TaxiPoint December 2021 Edition 32 by TaxiPoint

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Edition 32 | DECEMBER 2021

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DECEMBER 2021 - Edition 32

EDITORIAL

A MERRIER CHRISTMAS THAN THE LAST!

TaxiPoint Chief Editor: Perry Richardson TaxiPoint Editor: Michael Murphy TaxiPoint Publishing & Advertising Manager: Lindsey Richardson Visit us online at: www.taxi-point.co.uk Write to us at: contact@taxi-point.co.uk Advertising enquiries at: advertising@taxi-point.co.uk The publishers reserve the right to refuse, withdraw, amend or otherwise deal with all advertisements without explanation. All advertisers must comply with the British Code of Advertising practice.

Always one to look for the positives, at least we can all be a little more optimistic this December than we were this time last year! For drivers it’s been a good few months of increased demand to begin clawing back some of the losses sustained over the coronavirus lockdown period. So what does 2022 hold for the industry? Working on the basis there’ll be no more restrictions placed on people I can see a lot of changes in the sector. Recruitment will be key for many authorities and operators, as will the shift to Zero Emission Capable (ZEC) cabs. Fare prices are likely to rise significantly to entice cabbies back across the UK too.

So long as Omicron doesn’t throw a spanner in the works there’s lots to be excited for in 2022.

The views expressed in this publication are not necessarily those of the publishers. All written and image rights are reserved by the author as displayed. Reproduction in whole or in part without prior permission from the publisher is strictly prohibited. Copyright brand TaxiPoint 2021. Creative Common image licenses displayed where applicable.

Merry Christmas to you and your family,

From Perry Richardson and the TaxiPoint team

DECEMBER 2021 - Edition 32

GUEST WRITER

You may have recently heard that my Bill on regulating pedicabs is progressing through Parliament, and I’m delighted that the Government has decided to support it. I’ve had literally thousands of complaints from local residents and businesses in my inbox on the issue of unlicensed pedicabs. Noise and anti-social behaviour issues are most common - I am constantly told they block roads, play loud music late at night, and they aggressively tout for business. One constituent of mine said: “I have no choice but to listen to music hour after hour, day after day, and often until the early hours of the morning. They are left in situ, able to do it as they all know, the council and the police have no powers to stop them.”

DECEMBER 2021 - Edition 32

Image credit: members.parliament.uk (CC by 3.0)

NICKIE AIKEN MP Another said: “They have no regard even for a disabled person. My friend is scared to leave home alone, as she fears being knocked down not by a car, but by pedicabs.”

metropolitan Public Carriage Act 1869) in Greater London and thus do not fall under TfL licensing powers. They are the only form of unregulated public transport in the Capital, and thanks to this legal loophole, neither drivers or vehicles are checked or licenced. It is frustrating that this is an issue singular to London, in the rest of the country local authorities can, and do, licence these vehicles.

There are cases of rogue pedicab drivers operating without insurance, without training, or any safety checks on their vehicle. And they know they can get away with it. (I should emphasise that there are pedicab firms that undertake their own voluntary vehicle and driver checks and have the right insurance.)

If successful, my Bill will help fix these problems. It will introduce some basic regulations which will bring pedicabs in line In previous police operations, rogue drivers with taxis and private hire vehicles. It will mean TfL can introduce a licensing system have been found to be in breach of behaviour orders, immigration laws, and in for pedicabs which will set standards for operators, vehicles and drivers. It will make some cases they have held criminal records. This gives me deep concern for the sure the passengers and the public, especially women are kept safe. safety of passengers, especially women. I am disgusted by reports of intimidation I’m pleased to see my Bill has the support and allegations of sexual harassment. This of London Councils, TfL, the London kind of behaviour creates a deeply Pedicab Operators Association, residents, unpleasant street environment for women, and businesses of all sizes in my who have the right to use this space in the constituency. It has cross-party support, same way as men - and they should feel even from the Mayor of London. safe in doing so. This is not a Bill to ban pedicabs. Pedicabs

Rogue drivers also exploit our tourists. Though some larger pedicab firms may choose to publish a fare schedule, they are not obliged to in London. In fact, only the other day I found out that two tourists were being pressured into paying £380 for a ride from Leicester Square to Stratton Street – a journey less than a mile. Sadly there is very little we can do to resolve these issues at the moment. The problem is that pedicabs are currently defined as a ‘stage carriage’ (under the

indeed contribute to our amazing offer and experience in the West End. I welcome pedicabs as part of our Capital’s drive to become a greener city for us to live and work in, but they must be regulated just like taxis are.

ARTICLE BY:

NICKIE AIKEN CONSERVATIVE MP

FOR THE CITIES OF LONDON WESTMINSTER

DECEMBER 2021 - Edition 32

Charity

DECEMBER 2021 - Edition 32

May 2019 | www.taxi-point.co.uk | 20

TAXI AND PHV SHORTAGES

There are shortages in the UK taxi and private hire industry which are causing demand to go unmet. Mostly it’s a shortage of DRIVERS causing pain for both frustrated customers looking for a car and those associated to the trade. However, in one instance it’s not the DRIVERS that are lacking… it’s the number of licensed VEHICLES available to use that is the sticking point.

Since coronavirus pandemic restrictions eased in September, demand for black cabs has skyrocketed quickly. However, since the pandemic started, the capital’s taxi fleet has plummeted by 25% to around 14,000 available vehicles. In April 2020 there were 18,504 black cabs licensed by London’s regulator. Given the dramatic drop in licensed cabs, the Mayor of London is being urged to ‘do the right thing’ and extend the age limit of licensed taxis by a year to help Londoners travel safely and allow qualified licensed taxi drivers to work.

