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 services provided by:

  • 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 made payment of some kind 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 is passenger 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 which are not on-demand.

  • 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.

While 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 the Department of Transport.

  • There are also types of passenger transport services that are not primarily established with a view to profit or commercial gain – community and courtesy 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 local government service transporting seniors to appointments, shopping or events.
  • Courtesy transport is transport provided to a customer, where the transport is additional to the primary service provided. No profit is taken by the provider as a result of the courtesy transport service. For example, a courtesy car for a car repair service.

For more information, read the What are community and courtesy transport services fact sheet below.

ODT_FS_ODTReform_WhatareCommunity_courtesy_transport_services.pdf icon What are community and courtesy transport services? (Fact sheet) Kb

  Glossary of common on-demand transport terms

Below is a guide to common terminology and acronyms used when referring to the on-demand transport industry in WA.

Term  Definition
Charter service

An on-demand passenger transport service that does not include a rank or hail service.

See ‘Rank or hail (taxi)’ below for more information about rank or hail services.

Charter vehicle A vehicle with a Passenger Transport Vehicle (PTV) authorisation in the on-demand charter (OD-C) category.

See ‘Passenger Transport Vehicle (PTV) authorisation below for more information about PTV categories.
Community passenger transport
The transport of passengers undertaken by a not-for-profit service whose purpose is to improve the community they service.

For example, a local government service transporting seniors to appointments, shopping or events.
Courtesy passenger transport

Transport provided to a customer, where the transport is additional to the primary service provided. No profit is taken by the provider as a result of the courtesy transport service.
For example, a courtesy car for a car repair service.

ICWA Insurance Commission of Western Australia.
Motor injury insurance (MII) Vehicle owners pay a motor injury insurance premium to cover the cost of injury that they or their vehicles may cause in a crash.
On-demand Booking Service (ODBS) A provider who takes or communicates passenger requests for an on-demand trip and connects the customer with a vehicle and driver; or a driver who makes arrangements directly with the passenger for an on-demand trip.
On-demand Booking Service (ODBS) authorisation The Levy is 10% of every on-demand fare to a maximum of $10 per trip. The Levy applies to on-demand trips in vehicles that seat 12 or less people (including driver) that start and finish in the Perth, Mandurah or Murray areas. It is expected the Levy will apply for approximately four years, to cover the full cost of the taxi plate buyback.
On-demand passenger transport levy (the Levy) The Levy is 10% of every on-demand fare to a maximum of $10 per trip. The Levy applies to on-demand trips in vehicles that seat 12 or less people (including driver) that start and finish in the Perth, Mandurah or Murray areas. It is expected the Levy will apply for approximately four years, to cover the full cost of the taxi plate buyback.
On-demand transport 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.
On-demand Transport (OdT) This acronym refers to the DoT business unit, not the industry in general.
Passenger Transport Drivers (PTD) authorisation An authorisation for a person who drives a vehicle for the purpose of transporting passengers for hire or reward. The Passenger Transport Drivers (PTD) authorisation will be introduced in mid-2020, replacing the current F and T extensions.
Passenger transport service
 
Passenger transport is the transport of passengers by a vehicle for hire or reward.

Passenger transport services include on-demand, tourism, regular or other prescribed passenger transport services.
Passenger Transport Vehicle A vehicle used or intended to be used in providing a passenger transport service.
Passenger Transport Vehicle (PTV) authorisation

An authorisation to operate a vehicle to provide a passenger transport service. This will replace the current taxi plate, country taxi licence, charter vehicle licence and regular passenger transport omnibus licence.

There are four categories of Passenger Transport Vehicle (PTV) authorisation:

  • On-demand rank or hail (OD-RH) = a PTV authorisation of the on-demand rank or hail category.
    Vehicles with a PTV authorisation OD-RH can ply or tout for hire on a road or in another place accessible to the public. This means they can offer trips to people on the side of the road or within a public space.
     
  • On-demand charter (OD-C) = a PTV authorisation of the on-demand charter category.
    Vehicles with a PTV authorisation OD-C can take on-demand trips that do not include a rank or hail service (i.e. charter trips).
     
  • Regular Passenger Transport (RPT) = a PTV authorisation of the regular passenger transport category.
    See ‘Regular Passenger Transport’ below for more information.
     
  • Tourism Passenger Transport (TPT) = a PTV authorisation of the tourism passenger transport category.
    See ‘Tourism Passenger Transport’ below for more information.
Rank or hail (taxi) A rank or hail service is an on-demand passenger transport service under which a person can hail or hire an on-demand vehicle while it is standing, plying or touting for hire on a road or in another place accessible to the public. This means they can offer trips to people on the side of the road or within a public space.
Rank or hail PTV (taxi)

A vehicle with a PTV authorisation in the on-demand rank or hail (OD-RH) category.

See ‘Passenger Transport Vehicle PTV authorisations’ above for more information about PTV categories.

Regular Passenger Transport (RPT) The transport of passengers for hire and reward that is conducted according to regular routes and timetables.
Regular Passenger Transport Service authorisation (RPTS authorisation) An authorisation to provide a regular passenger transport service.
Safety duties and safety standards The Transport (Road Passenger Services) Act 2018 outlines a range of safety duties and safety standards for passenger transport services, including the development and maintenance of a Safety Management System.
Safety Management System (SMS) A set of policies, procedures and plans that systematically manage health and safety at work by identifying safety risks and putting in place steps to mitigate them.
Tourism Passenger Transport (TPT) The transport of passengers (tourists) for hire or reward to destinations listed on a publicly available tour itinerary, for the purposes of tourism.
Transport (Road Passenger Services) Act 2018 (the Act) The Transport (Road Passenger Services) Act 2018 provides for the regulation of the road passenger transport industry in WA. It replaces the Taxi Act 1994 and Taxi Drivers Licensing Act 2014, and amends the Transport Coordination Act 1966 in relation to omnibus and country taxi-car licences.
Transport (Road Passenger Services) Regulations 2019 (the Regulations) The Transport (Road Passenger Services) Regulations 2019 support the application and enforcement of the Transport (Road Passenger Services) Act 2019.
Voluntary buyback for taxi plate owners (the buyback)
 

The buyback offers eligible owners and former owners of metropolitan taxi plates the opportunity to sell their plates back to the WA government.  The buyback is to be funded through the On-demand Passenger Transport Levy

See On-demand passenger transport levy (the Levy) for more information.

The estimated value of the buyback will vary according to each plate owner's particular circumstances, including how long they have owned the plate, the original price paid for it and how much the plate has earned over time. The minimum offer for a metropolitan Conventional plate (minus Hardship Fund and outstanding fees) is $100,000.

External Link Insurance Commission of Western Australia (ICWA) website
Opens in a new window Transport (Road Passenger Services) Act 2018
External Link Transport (Road Passenger Services) Regulations 2019 (the Regulations)

  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 the 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: Fri Jul 19 2019 9:43:23 AM