A company director linked to an Auckland taxi firm accused of 鈥渇leecing鈥 customers with eye-watering fares says he is 鈥渁bsolutely shocked鈥 at some prices being charged but has 鈥渘o authority鈥 over the fares charged by the drivers.
It comes after the Herald revealed a 68-year-old woman from Central Otago was charged $160 for a 20-minute taxi trip 鈥 a journey less than 10km - by a Crown Cabs driver during a late-night trip from Auckland鈥檚 CBD to Mt Roskill.
Several others approached the Herald alleging 鈥減rice gouging鈥 by the same company as recently as Friday following the Coldplay concert at Eden Park.
Speaking from his picturesque South Auckland home, Khalil Tajek told the Herald he was aware of some taxi drivers fleecing their customers 鈥渧ery often鈥 because they have the ability to set their own fares.
Tajek said he surrendered the licence to taxi company Crown Cabs in 2022 and the business had a name change to Crown Eftpose 鈥 providing drivers with an eftpos service for their taxis.
鈥淧hysically no Crown Cabs exists, they鈥檙e just renting my eftpos machines that I used for Crown Cabs.鈥
But when a complaint is lodged against a driver using his service, Tajek says he calls them to investigate and address the nature of any allegations made by a passenger.
Tajek said he was 鈥渁bsolutely shocked鈥 when he read the Herald article about one of his drivers charging $163.43 for a 20-minute taxi journey last week 鈥 averaging out to be just over $17 per km.
鈥淚t鈥檚 a lot of money. Especially in a time like now when everything is expensive.鈥
The taxi fare after the 20-minute journey last week was more than $140. The 68-year-old pensioner tried to argue the price but the taxi driver began shouting.
Tajek said he collects 5% off every taxi fare from drivers using his service and the drivers pocket the remaining 95%.
He said drivers would normally charge $3 to $4 per km and that the woman who said she was 鈥渇leeced鈥 should have been charged only $60 for the trip.
Tajek said when he called the driver behind the complaint, the driver claimed it was a 鈥渂usy night鈥 and that he had negotiated the price with the woman before she got in the taxi.
鈥淚鈥檓 sure he didn鈥檛 say that really,鈥 Tajek said. The Herald confirmed with the passenger that there was no negotiation before the trip.
When Tajek threatened he would take his eftpos service away from the driver, he 鈥渃ried鈥 and 鈥渂egged me for one more chance鈥 before agreeing to refund the woman $100 off the trip.
鈥淗e was apologetic and he was scared he would lose his job and licence.
鈥淚鈥檓 scared. How could a taxi driver charge someone $160 for that short of a trip. I can鈥檛 believe it to be honest.鈥
When the woman checked her bank statement, she saw she was charged $163.43 by Crown Cabs 鈥 averaging out to be just over $17 per km.
On Monday evening the woman confirmed she received the refund and told the Herald; 鈥淚t鈥檚 a tough world out there. I don鈥檛 want him to lose his job, but just don鈥檛 rip people off.鈥
Tajek said that was the highest taxi fare he had received a complaint about and alleged there would be larger amounts that were not reported by customers.
He said drivers using his businesses have 鈥渕ade mistakes鈥 in the past, charging customers $1000 to $2000 for a taxi ride. 鈥淭hey didn鈥檛 deliberately,鈥 he exclaimed.
He said he was going to send an email on Monday night to all taxi drivers using Crown Eftpose 鈥 which he said was about 150 in Auckland and Hamilton 鈥 that if they were caught price gouging he would take his Eftpos services away from the driver.
He reiterated that not all taxi drivers were doing this, only a select few. He said he had never received more than one complaint about any select driver and seemingly operated on a two-strike basis.
Small Passenger Service Association spokesman Warren Quirke said he had received 鈥渕ultiple complaints鈥 about Crown Cabs.
Tajek said he had not heard from the association but had been emailed twice a few years ago by the Commerce Commission regarding complaints of a similar nature 鈥 to which he said the customers should get in contact with him directly to 鈥渁void this mess鈥.
The Commerce Commission confirmed it had eight inquiries relating to Crown Cabs between March 2019 and July 2024.
鈥淭he reported inquiries are about high price concerns, undisclosed charges, and being overcharged,鈥 the commission said. It said it wasn鈥檛 currently investigating Crown Cabs but has previously engaged with the business and provided advice about how to comply with the Fair Trading Act.
Tajek said he wanted to educate the public to not jump into a taxi before negotiating the price with the driver.
鈥淛ust negotiate is the easiest way. There鈥檚 no shortage of cabs in Auckland.鈥
Asked what a passenger should do when drivers double-back on the agreed upon price, Tajek said that would be 鈥渋llegal鈥 and the driver would lose their licence.
Other passengers have told the Herald Crown Cabs drivers have locked the doors of their vehicles when questioned about excessive fares 鈥 which Tajek repeated was illegal.
鈥淭hey should call the police straight away and take a picture of the plate number. They [the drivers] would definitely lose their licence with a complaint like that,鈥 he said.
Deputy Mayor of Auckland Desley Simpson said the city 鈥渄eserves better than rip-off taxi fares鈥.
鈥淭his is not okay!鈥
Deputy Mayor of Auckland Desley Simpson has condemned the actions of rogue taxi drivers, saying the city 'deserves better than rip-off taxi fares'. Photo / Jason Oxenham
Simpson said anyone who believes they have been overcharged or charged an excessive fare can make a formal claim to the Disputes Tribunal.
鈥淔or other complaints 鈥 such as drivers refusing hires, failing to provide a receipt, or not charging the agreed fare 鈥 you should first contact the taxi operator directly.
鈥淥perators are required to keep a record of complaints. If you鈥檙e not satisfied with the operator鈥檚 response, you can escalate your complaint through the New Zealand Transport Agency (NZTA).鈥
Tajek said taxi drivers are the losers when customers are charged excessive fares and it鈥檚 鈥渘ot fair鈥.
鈥淣ot only Crown Cabs, the customer and public doesn鈥檛 trust taxis altogether ... Now the customer is scared of taxis. They would rather wait three hours for an Uber than ride with a taxi again.鈥
Transport Minister Simeon Brown said that the 鈥渧ast majority鈥 of cab services are law-abiding and reliable.
鈥淚t is a shame to hear that a few rogue operators are intentionally misleading customers about public transport availability and charging excessively high fares. This sort of behaviour is unacceptable.鈥
Benjamin Plummer is an Auckland-based reporter who covers breaking news. He has worked for the Herald since 2022.
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