analysis: driver shortage
A shortage of drivers is causing a new crisis to thwart the taxi trade’s post-Covid-19 revival
Driver drought
Mark Bursa
T
axi and private hire firms are starting
to see a recovery in work – but their attempts to rebuild after Covid-19 are being hampered by a nationwide shortage of drivers.
The shortfall is up to 40% and is consistent across the UK, which presents serious challenges to businesses looking to get back to prepandemic levels of service. As the hospitality sector reopens and with a removal of all remaining lockdown restrictions due next month, demand for taxi services is rising, and in some sectors has returned close to prepandemic levels. Only airport runs are still not happening due to ongoing international travel restrictions. But now the industry is paying the price for the significant decrease in work during the pandemic, during which the industry lost large numbers of drivers. In addition to more than 200 drivers who lost their lives to Covid, many have given up passenger work, handed in their licenses and become delivery drivers. Others have left the industry completely. In addition, the catastrophic effects of Brexit are now starting to be felt, with large numbers of European migrants leaving the UK, causing shortages in lower-paid jobs such as driving, as well as in agriculture, healthcare and hospitality. This combination of factors has created a significant gap between the demand for taxis and the supply of available drivers.
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It’s not only established operators that are short of drivers. Even Uber is struggling to meet its recruitment target – which is likely to accelerate its expansion via the Autocab iGo network rather than via direct recruitment. Uber is reporting that demand is now comparable to pre-pandemic levels. Across Europe, Uber reports gross booking (total spending on rides adjusted to promotions and discounts) at 80% of the level reported in the same period in 2019. “We were frankly not anticipating the speed of the recovery we have seen in some key geographies and definitely the UK,” said Anabel Diaz Calderon, Uber regional general manager. Surprisingly, London, Uber’s largest market, is not growing as fast as other cities, as city workers and tourists are taking their time to return. But other UK cities such as Birmingham, Manchester and Leeds are showing such strong passenger demand that Uber is having difficulty keeping up, Diaz Calderon added. One city whose taxi trade has been devastated over the past 15 months is Plymouth. Local operators estimate that about 400 hackney carriage and private hire drivers have given up, with many getting delivery jobs with the likes of Amazon or returning to Eastern Europe because of Brexit. Some older drivers have simply retired rather than take the risk of carrying passengers with Covid-19. The shortage of available drivers has become a major challenge for firms such as Need-A-Cab in Plymouth, which recently became the first Autocab iGo user to start fulfilling jobs in the city on behalf of Uber. Director Dave McIntosh said: “We now have jobs coming through
JULY 2021
