Rarotonga ride-hailing launch puts transport rules in the spotlight

Rarotonga now has a locally built ride-hailing service but its launch is also exposing a gap in the Cook Islands' transport rules, which date back to 1967.

Smartie Rides has officially launched on the islands, giving locals and visitors a way to book a ride through an app rather than arranging a taxi.

The service comes as the Cook Islands looks to modernise its land transport system, with its own transport policy acknowledging there is currently no licensing framework specifically for vehicle-sharing services such as Uber and other ride-hailing platforms.

The policy says the Transport Licensing Act 1967 needs to be updated to cover them.

Brett Baudinet, Smartie founder and CEO, says the gap is an opportunity to build a Pacific solution and not wait for an overseas company to fill it.

“Taxis are extremely expensive,” Baudinet tells Pacific Days. “We wanted to bring in a solution that was more affordable for our visitors, which therefore improves their experience...but also to help our locals on two levels.”

Watch Brett Baudinet's full interview below.

Smartie says its rides offer upfront pricing with the service designed to make short trips easier to afford.

Katie, a Smartie app user, found it “convenient and affordable”.

“Smartie Rides was so handy while I was in Rarotonga! It was such a convenient and affordable way to get around the island,” she said in a review.

Brett Baudinet with Smartie Ride users. Photo/Supplied

Baudinet adds that providing affordable rides also tackles road safety issues.

“Drink driving is quite a big problem,” he says. “It’s cheaper than getting a taxi, it’s the wrong mindset.”

The Cook Islands already has a public bus network, with services running clockwise and anti-clockwise around Rarotonga. But visitors and locals can also need transport outside bus times or for direct trips, creating a market for taxis and private services.

The Ministry of Transport says all passenger and taxi services must operate under transport licences issued by the Cook Island’s Transport Licensing Act hasn’t been updated since 1967, so ride-hailing isn’t legally defined.

Its current licensing information says the system is governed by the Transport Licensing Act 1967 and later amendments.

Baudinet says Smartie worked with the Ministry of Transport to launch Rides under the existing taxi licensing and safety rules.

Brett Baudinet. Photo/Supplied

For him, the bigger goal is keeping the value created by Pacific technology in the Pacific.

Offshore software providers can struggle to adapt to island realities, including Rarotonga's lack of formal street addresses. Smartie's local engineering team has built the platform around those conditions.

“We maintain the revenue here in our Pacific Islands and it helps grow our nation further,” Baudinet says.

“I’m hoping we start opening the eyes up with our government departments to say, 'Hey, you need to be supporting local a lot more so that we can maintain our population within the islands and maintain the wealth within the country’.”

Online forums are filled with travellers and Cook Islanders abroad sharing their experiences - and hefty expenses.

“We got a taxi from the Airport to Arorangi bnb which was like a 7-10 minute drive for $60nzd. I thought we got hustled,” Ang Inia writes in a Facebook post.

Another traveller, Michelle McClunie, commented about being left stranded by a pre-booked service.

“We had a terrible experience with Island car and bike hire. We waited for an hour at the airport for our car, it never showed up. They had double booked our car, the airport shut and we were stranded,” she writes.

This move puts pressure on standard taxis, where according to the Cook Islands Taxi association (CITA), rates run about NZD$3 per kilometre and airport transfers start at NZD$25 per person.

CITA has been approached for comment regarding ride-hailing competition and current fare structures.

Smartie began as a digital payments platform and has expanded into food delivery, with tours also planned. The company sees Rarotonga as a testing ground before expanding into up to nine Pacific nations over the next three years.

“We might be small nations, but we’ve got big minds,” Baudinet says, hoping the platform proves Pacific entrepreneurs can build, own and scale digital solutions to serve their own communities.