Irregularities resulting from the new taxi platforms introduced to the market over the past few years are creating unfair competition for some companies and could also be dangerous to consumers, several sources within the taxi industry told The Malta Independent on Sunday.

There are two kinds of taxi services in Malta ­– white taxis and all other chauffeur-driven services – which are regulated differently. For instance, while white taxis are permitted to stay on the road when they are not carrying passengers, other service vehicles must return to a public service garage. A number of problems surround the latter type of service, this newspaper has been told.

According to several industry sources, many of these issues involve the growing number of companies which offer online platforms for drivers and mobile users to connect, but which are not considered transport operators. This, they say, has given rise to potentially illegal practices, as well as the questionable vetting of self-employed taxi drivers by such organisations and the resulting risks.

A traditional taxi company is able to assess the state of its drivers for signs of alcohol consumption or exhaustion when they sign in for work, the sources explain. This, however, is not possible when a driver signs in through a mobile phone application. Worse still, sources say there have been instances of third parties allowed to take over the wheel who are not registered on a platform and properly licensed as chauffeur drivers. “This person, who isn’t meant to be driving the vehicle in the first place, won’t have been screened at any stage,” they say.

In addition, taxi drivers (who are not drivers of white taxis) cannot be self-employed, the industry sources said, while adding that a number of drivers who operate with these online platforms are working as self-employed drivers.

They explained that there is no communication between the Inland Revenue department and Transport Malta in terms of this issue, and said a number of these taxi drivers are registering as self-employed when, by law, they cannot be.

Another problem, industry sources say, is that some drivers have taken to leasing vehicles and spaces from public service garage owners to be used as taxis through platform-based companies without links to that garage, even though this is prohibited, as confirmed by Transport Malta. The Motor Vehicle Regulations describe a motor vehicle for hire as vehicles used for the carriage of passengers “registered to be hired from a public service garage, and driven by the garage owner or by any person employed by him.” 

“All we are asking for is fair competition and a level playing field,” the sources explain. “Either change the law to bring those companies in line with it, or start enforcing current regulations.”

The Malta Independent on Sunday sent several question to Transport Malta, which was asked, among other things: to confirm whether any vehicles other than white taxis are required to operate through a public service garage; whether such vehicles must be driven by the owner or employees of such a garage; and whether a public service garage may lease vehicles or parking spaces for the purpose of providing a service through third-party platforms.

“All vehicles (other than white taxis) offering a taxi service, apart from being registered under a public service garage, must either be owners of the garage or must be employed by the garage in order to allow them to render the service. The public service garage is not allowed to lease out vehicles or vehicle space for people to render this service,” Transport Malta responded.

Transport Malta was also asked to explain how it enforces such regulations and whether any changes are being considered to allow self-employed taxi drivers to work with public service garages.

“Currently, Transport Malta is in discussions with various stakeholders as it is in the process of reviewing the Public Service Garage License legislation, and currently it is not considering a change in regulations to allow self-employed taxi drivers to work with public service garage companies. It is to be noted that Transport Malta enforcement officers patrol the roads and intervene if they encounter irregularities. It is Transport Malta’s objective to allow for a revision of the legislation that will further help curb abuses,” it said.

Transport Malta was also asked to confirm whether there is a limit on the number of white taxi licences that can be issued and whether white taxis are allowed on the road when not carrying passengers. “Currently white taxis licences are limited to 250 in Malta and 50 in Gozo. White taxis are allowed to stay on the road even when not on a fare,” Transport Malta said.

Transport Malta was also asked to confirm if companies operating such platforms owned (or were required to own) public service garages and, if so, whether this was sufficient to cater for the number of taxis operating through their platform.

“Every chauffeur driven vehicle is covered by a Public Service Garage Licence and thus every vehicle has its garage space. Drivers in possession of a driver’s permit tag can drive a chauffeur driven vehicle without having to own the Public Service Garage and they can also drive a vehicle with the logos of a particular service,” Transport Malta said. It did not specify, however, whether the garages in question belong to the platform companies.

Such irregularities, the industry sources conclude, have led both to the proliferation of platform-based companies and to higher insurance premiums.