The current shortage of taxis is being squeezed further by new age limit regulations brought in by Transport for London (TfL). Older black cabs in the capital can now only be licensed for a total of twelve years instead of fifteen. It is estimated that the fleet will lose another 1,500 vehicles based on the age of vehicles over the next 12 months. Paul Brennan, LTDA Chairman, said in TAXI Magazine: “It is clear to just about everyone that lives or works in London that there is currently already a real shortage of available taxis.

DECEMBER 2021 - Edition 32

TAXI AND PHV SHORTAGES “This is obviously also the case for the many qualified drivers that require access to a cab as well. However, this is not something that has come out of the blue or suddenly reared its ugly head – we’ve all been acutely aware that this would be a problem, and despite calls from the trade, the Mayor seems unwilling to revisit the premature scrapping of taxis that have reached an artificially-set age limit of his choosing. An age limit by the way, that was set pre-pandemic and so in a completely different world to the one we currently inhabit.”

earned the right to work but due to circumstances way beyond their control can neither afford to buy a new cab or find one to rent.” So how much has the taxi fleet changed pre and post pandemic? Here we breakdown and compare the age and type of vehicles licensed in April 2019 and July 2021 respectively. It’s only here that you can really see where the fleet was hardest hit over the last two years. Unsurprisingly, older diesel vehicles were lost over this two-year period. A mixture of vehicles reaching their age limits and drivers cashing in on incentives offered by the Mayor of London saw thousands of roadworthy black cabs lost, never to return despite the shortage.

Brennan added: “All that is required is a simple extension to the life of a small percentage of taxis. This could make all the difference to those men and women who want to work, have

Number and age of licensed taxis in London (TfL data) 2019 2021 2019 2021 2019 2021 2019 2021 2019 2021 2019 2021 2019 2021 2019 Age (Years) DYNAMO LEVC METROCAB 0 4 65 1945 593 1 26 977 1614 2

1463

204

TX1

TX2

TX4

VITO

1 581

819

214

2021

Grand Total 1949

658

132

1110

1640

1146

1727

1464

794

821

1212

1029 717

220

355

1249

1072

1128 843

255

122

1383

965

634

884

522

117

1156

1001

731

830

422

313

1153

1143

968

365

233

342

1201

707

877

661

256

225

1134

886

846

638

179

110

1025

749

788

511

836

596

1269

377

404

1022

404

430

1364

676

8 9

11 12 13 14

16 17

4 4

2922 3874

1254 341

899

123

1362 246

Grand Total

848

115

848

115

3142 399 9779 6839 3415 2499 19292 13710

Change (#)

952

-2

-20

-2743

-2940

-916

Change (%)

2275%

33%

-66%

-74%

-77%

-30%

-27%

-5582

-29% DECEMBER 2021 - Edition 32

TAXI AND PHV SHORTAGES In the two-year period analysed by TaxiPoint, 77% of the remaining TX2 black cabs were wiped out of London. Just 399 TX2 taxis remained in July 2021 compared to the 3,142 licensed just two years earlier.

916 have been lost in the two-year period.

With all this in mind, the taxi industry and its loyal customer base requires a period of stability post-pandemic to begin meeting the demands of Many might think that the TX4 hasn’t commuters. The Mayor of London been affected too much given its could extend the life of some taxis by cleaner credentials. However, a a year. The Government could staggering 2,940 (30%) have been support fleets and individual drivers scrapped or sold on to other cities. with low-cost finance deals and These perfectly good, purpose-built grants. And importantly, cabbies wheelchair accessible vehicles are themselves could still invest to secure simply not being replaced at the same his or her future rate as they are being lost. in the industry. It’s the same story for the trusted Mercedes-Benz Vito taxi. A total of

DECEMBER 2021 - Edition 32

ARTICLE BY: PERRY RICHARDSON TAXIPOINT FOUNDER

DRIVER RECRUITMENT

Alarm bells are ringing in the cabbie community after data revealed the number of students currently being tested to become London taxi drivers has fallen to its lowest level yet, to just 552. In November 2019 the number of candidates studying the Knowledge of London (KoL) at the testing stages, otherwise known as ‘Appearances’, dropped below 1,000 for the first time and stood at 943. In addition, there were 714 candidates that had not yet reached the testing stages, but were signed on to the KoL and learning the capital’s road network.

Fast forward post-pandemic restrictions to August 2021 and the number of KoL candidates at the testing stages tumbles further to just 552, and worryingly only a further 363

candidates are currently waiting to reach the testing stages. The KoL taxi driver test has recently come under scrutiny as industry representatives look for ways to increase the number of students undertaking the training. What is the Knowledge of London? As the iconic black cabs can be hailed in the street, taxi drivers must have a thorough knowledge of London within a six-mile radius of Charing Cross. Tens of thousands of road names and places of interest must be learnt. This is why taxi drivers have to learn and pass the world -famous Knowledge. The KoL was introduced as a requirement for taxi drivers in 1865 and completing the test usually takes students three to four years.

DECEMBER 2021 - Edition 32

DRIVER RECRUITMENT How do you get tested on the Knowledge of London?

2,337 hold ‘Yellow‘ Suburban licences.

Each appearance usually consists of four questions about the shortest route between any two points in London. An appearance takes about 20 minutes, and you'll get a score from A-D.

What changes are being called for?

At Stage 3, appearances are about 56 days apart, at Stage 4 they are about 28 days apart, and at Stage 5 they are about 21 days apart. On average you will have to score on four appearances to accumulate enough points to progress to the next stage.

mouth encouragement from those working within the trade would have been enough. However, with the explosion in social media that has now changed to become more of a hindrance when it comes to recruitment.

There are currently 20,027 licensed taxi drivers in the capital. Of those 17,910 hold All London licences, otherwise known as ‘Green Badges’, and

having a moan up on twitter!

