Too much regulatory uncertainty, especially in Victoria.
Who would've thought sovereign risk came into play with the taxi industry.
Unfortunately policymakers and some economists have NFI when it comes to the operation of certain businesses, thinking their fluffy ideas apply across the board.
In Victoria, despite the announcement of reforms, all they have done is re-badge the regulator and engage in a further talkfest. In the meantime, market participants who are unable to adjust their regulated fares and have been subject to a market flooded with competition over the last 5 years are going under.
Just to show how good governments are at running transport, check the filth of public trains & trams that also shut down for service after midnight!
CAB Price at posting:
$4.00 Sentiment: Hold Disclosure: Held
