Black & White Cabs - proposed acquisition of business and assets of Palcrest Pty Ltd and related entities

Summary

Black & White Taxi Management Pty Ltd (part of the Black & White Cabs Group of companies) and related entities propose to acquire the business and assets of Palcrest Pty Ltd and related entities. Palcrest operates a taxi management business that manages taxi licences and associated vehicles that are affiliated with Yellow Cabs Toowoomba. The proposed acquisition also involves certain taxi licences that are leased or managed by Palcrest.

Market definition

The ACCC considered the following markets in its assessment of the proposed transaction:
- regional markets (i.e. Toowoomba, Oakey and Crows Nest, each in Queensland) for the supply of taxi services to consumers;
- regional markets (i.e. Toowoomba, Oakey and Crows Nest, each in Queensland) for the supply of taxi depot services to taxi operators; and
- the Queensland market for the supply of booking dispatch services to taxi operators.

Competition analysis

In reaching its conclusion not to oppose Black & White's proposed acquisitions in Toowoomba, the ACCC took into account, amongst other factors:
- that Black & White Cabs would continue to be constrained from degrading services to consumers and raising fees to taxi operators due to the continuing presence of Yellow Cabs in the Toowoomba taxi service area; and
- the regulation of the provision of taxi services in Toowoomba including pricing to end consumers.

The ACCC did not oppose the separate acquisitions by Black & White of a single taxi licence in the towns of Oakey and Crows Nest, Queensland, as each acquisition represents a bare transfer of the licence in that market.