Let’s start with the obvious measures TfL could take to improve take up onto the KoL. Scrubbing the fees to sign onto Depending on your score you the KoL would be a great start will accumulate points; when and even subsidising access to you have enough you will KoL schools would speed up the progress to the next stage, when process for students. appearances will become more There is also an issue when it frequent. However, if you get comes to the advertisement of too many Ds, you may be put the role to become a London taxi back to a previous stage. driver. In the past, word of

Jay Nicola, a driver who passed According to trade sources a the KoL in early 2020, said final ‘Suburban’ test has recently negative drivers play a big part in been condensed to include the lack of recruitment onto the fewer routes out of central Knowledge. He said: “Drivers London into the suburbs to claiming it's 'dead' and 'not speed up the final testing stage. worth doing anymore' are also Upon completion of the 100% part of the problem. We all ‘Suburban’ test, the KoL student know it's worth doing and isn't will then be handed their bill and dead. badge to allow them to ply-for- “If it was that bad, they wouldn't hire as a licensed taxi driver. be sat in their cab on a rank

DECEMBER 2021 -

“The doom and gloom this trade brings on itself is shambolic.”

Another cabbie added: “Most responses are negative and Edition that’s all32 I heard from cabbies

DRIVER RECRUITMENT when I was on the KOL.

“Sometimes I would get home and wonder if I was wasting my time, but so glad I persevered because I have the best job in the world in my opinion.” There is also the idea that the Knowledge should be better promoted as a career option to young adults leaving A-Level education in the capital. You must be 18 years old at the time of applying to join the KOL and can only become a licensed taxi driver once you reach 21 years old.

One cabbie, Russell Simmons, thought KoL students should be handed an exemption from the Congestion Charge to help them learn the roads. Simmons said: “When they sign on they should be exempt from congestion charge so they can come out during the day. “My son did it in a Smart car like many other people but could only come out after 10pm at night.” And finally, the last one, and possibly the most important, is not being ‘coy’ about the earning potential handed to licensed London taxi drivers.

There are not many jobs that will allow a 21-year-old access to starting their own business up in a stable People sign up on the KoL because there’s a income trade and many argue this is not spoken about guaranteed job at the end of it, but they need to be enough. told reliably what wage they can expect to be earning from the outset. One cabbie who passed the KoL in 2012 said: “At the end of the day this job is the best, and anyone can do Is it worthwhile leaving your current job as a postman, it, but you’ve got to do the KoL. a delivery driver or a private hire driver, to take on the KoL? Financially yes, but how many know that and can “I done it because I was getting paid rubbish money trust it’s true? and I was determined to pass it to earn better.”

DECEMBER 2021 - Edition 32

DRIVER RECRUITMENT The question potential KoL students should ask themselves is why so many cabbies don’t leave the industry to go and work in other low paid roles instead. Like with any job, the role of a taxi driver has its drawbacks and will not be for everyone. If you do not like interacting with people, then this is definitely not the job for you from the outset! But the job is rewarding both financially and in terms of job satisfaction.

SUGGESTED CHANGES: •

Remove ‘Red Line’ on appearance testing

•

Remove fees to start the KOL and look into possible funding options

•

Remove Congestion Charge fees for all KOL students

•

Remove the need for final ‘Suburban’ runs test

•

Promote case studies based on drivers who have recently joined the industry. Was it worth it?

Tweaks are needed from everyone connected to the trade should the KoL survive long-term and they must • come now. •

Promote the true earning potential of the job Promote the role of a licensed black cab driver as a long-term career option

•

Promote the role on social media via targeted and trusted channels

•

Stop the negative ‘doom and gloom’ on social media from those in the trade comparing the industry to decades in the past

•

Stop closing road access to licensed taxi drivers to provide long-term confidence in the trade

•

Better support from those within the trade to help and mentor those studying.

ARTICLE BY: PERRY RICHARDSON TAXIPOINT FOUNDER

DECEMBER 2021 - Edition 32

NEW TAXI TAX CHECKS

Jonathan Yeomans, Head of Tax at untied, the UK's • PHV operator licences. personal tax app, gives us the low down on the There are also similar rules being introduced for new tax checks being introduced for taxi and PHV scrap metal dealers. drivers from next April… Whilst initially these rules will only apply in With just four months to go until the introduction England and Wales, the Government is planning to of HMRC's new 'conditionality' tax checks, the extend this process to drivers in Scotland and clock is ticking on the time you have left to make Northern Ireland from April 2023, impacting a sure you are ready for the new rules that will apply further 50,000 businesses. to taxi and PHV licences from 4 April 2022. These are big changes that have been in planning 'Conditionality' or 'tax conditionality' is the way since 2016. HMRC is spending £9 million to HMRC describes these new tax check conditions. implement these changes. Local authorities in That's because a local authority's decision to issue England and Wales that administer these licences a new licence will be conditional on the applicant will also have a new role recording the outcome of having successfully completed a tax check. the applicant tax check on their systems. HMRC estimates it will cost local licensing authorities at Who is affected by these new rules? least £1.5 million to change their systems and These changes will affect all taxi drivers, private processes to cope with these rules. hire vehicle drivers, and businesses operating in HMRC also says there will be continuing costs to these sectors. businesses completing the tax check each time HMRC estimates that the first tranche of they renew their licence. conditionality measures will significantly impact around 400,000 self-employed drivers in England So, what exactly does this all mean? and Wales in the first 12 months. Specifically, the The main changes are around licence renewals. following licences will be subject to a tax check: If you are a first-time licence applicant, you'll just • Taxi driver licences be signposted towards tax information and you'll need to provide the local authority with • Private hire vehicle (PHV) driver licences

DECEMBER 2021 - Edition 32

NEW TAXI TAX CHECKS confirmation that you understand your tax obligations. However, if you are making a licence renewal application after April 2022, in that case, you will need to successfully complete a new 'tax check' before the local authority can renew your driver or operator licence. If you don't complete this tax check, you won't be able to renew your licence and continue trading.

registered with HMRC for self-assessment, unless you've only recently started working in this sector since 6 April 2021 or you earn less than £1,000 a year (before any expenses). The rules say you should be registered by 5 October following the end of the tax year in which you started trading. So, somebody who was selfemployed before 5 April 2021 should have registered for tax with HMRC by 5 October 2021. If that sounds like you and you haven't already registered then you need to get your skates on because it can sometimes take a while for the registration to be actioned by HMRC. If you haven't done this by the time you need to renew a licence after April 2022, it could cause a delay.

