New technology from Cabcharge will see taxi drivers unable to overcharge passengers, in a move described as “a step in the right direction”.

Cabcharge chief operating officer, Gary Becus, warns taxi drivers will find loopholes in order to get more money from passengers.

“It’s important to know that behaviour [demanding a higher fare] is illegal in the Victorian market, so our job here is to take a leadership position,” he told Tom Elliott.

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Director of the Victorian Taxi’s Association, Peter Valentine, says a lack of regulations in the industry has resulted in a high number of taxi operators who have to compete.

“If you drop them [regulations], and you don’t have enforcement either, then you have a problem that grows like Topsy,” he told 3AW Breakfast.

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Image: iStock.