[3] The paper set out the background to the Inquiry and raised a number of issues about the performance and state of Victoria's taxi industry.

The Minister made a number of comments about the wide scope of the Inquiry - Professor Fels has indicated that the reform task in the Victorian taxi industry is substantial.

He has warned that the taxi industry required a "very deep review that looks at fundamental questions about how the whole system works.

"The whole system of regulation is on the agenda and it is also true the Government has legislated already to set up a Taxi Services Commission to come into play after our report," he said.

The Cabcharge account payment system was established in 1976 to provide a way to pay for taxi fares throughout Australia and participating countries.

It later diversified and its key activities included technology, taxi payments and major acquisitions in the Australian bus industry through ComfortDelGro.

[10][11] The company also faced criticism of profiteering for the 10% surcharge it imposed on taxi fares paid by card and the matter was later investigated by the Reserve Bank of Australia (RBA).

However, this situation also allows the company to exert substantial and anti-competitive control over most of the Australian taxi industry[10] and to engage in profiteering activity.

Cabcharge was criticised for the 10% surcharge it collects on taxi fares paid by credit and debit cards and for the general anti-competitive control it exerts on other industry participants through its control of electronic payments and other areas of the taxi system such as vehicle and related repairs and installation of in-vehicle equipment, insurance, vehicle leasing and training.

Criticism has emanated from various sources including the chair of the Taxi Industry Inquiry, Professor Fels, the former head of the Australian Competition & Consumer Commission (ACCC), and leading card companies.

It's certainly more than 10 times the average Reserve Bank published cost.There was "no way" that credit-card processing could cost Cabcharge 10 per cent of a fare.

There is no question it pads out their bottom line, rather than reflecting the cost of the transaction.In an article in Victoria's Herald Sun newspaper, John Legge noted that customers in that state paid at least $350 million in taxi fares with banking cards, for which 95% of Victoria's taxis use the Cabcharge system.

[12] The Taxi Industry Inquiry made a number major criticisms of Cabcharge and its activities in its interim report.