The tax check involves the applicant logging into a new online portal that HMRC is building. You'll then need to navigate through various screens and enter details about your licence and tax status. This includes providing information about the type of licence you are applying for, how long you have previously held a licence, whether or not you are You can register for tax using a service like untied already registered for tax and confirmation that or at the HMRC website below: you've included your driver income on your www.gov.uk/register-for-self-assessment/selfprevious tax returns. employed If you have already registered with HMRC for If you haven't previously declared tax and been correctly declaring your income your driving income then the tax check should be completed without any real drama and relatively quickly. One of the final tax check screens will ask you This will then give you a special code that you to confirm if you have included your driver income should record and pass onto the local authority. on your tax returns. If you haven't done this when That code is valid for 120 days. you should have then you will need to bring things up to date. There are people out there who can Clearly, nobody wants to be caught out by these help you with this and our advice would be to sort new checks and face a period when they cannot trade. However, sometimes things don't always go this out as soon as possible. If you owe back tax as smoothly as we'd like. We've highlighted below then the longer you leave this the more you will the three main reasons why things could go wrong have to pay in the long run, as HMRC will add interest to anything that you owe. for drivers.

If you're not already registered for tax

If HMRC IT systems are down

We all know that websites sometimes don't work and HMRC is no exception. HMRC has The most important thing you can do in advance said it will be introducing safeguards so that if a of these checks is to make sure you are registered failure of the HMRC website causes a problem for for tax, if you need to be. Registering for tax applicants then it could still be possible, in some basically means registering with HMRC to be circumstances, to proceed with the licence within the self-assessment tax system. renewal. If you are a self-employed driver, you should be

DECEMBER 2021 - Edition 32

NEW TAXI TAX CHECKS In order for this exception to apply, the HMRC system would need to be down for a continuous period of five days or more. HMRC will be keeping a register of any days when the site is unavailable, but it is hopeful that this exception won't actually be needed.

including drivers, who will need to report income and expenses every quarter under a new tax system called Making Tax Digital for Income Tax. Providers like untied are using technology to make this as streamlined as possible.

Not many people would argue about helping to An HMRC telephone support service will also be reduce the tax gap and bring extra money in for available for applicants who are unable to our public services, schools and hospitals. I guess complete the tax check online. we are just hoping that these measures don't put extra strain on an industry that is still suffering Why are these rules being introduced? from the impact of the coronavirus pandemic and The vast majority of drivers and taxpayers comply dealing with driver shortages. We have written to with their obligations and pay the tax that is due. HMRC to remind them to be mindful of this when In some sectors, people have fallen behind and introducing these changes, and to make it easy for HMRC want to close the gap to bring those people people to catch up on their tax obligations to bring into the tax system and create a level playing field them into good order. for all. This is significant timing – from 2024 there will be new obligations on self-employed people,

DECEMBER 2021 - Edition 32

NEW TAXI TAX CHECKS company working with other taxi companies, as What can taxi operators do to help mitigate the impact of these tax checks on well as local authorities. We have a solution that could limit any risk by help both you and your their business? For operators who have self-employed taxi or PHV drivers working for them, the risks from these new measures are obvious. If any of their drivers fail to complete a tax check successfully and have a period when they are unable to drive whilst they bring their tax affairs into good order, this could directly hit the revenue stream of that business, even if the delay is relatively short. Many firms have hundreds, or even thousands of drivers, and they are often unaware of the tax status of their drivers because of the selfemployed business model. April next year could therefore see significant disruption for operators, drivers, and customers alike. Operators can help to mitigate this impact by making sure their drivers know what they need to do and when they need to do it. We have asked HMRC to communicate with all stakeholders and let operators have material to provide to drivers about these checks, as operators will probably be the first point of contact for drivers, and well placed to provide information to drivers about these changes, if they are supplied with this material by HMRC. Operators can be integral to the successful introduction of conditionality. They have a vested interest in making sure these changes are introduced smoothly, as their revenue streams will be directly impacted if drivers do not follow the procedures correctly.

team pass these checks, including in-built onboarding with HMRC and the ability to file without needing an HMRC login. Once we've identified if any of your team would in theory fail – we can help them take further steps to ensure they pass these checks, far in advance of April – including referral to trusted advisers if needed. This helps ensure operators have minimal interruptions to their service. We know that these checks come at a tough time for taxi drivers and the industry, and that the last thing anyone wants is for more obstacles put in the way of drivers, but with advance planning and by not leaving things to the last minute, we hope that the industry can quickly integrate these checks into business as usual. Jonathan Yeomans is Head of Tax at untied, the UK's award-winning personal tax app - designed specially to help sole traders to get on top of their taxes. untied is the only end to end app that enables users to link their bank accounts, makes tax sense of their transactions and files directly to HMRC. In February 2021, untied became the first end to end app recognised by HMRC for Making Tax Digital for Income Tax and enabled one of its users to make the first-ever open banking-enabled tax payment to HMRC. untied is regulated by the FCA, supervised by the Chartered Institute of Taxation and recognised by HMRC. Find out more about untied.

