Last month, Danny O’Gorman, general manager at Freenow by Lyft Ireland presented the findings and recommendations from Freenow’s recent report, Supporting the Long-Term Growth of the Taxi Industry in Ireland, to Oireachtas members in a briefing at Leinster House. The report warned that safety concerns, rural mobility gaps, and unresolved VAT liabilities could undermine Ireland’s taxi industry at a time of peak festive demand.
Commenting on the report, Mr O’Gorman said: “Driver numbers are increasing every year and as we headed into Christmas we saw our highest ever level of supply. However, in order to ensure this growth continues, it is vital that taxi drivers are supported and the challenges they are facing are tackled. Our report sets out a number of straightforward recommendations which would protect drivers, improve passenger experience and support the industry’s future. If these issues aren’t addressed now, Ireland risks a shortage of taxis when people need them most.”
The report identifies key pressures affecting the industry and proposes concrete measures to secure its future.
Safety is identified as the most significant issue facing the taxi industry: 31 per cent of Freenow by Lyft drivers feel unsafe while working, with a third reporting they feel less safe than a year ago. Another 64 per cent report ending shifts early because of safety fears, reducing late-night taxi availability when demand is highest. This shortage impacts Ireland’s night-time economy, where reliable transport is essential for the hospitality and entertainment sectors to thrive.
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In contrast, passengers report positive experiences when taxis are available: 96 per cent feel safe when using taxis, with 73 per cent considering taxi apps such as Freenow to be the safest way to book a taxi.
In order to tackle the safety concerns that drivers are facing, Freenow recommends the establishment of a dedicated Garda helpline for taxi drivers to report incidents and receive rapid assistance, and the collection and publication of data on violence against taxi drivers to inform policy and improve safety.
Regarding safety, O’Gorman commented: “Taxis are a cornerstone of Ireland’s public transport network. As the only door-to-door option, they play a vital role in connecting people to work, healthcare, education and social activities. But the industry is under pressure. Driver safety concerns, supply bottlenecks at peak times, and a lack of late-night transport options are all affecting both drivers and passengers.
“Everyone should feel safe at work and taxi drivers are no exception. Increasing reports of verbal abuse and antisocial behaviour highlight the urgent need for a dedicated Garda helpline for taxi drivers to report incidents and receive help quickly.”
Changes such as staggered closing times for late night venues, improved public transport provision, as well as the above steps to support driver safety, would help to reduce bottlenecks and make the system work better for everyone.
The report highlights other areas of concern including obstacles drivers are facing to working in rural areas. While taxi supply is growing strongly at a national level, drivers in rural areas are struggling to maintain viable services for their communities. To genuinely improve rural transport, Freenow recommends solutions targeted at specific barriers faced by drivers and passengers, in particular through changes to the Local Area Hackney scheme.
Unresolved VAT issues that risk blocking or delaying licence renewals for thousands of drivers is another issue addressed within the report.
Hidden VAT liabilities, stemming from the use of the reverse-charge mechanism by other taxi app companies, are a significant threat to Ireland’s taxi drivers. Thousands of drivers are unknowingly non-compliant, jeopardising their ability to receive a Tax Clearance Certificate, necessary for the renewal of the SPSV licence. While the transport of passengers by taxi is exempt from VAT, this exemption does not apply when the Reverse Charge mechanism is used. This occurs when an intermediary, such as a taxi platform, invoices from outside the State of Ireland, obliging the driver to register and self-account for VAT on the commission charged to the platform/operator.
Freenow by Lyft is registered for VAT in Ireland, and provides services from Ireland. This local approach ensures that driver partners are not affected by reverse-charge VAT. As a result, Freenow’s non-VAT-registered driver partners do not have to register for VAT or file VAT returns. However, many taxi drivers use multiple platforms and are not aware that they are required to pay VAT on journeys booked through operators who invoice from outside of Ireland. These unresolved VAT issues could lead to a sharp reduction in the licensed driver pool, straining service availability and damaging thousands of drivers’ incomes. To tackle this issue, Freenow recommends amending the Dispatch Operator Licence to require all taxi platforms operating in Ireland to register and invoice from within the State.
The report also discusses the need to continue to grow and support accessible and electric taxi fleets.
Despite the growth in Ireland’s accessible taxi fleet, many wheelchair users still face difficulties securing a suitable taxi. This is a serious problem as taxis are the only door-to-door public transport option and therefore are often relied upon by wheelchair users to get them where they need to be. There is significant and growing interest among drivers in providing wheelchair-accessible services, but more support is needed. Increasing funding for the Wheelchair Accessible Vehicle (WAV) Grant Scheme would grow the accessible taxi fleet and improve experiences for all passengers.
Drivers also need more support in the transition to electric vehicles (EVs). In a recent Freenow by Lyft survey, 37 per cent of drivers cited the high cost of electric vehicles as the main barrier to switching to an EV, while 33 per cent pointed to a lack of access to fast EV charging points. In order to ensure drivers can switch to EVs and support the green transition, there is a need for greater investment in the eSPSV Grant Scheme, fast-charging infrastructure, and support for electric WAVs.
