Payment and transport business Cabcharge is searching for new income beyond taxis and considering a name change after a 13 per cent fall in half year profit.
The business is under pressure from rival payment and booking services such as Uber, Gocatch and Ingogo, and is considering ditching the negative connotation of "charge" in its branding.
"The enduring solution to our challenges will come from new revenue streams and we are determined to leverage our payments expertise outside the taxi industry," chief executive Andrew Skelton said.
The company blamed a fall in half year profit to $31 million on lower income due to price caps on taxi service fees in Victoria and NSW, a move the Western Australian government has also now made.
That is expected to deliver a further $4 million hit to revenue.
Such changes increase the importance of finding new sectors in a payments industry that is increasing in size more payments are made with card or transfer.
Cabcharge said it has achieved annualised savings of $7 million, including reducing taxi driver bonus schemes.
Cabcharge shares gained 14 cents, or 2.8 per cent, to $5.11.
REGULATIONS HURT CABCHARGE RESULT
* Net profit of $31.2 million, down 13pct from $36m in 2013/14
* Revenue of $100.4 million, down 2pct from $102.6m
* Interim dividend of 10 cents, down from 15 cents
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