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Types of passenger service

Updated: 25 November 2009

Whether using buses, shuttles or taxis, if you're involved in transporting people for hire or reward - or transporting more than 12 people - you're considered to be providing a passenger service. This section describes the five main types of passenger services available in New Zealand, and the types of vehicle that provide these services and for which a transport service licence is needed.

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Buses

Most bus services are provided by large passenger service vehicles, which have seating for 12 or more people. This requires a transport service licence whether or not the service you offer is for hire or reward. Bus services include long-distance (intercity), city and suburban transport and tour coaches.

Taxis

Taxis are usually cars similar to those used for private motoring, but also include minibuses (small vans). They differ from other passenger service vehicles because they are fitted with 'Taxi' signs on their roofs and the drivers use taxi meters to determine the fares that customers are charged. Not just anyone can provide taxi services - only approved taxi organisations can operate them.

Shuttles

Shuttles are minibuses that can carry between 9 and 12 people including the driver. They often tow trailers that hold passengers' belongings.

Shuttles transport people to and from major transport centres, railway stations, bus terminals, airports, private homes, hotels and motels. A shuttle journey must either start or end at a railway station, bus terminal, airport or ferry terminal.

Private hire

Private hire services typically offer a 'limousine' experience, using vehicles without any signage to indicate they are passenger services. Hotels often use them to transport VIP guests, who pay a fee for the service.

A private hire journey must be pre-booked.

Dial-a-driver

Available in some towns and cities in New Zealand, dial-a-driver services take private motorists home (or to other destinations of their choice) in their own cars - usually when the motorists don't believe they are capable of driving themselves safely.

The dial-a-driver service takes a second driver to the customer's car. This driver then drives the customer's car plus the driver and any passengers to their destination, charging a fee for the service.

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About passenger service vehicles.

Hire or reward

This term is often used to describe a situation in which a service is performed; generally the service will involve the use of a motor vehicle. Hire or reward however is not defined in law although there are numerous references to it. The courts have established many precedents that can be used as guidance in determining if a hire or reward situation exists.

Is there a difference between 'hire' and 'reward'?

'Hire' means there is specific compensation for the carriage of passengers or freight, but it is not necessary that the carrier makes a profit.

'Reward' means any 'valuable consideration', usually in situations where one person performs a useful service for some other person, and the person performing the service is given recompense (reward) for that service. It includes cases where there is no obligation to pay.

Reward is not just an alternative word for hire.

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