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Running a passenger service

Updated: 3 May 2012

Starting up a new passenger service - whether you intend to operate one vehicle or many - is a major decision that should be based on quality advice and information.

We recommend that very early in your planning process, you get professional advice from people and organisations such as lawyers, accountants, insurance agents and Inland Revenue. You can also call our contact centre for advice on the vehicle use rules and regulations with which you must comply.

On this page

Getting a transport service licence

You'll need a transport service licence to operate a passenger service. Transport service licence labels must also be displayed in all buses, taxis and shuttles, as close as practical to the bottom inside of the windscreen on the passenger's side.

Find out more about how to get your transport service licence and where licence labels must be displayed.

Understanding the Operator Licensing Rule

The Operator Licensing Rule specifies the legal standards and requirements you must meet to operate a passenger service business.

It includes information for operators of:

  • small passenger service vehicles (section 3)
  • taxi services (section 4)
  • shuttle services (section 5)
  • private hire services (section 6)
  • large passenger service vehicles and dial-a-driver services (section 11).

Not sure which passenger service you come under? Call our contact centre.

Meeting vehicle requirements

Your vehicle must meet high safety standards before you can operate them in a licensed transport service. These include registration and annual licensing requirements and routine certificate of fitness inspections. Your vehicles must continue to meet these safety standards while operated in a transport service.

When buying vehicles for your business, you should also be aware of the safety features common in many modern vehicles and any features that could affect the environment.

Vehicle classes

All vehicles are defined by class, with standards applying to each class. Find out more about these standards.

Additional requirements also apply to passenger service vehicles. The Land Transport Rule: Passenger Service Vehicles 1999 sets out a number of requirements for vehicle features such as:

  • entrance and exit (section 2)
  • aisles (section 3)
  • seating (section 4)
  • emergency exits (section 5)
  • safety design features and loading (section 6)
  • stability and structural strength (section 7)
  • safety equipment such as wheelchair hoists and ramps (section 8).

Operating vehicles safely

It's important that you maintain your passenger service vehicles in a safe and serviceable condition at all times. Attending to faults when they become apparent will keep you in business and save you money in the long term.

Road user charges

Road user charges apply to:

  • all vehicles with a manufacturers' gross laden weight of 3500 kilograms
  • all vehicles of 3500 kilograms or less powered by fuel not taxed when sold, such as diesel-powered vehicles.

Find out more about other vehicle types and road user charges.

Developing a safe driving policy

Every dent, prang, speeding ticket or collision involving your vehicles will affect your business's financial bottom line. So it makes sense to encourage safe driving - and potentially save lives - by making it an integral part of your business policy.

Get help with developing a safe driving policy.

The chain of responsibility

The 'chain of responsibility' recognises that everyone who influences a driver's behaviour and compliance should, and must, be held accountable if that influence results in non-compliance.

Find out more.

How we can help

Call our contact centre for advice on and help with complying with all transport-related rules, regulations, and vehicle standards and requirements.

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