Taxi! Arrival of a new niche market
The National Stock Exchange (NSX) has launched a taxi licence trading market, a first for the country.
The National Licence Exchange (NLX) will trade taxi licences and leases throughout Australia online.
The trading system will be accessed by registered NLX taxi brokers, who will bid for licences and leases.
Investors will have access to market research and historical price data on licences.
The NSX was appointed in 2006 by the Victorian State Government to operate a centralised licence trading system for Victoria.
This has seen more than $300 million in licences traded in its first two and a half years of operation.
NLX managing director Roma Poole said further growth in licence trading was now expected as the system went national.
“We are in the process of signing brokers in the Sydney CBD, Brisbane CBD, Western and South Australia,” she said.
The first two national taxi brokers in Victoria, based in Frankston and Ballarat, have been signed up.
“There is a great opportunity here for creating a new and exciting market nationally and we have already received strong interest.”
The Frankston broker Kevin Dunn, managing director of Frankston Radio Cabs, said the exchange would enable a broader base of investors to be accessed.
“In an extremely competitive business environment, listing our licences on the NLX is a clear winner,” he said.
“It gives our shareholders a professional option when developing their exit strategy after, in most cases, a lifetime in the taxi industry.”
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