There are also some organisations who help operators get drivers checked in bulk, in advance of these checks. Making sure that drivers are already correctly registered for tax and helping to register those who are not, as well as helping to assist with any enquiries about bringing their tax affairs back into good order. For example, untied is a UK based tax software

DECEMBER 2021 - Edition 32

TAX AND ACCOUNTING

HERE’S WHY ALL CABBIES SHOULD FILE THEIR RETURNS FOR 2020/2021…

EVEN IF THEY TRADED NOTHING! We have a few clients who didn't trade, or the amount of trade was so insignificant in the year 2021 they were thinking of not filing a return. By either phoning HMRC or heading to the Gov.UK website you may be forgiven for thinking that you don't need to complete a return. But should you do so anyway? If you are running an ongoing business it is most definitely in your interest to file a return. Many London Cabbies, for example, left their cabs on the drive for most of, if not all of, the fiscal year to April 2021, and only resumed driving once the risk of Covid was understood, and they had been double jabbed, mitigating their risk.

forums, as the text below shows.

ARTICLE BY: JASON SHORT

SHORT AND SONS ACCOUNTANTS

“Good Afternoon, I’ve received a panicked email from a client who’s received a letter from HMRC regarding potential repayment of the SEISS grants. She was a sole trader in 2018-2019 but went limited in April 2019 so no self-employed income was included in her 19/20 tax return, only the dividends she’d taken from the Limited company…”

In the above text, the client was self-employed in the year to April 2019. They then claimed the SEISS grants during 2020. The problem here is the 3 SEISS There are two reasons we believe you should file a grants were claimable in April, August and return for the year 2021. December 2020, but the 2020 tax return might not have been filed until the 31 January 2021. I believe Firstly, if there are no self-employment pages included in the 2021 return (or the 2022 return for the questions when claiming the grants were clear, that matter) you will almost certainly receive a letter and the client should have realised that they were not entitled to them, however, it is possible in this from HMRC requesting repayment of the SEISS instance that the client misunderstood that being a grants within 30 days. This has already started to Director of a Ltd company is not the same as selfhappen when people have filed their own returns, and DECEMBER 2021 - Edition 32 20instances of this are appearing in accounting employment.

TAX AND ACCOUNTING Ultimately, when the return was then filed, and because there weren't Self-Employment pages included in the return, it has triggered an automatic letter requesting the repayment of the SEISS grants. Grants are often requested to be paid back within 30 days.

made much money during the pandemic (or any money for that matter) means you may be thinking you should save some money on accounting fees and tell HMRC you never traded. Apart from the reasons outlined above you should also consider the number of expenses you have incurred during the year. To use the taxi business example, often This predicament, while slightly different to someone not filing a return because of moth-balling insurance can be £1,500 plus, Tax Disc can be £500, their business during the pandemic, shows that the Meter £160, Plate £110, as well as finance costs which can be in excess of £4,000 in the first year of trigger was the fact that there were no selfownership on a new £60,000 LEVC. employment pages included in the return. All these costs, plus accounting fees can be claimed LOSSES as business expenses, and even if your turnover was very low, or even £0, you should consider the There is also another and more obvious reason to fact that carrying these losses forward, back or file your return... Losses! Most small businesses using them against other income received during keep their overheads low, however, businesses such as running a modern electric taxi can be many that year would lower your tax liability and save you money far in excess of accounting fees. thousands per year. The fact that you have not

DECEMBER 2021 - Edition 32

GUEST FEATURE

In recent months, Reuters, NPR, The New York Times, and Bloomberg all published articles headlining observations about ride -hail price surges and driver shortages. It was even reported • that service prices increased by 40%. It’s an issue that is felt at large by customers and operators, especially as we step into Q4, the • time of year with the highest demand for ride-hail and taxi services. So how can this challenge • present an opportunity for innovation?

Ride demand is back up, which the driver shortage can't match. As ride-hail and taxi operators navigate the repercussions of COVID, they feel the pain point of driver shortages as rides are more expensive and wait times are longer for their customers. This naturally turns them away, while hampering their ride frequencies at large. •

two biggest operators in the town were reporting evening driver resources were 50% down from pre-pandemic levels North-West Taxi Proprietors reported they lost about 30% of drivers during COVID Glasgow Taxis told BBC Scotland it had lost a third of its drivers during COVID Aberdeen Taxis claims the city has lost 60% of its drivers during the pandemic.

When the pandemic hit in 2020, many drivers stopped driving because they were not getting enough trips. Fast-forward to today, and there are more passenger orders than there are drivers to match the demand. You would think that on a basic supply and demand premise, more drivers would start driving again and the market would go back to normal. However, this is not the case.

Blackpool Council's licensing During the COVID pandemic, 22service reported that the drivers reacted to the sudden

DECEMBER 2021 -Image Edition 32 credit: Mileus

JURAJ ATLAS — MILEUS CEO drop in ride requests by switching to other means of work, which provided more lucrative and stable income, such as on-demand delivery services. As pandemic restrictions lifted, ride demand from passengers has picked up. Now, we’re heading into Q4 — the busiest season for operators — and drivers still aren’t moving back. "As restrictions have been lifted, starting in April, the amount of journeys has returned in abundance, with people going about their daily lives once again. However, the balance of available work to available drivers is currently in dire need of more drivers,” said James Bradley, Director of Alpha Taxis in Liverpool.

commutes, tackling driver unavailability, increased prices, and long wait times. But, how is intermodality just applied to just the 40% opportunity loss resulting from driver unavailability and passengers’ non-converted inquiries? When the passenger searches for a ride and there’s no driver available or they cancel their search — only then will they be given an intermodal option. This ensures that intermodality does not cannibalise your regular business operations: it simply adds extra opportunity.

