What is On-demand transport?

On-demand transport is the transport of passengers for hire or reward where the passenger or hirer determines the locations for the beginning and end of the journey, as well as the time of travel.

  What is on-demand transport?

On-demand transport includes a taxi or a charter vehicle which provides a passenger with flexibility around the route they take and the time they travel.

This includes:

  • Taxis.
  • App-based booking service providers.
  • Limousines.
  • Charter buses or vehicles (for example, private airport transfers).
  • Vehicles chartered for bespoke tourism (for example, a private wine tour).
  • Contracted buses or vehicles (for example, by mining companies).
  • Party buses (for example, hens'/bucks' nights or pub crawls).
  • Hired buses (for example, school camps or excursions).

On-demand transport can be booked well in advance or for immediate departure.

The On-demand Transport business unit at the Department of Transport oversees the passenger transport industry to ensure public safety standards are met. The On-demand Transport business unit also oversees tourism passenger transport and regular passenger transport in Western Australia.

What does 'hire or reward' mean?

A person is providing a service for the transport of passengers by vehicle for hire or reward, or is driving a vehicle for transporting passengers for hire or reward, if:

  • The passengers have paid some form of consideration for the service, such as where a passenger pays for a taxi or charter service; and
  • The driver is doing so for reward, regardless of whether the passengers being transported have paid for the service (for example) this includes a paid driver of a free public transport shuttle-bus, or a person employed by a business as a professional driver, to drive customers or staff to required locations.

Hire or reward does not include:

  • If the person is driving the vehicle as part of the person's general employment,
  • Carrying passengers in that vehicle is an incidental part of the person's other employment duties;
  • If the passengers are transported under a vehicle pooling arrangement.

What isn't on-demand transport?

Passenger transport is the transport of passengers by a vehicle for hire or reward - on-demand transport is one type of passenger transport.

There are other types of passenger transport - these are not on-demand transport.

  • Tourism passenger transport is the transport of tourists for hire and reward to a destination listed on advertised publicly available tour itinerary.
  • Regular passenger transport is the transport of passengers for hire and reward that is conducted according to regular routes and timetables.

Whilst these types of passenger transport are not on-demand transport, the vehicles and drivers involved in tourism and regular passenger transport are regulated by the On-demand Transport business unit at Department of Transport.

There are also types of transport that are not passenger transport but for which drivers may require authorisations, these include courtesy and community transport.

  • Community transport is the transport of passengers undertaken by a not-for-profit service whose purpose is to improve the community they service. For example, a bus transporting residents of a nursing home.
  • Courtesy transport is transport provided to a customer, where the transport is additional to the primary service provided. No profit is taken from the courtesy transport by the provider. For example, a courtesy car for a car repair service.

On-demand transport reform: safe, fair and simpler for all

The Transport (Road Passenger Services) Act 2018 (the Act) was passed in October 2018 and will be progressively implemented starting in early 2019. In mid-2019, the Act will replace the Taxi Act 1994 and parts of the Transport Co-ordination Act 1966.

The primary focus for reform is to ensure that essential public safety and consumer protections remain, while allowing the taxi and charter industries the flexibility to compete and grow in the changing market environment.

For further information, visit the On-demand transport reform page.

ODT_FS_ODTReform_WhatisPassengerTransportService.pdf icon What is a passenger transport service? (Fact sheet) Kb
Opens in a new window Transport (Road Passenger Services) Act 2018


Page last updated: Mon Mar 18 2019 5:43:47 PM