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A company director linked to an Aucklandtaxi firm accused of “fleecing” customers with eye-watering fares says he is “absolutely shocked” at some prices being charged but has “no authority” 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 – a journey less than 10km - by a Crown Cabs driver during a late-night trip from Auckland’s CBD to Mt Roskill.
Speaking from his picturesque South Auckland home, Khalil Tajek told the Herald he was aware of some taxi drivers fleecing their customers “very often” 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 – providing drivers with an eftpos service for their taxis.
“Physically no Crown Cabs exists, they’re just renting my eftpos machines that I used for Crown Cabs.”
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 “absolutely shocked” when he read the Herald article about one of his drivers charging $163.43 for a 20-minute taxi journey last week – averaging out to be just over $17 per km.
“It’s a lot of money. Especially in a time like now when everything is expensive.”
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 “fleeced” 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 “busy night” and that he had negotiated the price with the woman before she got in the taxi.
“I’m sure he didn’t say that really,” 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 “cried” and “begged me for one more chance” before agreeing to refund the woman $100 off the trip.
“He was apologetic and he was scared he would lose his job and licence.
“I’m scared. How could a taxi driver charge someone $160 for that short of a trip. I can’t believe it to be honest.”
When the woman checked her bank statement, she saw she was charged $163.43 by Crown Cabs – averaging out to be just over $17 per km.
On Monday evening the woman confirmed she received the refund and told the Herald; “It’s a tough world out there. I don’t want him to lose his job, but just don’t rip people off.”
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 “made mistakes” in the past, charging customers $1000 to $2000 for a taxi ride. “They didn’t deliberately,” he exclaimed.
He said he was going to send an email on Monday night to all taxi drivers using Crown Eftpose – which he said was about 150 in Auckland and Hamilton – 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 “multiple complaints” 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 – to which he said the customers should get in contact with him directly to “avoid this mess”.
The Commerce Commission confirmed it had eight inquiries relating to Crown Cabs between March 2019 and July 2024.
“The reported inquiries are about high price concerns, undisclosed charges, and being overcharged,” the commission said. It said it wasn’t 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.
“Just negotiate is the easiest way. There’s no shortage of cabs in Auckland.”
Asked what a passenger should do when drivers double-back on the agreed upon price, Tajek said that would be “illegal” 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 – which Tajek repeated was illegal.
“They 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,” he said.
Deputy Mayor of Auckland Desley Simpson said the city “deserves better than rip-off taxi fares”.
“This is not okay!”
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.
“For other complaints – such as drivers refusing hires, failing to provide a receipt, or not charging the agreed fare – you should first contact the taxi operator directly.
“Operators are required to keep a record of complaints. If you’re not satisfied with the operator’s response, you can escalate your complaint through the New Zealand Transport Agency (NZTA).”
Tajek said taxi drivers are the losers when customers are charged excessive fares and it’s “not fair”.
“Not only Crown Cabs, the customer and public doesn’t 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.”
Transport Minister Simeon Brown said that the “vast majority” of cab services are law-abiding and reliable.
“It 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.”
Benjamin Plummer is an Auckland-based reporter who covers breaking news. He has worked for the Herald since 2022.
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