For the operator, this increases ride frequency, allows for better fleet utilisation, and cuts back deadheading From a ride-hail and taxi operator perspective, kilometres — those made on routers with no what are the consequences? passengers. Pre-pandemic, about 80% of passenger orders would end up in a ride. However, today operators are stuck with fewer drivers on the road resulting in a 20% drop in ride orders.

For the passenger, intermodality helps ensure there is a driver available, provides a cheaper option if the first offer was too expensive, and decreases the pick-up time — ultimately making them stick to your service.

Why? A driver shortage naturally results in increased There are three key ways intermodality unlocks wait time, driver unavailability, and higher prices, which improved service availability and conversion rates. decreases operators’ ability to convert orders into Waiting time: let’s use it to get somewhere. rides. Drivers are usually willing to wait 10-15 minutes to pick That 40% gap of non-converting orders can be broken up a passenger, particularly if the pickup location is down to 10% driver unavailability and 30% nonnear so they don’t incur deadheading kilometres. converting orders or cancellations due to the customer’s dissatisfaction with the higher price or wait Let’s say the closest driver is 15 minutes away, and that represents about a 5-7 kilometres distance. time. These non-converting orders have two negative implications to the business. Firstly, it’s a lost revenue opportunity. Secondly, it pushes customers away to direct competitors or another mode of transportation. This pain point is an opportunity for innovation and margin for improvement. So let’s lean into it; how can we increase the current standing 60% order-to-ride conversion rate?

Intermodality — a solution to move your business forward. Intermodality allows ride-hail and taxi operators to integrate public transportation into your passengers’

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The passenger can wait in one place for the whole 15 minutes as the driver moves closer to them. Or, within the ride-hail app, the commuter can have a guided intermodal journey, which gets them closer to the driver via public transport, effectively cutting down the 15 minute wait time. Intermodality helps your customer get to their destination sooner since public transport in city centres, particularly during peak commute hours, can beat traffic congestion. These two wins will help make your customers happy and keep them returning to your service.

GUEST FEATURE Lower ride cost: higher ride frequency. When a customer opens their app to see the cost is 40% more than what they’re used to, on top of extended pickup times, they’re naturally more likely to decline. But, if the service operator is able to turn that around and offer cheaper rides, passengers are more likely to tap confirm. It’s basic economics 101; lower service prices result in higher customer use frequency. Additionally, they will tap into a new market segment of more price-sensitive passengers who would have otherwise considered a full taxi commute too expensive.

And how does intermodality boost your business in numbers? If you offer an intermodal ride to each user for whose search a driver is not available or who cancels their search, what impact will it have on your business? Well, taking into consideration the what-if scenario that an intermodal ride will be available for 75% of such searches and that 25% of customers accept this intermodal ride offer (keeping it realistic — but chances are it will be much higher than that), the numbers speak for themselves.

The intermodal service will bring 13% more order-toride conversions, driven by lower AOV and increased So by integrating public transportation into passengers’ ride frequency. This translates to 7% more revenue. journeys, operators increase ride frequency, customer A brave new world of innovation. satisfaction, and widen market reach. Like for all businesses, a time of challenge is a time to Order stacking: next-level flexibility and think out of the box and innovate ways to adapt and matching. evolve, and come out better. Society and technology would not be what it is today if this wasn’t true. In A driver’s ability to accept their next ride while on a wake of the pandemic, we’ve already seen operators journey is dependant on: and drivers alike shift into on-demand deliveries with • Location: the driver is within a reasonable great success. So why can’t integrating public transport distance of the requested pickup into your service be the next shift for your business? •

Time: the driver is close to completing their current journey.

If the average ride-hail or taxi journey is, let’s say ten minutes, the driver can only consider picking up the next passenger during the last few minutes of that journey. This ensures the next passenger doesn’t wait too long and the driver minimises deadheading kilometres. This is where intermodality steps in and unlocks more flexible driver-passenger matching by enabling significantly more pickup points. As the customer moves towards the driver by using public transport, any of the let’s say metro stops can be the taxi pickup points. This gives dispatching algorithms a higher probability to match efficiently, so drivers stack orders with more flexibility. It’s simple; more flexible driver-passenger matching equals higher service availability.

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GUEST FEATURE

Image credit: Taxi Plus

After a covid hiatus last year, the Institute of Licensing's (IoL) National Training Conference (NTC) was back on with a vengeance for 2021. Both delegates and exhibitors were overjoyed to be back at an in-person event. And considering the past 20 months, no one can blame them! As one delegate said, the NTC is the ‘pinnacle’ event in the licensing calendar and was sorely missed last year. There were a host of great sessions on over the conference. TaxiPlus attended as many as possible, to try and get a sense of the industry as it builds back post-pandemic. And it became clear early on that a key theme was emerging.

The New Normal Over the past 20 months, the industry has suffered. The pandemic has had a huge impact. But as we

recover from the worst of it, positives are beginning to emerge. The biggest theme over the three days has been that no one is planning to go back to how things were done before. Licensed industries have had a reputation for being stuck in their ways. But the pandemic has forced a seismic shift in the way that they work. People are trying to adopt a more agile way of working with the help of technology. Microsoft Teams has been the saviour of many licensing departments. People are beginning to realise that they can work far more flexibly than ever before. This rapid adoption of technology has also made people question how they do things in other ways. As one speaker said, the pandemic has created ‘a willingness to learn and escape pedantic thinking’. Whether this is the start of a new normal or just the

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GUEST FEATURE residual effect of overcoming the worst of the pandemic remains to be seen. But there seems to be a real desire to challenge the status quo in the world of licensing.

