Taxis Palmerston North drivers Jashmeet Dua, left, Sanjiv Maggon and Khurrum Mughal, are part of a group of nearly 30 owner/operator drivers frustrated that they are still expected to pay a levy when they are not earning.

A group of Palmerston North taxi drivers not working during the coronavirus lockdown, is asking for relief from operating fees they are still expected to pay.

Taxis are an essential service and are available to provide transport for the injured, elderly and disabled, or other essential workers over the next four weeks.

But, facing huge reduction in demand, Palmerston North taxi companies are operating with reduced fleets, down to half the usual number, and some drivers are deciding not to work due to the coronavirus risk and lack of fares.

A group of nearly 30 owner-operator cabbies, who drive for Taxis Palmerston North, are frustrated they are still expected to pay a weekly levy to the company while they aren't working.

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Unlike cabbies who drive company-owned cars, they aren't direct employees but independent contractors, who pay the taxi company fees for equipment and call-centre support to find fares.

The taxi drivers' spokesman, Jashmeet​ Dua, said most drivers who chose to stop operating during the lockdown had young children they didn't want to risk exposing to coronavirus.

It was unfair to expect them to keep paying for services they weren't using when they've got no steady income, he said.

"[The company] can't guarantee enough work for everybody ... [and] I know I don't want to go out and put myself and my family at risk just to take home $5."

As contractors, owner-operator drivers don't get annual leave or sick day entitlements, but they are eligible for the Government's emergency income subsidies.

Dua said he couldn't afford to pay a levy, even with that support, because it all went to mortgage payments and supporting his wife and their two daughters, aged 7 and 13.

Aerial Capital Group, the Australian parent company of Taxis Palmerston North, offered drivers a 19 per cent discount on the levy during the lockdown, but they would still have to pay $175 a week.

Managing director Mark Bramston said even as an essential business, Taxis Palmerston North has been hit hard.

Normally it would have 60 cabs on the road. On the first day of the lockdown that was down to 23. They took 240 fares, 70 per cent fewer than normal.

WARWCK SMITH/STUFF Palmerston North streets are largely deserted in the lockdown, but essential transport services such as taxis are still on the road to provide for the injured, elderly or essential workers who need a lift.

​Bramston said the company was looking at fairer ways to handle the levy based on how much work a driver was doing.

He understood their frustration and worry, but part of it appeared to be due to miscommunication of stop-gap measures put in place until the new system was ready.

Only drivers still taking fares are meant to be paying $175 each week, the rest are charged a weekly $38 "stand-by fee" to help keep the call-centre afloat.

Dua said drivers had not been told about the lower levy fee, and called for clearer communication.

Even the stand-by fee was unfair, he said, when they had no income at all and were struggling to make ends meet.

Palmerston North's other major cab company, Taxis Gold and Black were also operating with a reduced fleet.

Taxis Gold and Black managing director Rodger Taylor said drivers who were approaching retirement, were vulnerable to coronavirus, or had children, were given first option of being taken out of the roster rotation

Gold and Black's owner/operator drivers were likely to have their levy switched from a flat fee to a percentage of their earnings. But that was still being discussed with drivers, Taylor said.

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