireachtas committee.
Kieran Harte will appear before politicians at the Oireachtas Committee on Transport later this morning where he is expected to take questions on Uber's fixed fare system.
Last November, hundreds of taxi drivers protested against the system, which 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.
Mr Harte will tell politicians that the "core issue" facing the taxi industry is supply and will call for a national taxi strategy to be introduced.
He will say: "While recent public debate has understandably focused on pricing, I would respectfully suggest that this is just one element of a much bigger picture.
"The core issue facing the taxi industry, and those who rely on it, is supply - and supply is shaped by policy choices.
"The sector has evolved significantly over the past decade, but policy has remained largely unchanged.
"A coherent, long-term strategy would allow government, regulators, drivers, passengers and industry to align around clear objectives: growing supply, improving accessibility, supporting sustainable earnings, and ensuring services are available where and when people need them most.
"Pricing will, of course, continue to be part of the discussion, and I am happy to address questions on that. But we must address the most important issue: a taxi system that is large enough, reliable enough, and sustainable enough to meet Ireland’s needs."
In his opening statement to the committee General Manager of Freenow by Lyft Danny O’Gorman is expected to criticise Uber over its use of a VAT reverse charge model.
The reverse charge mechanism shifts the VAT obligation from the platform provider to the taxi driver, meaning they are obliged to account for any VAT due.
Mr O'Gorman will tell the committee that thousands of taxi drivers are unaware of this "hidden" VAT liability, leaving them to be unknowingly non-compliant.
He will say that as a result, taxi drivers are jeopardising their ability to receive a Tax Clearance Certificate, needed for the renewal of their Small Public Service Vehicle licence, which could lead to a sharp reduction in the licensed driver pool and strain service availability.
Mr O'Gorman will say: "While journeys with Freenow don’t impose any VAT liability on drivers, many drivers use multiple platforms and are unaware of this liability with Uber.
"There is no minimum threshold for VAT liability on this - even a single journey triggers VAT registration and ongoing VAT obligations.
"Over time, these liabilities, of course, accumulate.
"Taxi apps operating under the reverse-charge model have been placing the burden of VAT on taxi drivers without their knowledge, and we believe it is a completely unacceptable practice."
Mr O’Gorman will call for Ireland to follow Poland's example and eliminate the reverse charge model by introducing a requirement for platforms to register domestically and invoice drivers locally.