Updates from the DfT One of the most well-attended sessions was the ‘National Standards and Best Practice Update’ from the Department for Transport (DfT). The DfT delegation was there to provide an update on best practice for the Statutory taxi and private hire (PH) vehicle standards. The ‘statutory’ guidance that isn’t actually mandatory, but licensing authorities have a ‘legal duty to have regard’ to. They announced they are ‘imminently’ due to release new best practice guidance to replace the outdated 2010 document. The sector has significantly changed since that was released and the new guidance is going to reflect that. Unsurprisingly, they didn’t announce timescales. What they did say is, consultation on the draft guidance will be available in the coming months for trade reps to submit their views. However, it was pointed out by multiple speakers at the conference that this guidance has been ‘imminent’ since 2014. And according to one speaker, the draft consultation was supposed to be published in time for the NTC2021. But it remains to be seen when this will actually be published. We’ll be sure to dive into the guidance in more detail when it’s finally released. Ultimately, there was nothing brought up that people in the industry don’t already know. Questions were answered with an expected

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GUEST FEATURE government patter. This led to a distinct sense of dissatisfaction from most of the delegates attending the session.

What does the future hold?

which seems to be a shortage of drivers. Steve Wright highlighted the industry is at least 160,000 drivers down thanks to the pandemic.

The knock-on effect of this is increased unrest on the streets In the short term, drivers could after closing time, a potential increase of drunk drivers and be in for a profitable season. Reps from hospitality said since vulnerable people being unable Boris Johnson announced there to travel freely. A couple of delegates suggested that would be no lockdown this winter, they have seen a spike in removing knowledge tests for Christmas bookings. This bodes private hire drivers could be well for the taxi and private hire useful. In licensing authorities trade. Hospitality is a key feeder where they have temporarily waived knowledge tests, they industry for taxis so if they’re have seen a huge increase in preparing for a strong festive driver numbers. period, drivers should benefit. In most cases, the pandemic has led to a desire for licensing authorities and trade reps to work closer together for the benefit of the industry. As John Garforth (Oldham MBC Licensing) noted in his talk alongside Steve Wright (LPHCA), before the pandemic, it would have been a rare sight to see trade reps and licensing officers running a session together. Closer partnerships between the two are going to be essential for a successful recovery postpandemic.

If you weren’t able to attend the NTC 2021 in person, don’t worry. TaxiPlus have put together a special edition of the ‘What Time You On ‘Til?’ podcast, covering the key talking points, If these partnerships can be and some of the strengthened, it can only be a behind-thegood thing for the industry scenes action as going forwards. There are still a well. TaxiPlus help deliver online pre-licensing solutions. number of challenges that need You can drop them an email to hello@taxiplus.co.uk to be dealt with. The biggest of to learn more.

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DECEMBER 2021 - Edition 32

ELECTRIC TAXIS

Image credit: LEVC

As we come to the end of another year, despite a new virus variant ‘Omicron’ causing headlines, there remains some optimism for an end to the worst consequences of the COVID19 pandemic. The effects of the COVID pandemic still prevail across urban mobility, with driver shortages and trying to keep up with the increased festive period demand, mobility providers continue to recover and adapt to changes.

In late October London expanded the ULEZ over 140 miles between the north and south circular roads and as we see in the new year expect 2022 to see many more CAZ’s going live to add

to those already rolled out across the UK.

Faced with daily penalty charges for entering CAZ’s with non-compliant vehicles, and a looming ban on new fossil fuel car sales in 2030, many of you may well now be calculating when to switch to EVs. On top of this, in the last 3 months we’ve seen fuel shortages, causing long queues at petrol stations, and these have since been replaced by record pump prices.

So that’s how it feels? There was an irony in the short-lived fuel shortage - as ICE vehicle owners desperate for fuel, experienced a form of ‘range anxiety’ - a

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ELECTRIC TAXIS phenomenon normally familiar to EV The cost: If you still rely on fossil drivers with limited range and a lack of fuel available places to charge. To set an existing cost benchmark, As fuel dried up at petrol stations, ICE filling an existing diesel car capable of drivers experienced similar feelings to c.50mpg to cover a daily mileage of EV drivers low on range and searched 220 miles at £1.50 per litre for diesel for alternatives, which resulted in a would be c.£25.00. massive 1,500% spike in web searches Averaging 220 miles a day, 6 days a for electric cars. week over 48 weeks, with fuel at Expect this to be a trend that will £150.00 per week is around £7,200.00 continue. As more and more drivers per year. become conscious of EV’s everevolving market penetration, viability Home-charging: How much does it cost? and total cost of ownership (TCO) benefits. A major advantage of EV ownership is Almost every major car manufacturer the ability to charge while parked - and is now committed to electrifying their especially when parked at home and product portfolio and incorporating over-night. numerous new electric car ranges This also allows making use of Time-Ofwith improved range capabilities and Use (TOU) energy tariffs which are at more affordable prices. mainly designed for EV owners to Are you able to charge an EV at charge up at low peak times of energy demand. home - or not? The suitability of EVs for daily public services such as taxi and private hire continue to provide challenges for those faced with the prospect of having to shift to electric. Especially professional drivers - who will need to top up their batteries before, and/or during each shift. Some fleets and drivers may be more dependent on either the workplace or public chargers outside of their home and this exposes an inequality in running costs. Let’s look at some hypothetical examples on home charging for the purposes of this article:

These afford really low prices of c.£0.05p per kWh - during the low peak period which is typically between 1230am to 5am.

A new opportunity to minimise running costs The shift to electric brings with it a great opportunity to minimise running costs. It is especially suited to most commuter drivers and some business drivers. The 4–5-hour low tariff (TOU) window allows topping up around 100 miles of range using a 7kW supply and charger for a cost of just c.£1.50 - most urban drivers won’t even need to do this

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ELECTRIC TAXIS every night… it might only be a weekly or fortnightly event. It’s not surprising most EV drivers would never think of going back to ICE, even before factoring in zero road tax, no CAZ charges and minimal maintenance costs.

