A taxi waits at a rank a
A taxi waits at a rank a JOEL CARRETT

Victorians to pay $2 levy on Uber for cabbies

EVERY taxi or Uber car ride in Victoria soon will include a $2 levy per trip to help fund the biggest industry shake-up in decades.

Taxis will be able to set flexible fares as part of the changes that will legalise Uber and similar services.

The levy money will go into a $378 million fund to compensate taxi drivers. The Herald Sun reports there will be a licence buy-out for taxi drivers.

The value of taxi licences has plummeted from as much as $515,000 last decade to about $150,000, angering some owners who bought plates as a retirement income.