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But critics say the implementation doesn’t go far enough to protect the majority of unwitting customers from being overcharged.
Cabcharge’s new technology will directly connect the in-car payment terminal to the meter.
If a taxi has a sticker offering the service, the driver must comply.
“A seamless experience for passengers where they know they will only have to pay the specified fare at the end of the journey,” said Cabcharge COO Gary Backus.
“There is no reason for a driver to try to bargain or barter with a passenger.”
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The new technology will initially only apply to people using Cabcharge products.
The Victorian state government has said penalties are in place for drivers caught overcharging, but industry insiders say enforcing those penalties is where the real difficulty lies.
The Transport Party’s Rod Barton said the new technology was a good idea but a “step” towards tackling wider price rises.
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