This means around £7.80 per day for an EV Cab capable of over 200 miles electric range, this is achieved by charging at home and combining a lowrate time-of-use (TOU) tariff - together with an equal amount of peak time electricity to fulfil most daily needs of over 200 miles.

Daily professional requirements

No private home parking?

Taxi / PH drivers do not have the luxury of charging ad hoc but need a nightly extended charge which is longer than this cheap tariff window allows for making over 200 miles range available - and required - for the next day.

Of course, this is all well and good if you have private off-road parking and charging available, but if not then things are not quite so straightforward in practice.

Notwithstanding the fact that LEVC hackney cabs require the back-up use of a fossil-fuel rangeextender to achieve over 200 miles on a single charge, it is wise to plan ahead as it is no foregone conclusion that range extenders will continue to go unregulated within clean air zones. For professional drivers with vehicles capable of doing a complete shift on a full battery, charging is something intrinsic and required to be replicated every night. So, doubling the charging TOU time is far more likely - as most of you will cover more than 200 miles in a day. This means stepping outside of the TOU low-peak tariffs available, to complete each charge for the day ahead.

Two EV drivers with identical EVs - One can charge at home and the other cannot. To account for two energy users requiring the use of their vehicles for business each day, both use the same vehicle with same size battery and efficiency and both drives exactly the same number of miles per year. The one with access to a domestic ChargePoint will pay - based on the mixed energy tariffs previously outlined and averaging 220 miles a day, 6 days a week over 48 weeks energy @ £7.80 per day £46.80 per week or £2,246 per year. And this is achieved with the convenience of charging at home, while sleeping.

The one without private home parking has three So, we have to factor in a peak time tariff of c.£0.20p options: per kWh (using a fast home smart charger Fast Street Charging - This is dependent on charging at 7kWh) for an additional 4-½ hours charger locations and their availability. which would mean an increased tariff period and cost of c.£6.30 to be added to the low peak TOU The charging speed is generally the same as tariff total of £1.50 in order to have 200 miles range home @7kWh. Costing c.£0.25p per kWh (and available for the next day. assuming they can find an available, convenient street charger 6 nights a week!). This would work out costing around £16.00 to top up enough for over a 200-mile shift - averaging 220 miles a day 6 days a week over 48 weeks with daily energy @ £16.00 - that’s £96.00 per week or £4,608 per year… So over double the cost of private home charging but still significantly less than diesel costs.

Image credit: DYNAMO

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ELECTRIC TAXIS This option is currently undependable, due to the low numbers of street chargers from borough to borough, and whether they are convenient to use. They will likely require an App to access also. Street Charging infrastructure is about to hugely expand up to 2030 and beyond... (more on that in another article!). Rapid DC Public Charging - This is the more likely option to fast street charging as it is far more established and growing exponentially now. But also means downloading a large assortment of ChargePoint operator (CPO) apps to gain access to some of the networks (some of these may also require subscriptions). Planning will be important - to locate where suitable rapid chargers are convenient to needs - also availability is a concern at those times needed - due to the uptake of EVs. Typical costs are c.£0.40p per /kWh. The speed of rapid DC chargers varies from 50kWh up to 350kWh with approximately 85% of the public network still being 50kWh - many EVs are still only capable of rapid charging up to 100kWh. 50kWh chargers typically add around 100 miles range in around 35 minutes. However, this is dependent on the size of the EV battery. To fully charge an EV battery from below 20% up to 100% takes longer than expected. Batteries are designed to charge with a ramp-up in speed from zero range to 20% charge - and a rampdown in speed from 80% to full.

miles range is also over double that of fast street charging. Again - averaging 220 miles a day 6 days a week over 48 weeks with daily energy @£0.40p per kWh c.£25.00 - that’s £150.00 per week or £7,200 per year. So public rapid energy networks (used entirely) are virtually equivalent to an average diesel cost but with added tax and CAZ benefits. For Taxi and PH drivers, out-of-home charging means speed is so important where the EV cannot just be parked overnight. So, this is the most workable option when using public infrastructure. However, it is still a less than ideal solution to be relied on when using on a daily business basis because of increased EV demand and charging reliability issues. Workplace / Depot Charging. Fleets with depots and sufficient parking space, means workplace charging is an advantage. It allows more flexible charging options with the ability to plan a strategy to maximise both the vehicle usage and minimise energy costs. Charging at work allows fleets to create innovative business models using a mixture of fast 7-22kWh AC chargers and / or rapid DC. Being in control and privately managing the infrastructure also means chargers can be reserved and also makes it possible to double-shift EVs to maximise vehicle investments, profitability and overall ROI. Image credit: LEVC

So, there’s a charging ‘sweet-spot’ in the middle - and this where optimum charging speed is attained - the time taken is variable as it is relevant to each vehicle's battery size. Rapid public DC infrastructure will also mean factoring in dwell-time to charge each day, with added cost implications. The cost to rapidly charge an EV over 200

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ELECTRIC TAXIS Additionally, decentralised renewable energy such as solar, with connected off-grid power generation using either alternative fuel as a back-up - such as used vegetable oil (UVO) or hydrogen fuel cells harnessed by battery storage, effectively means

resourced to turn what might seem major challenges into opportunities. The risks of making the wrong decisions are huge and impact the bottom-line profits of your company and even your position in the market vs competitors. We provide independent EV consultancy, encompassing end-end solutions and EV ChargePoint and connected renewable installations to help your business THRIVE during the transition to EVs. Electric Vehicles and supporting infrastructure if properly planned are a more cost effective, green, and intelligent option… Can you afford not to investigate further?

Image credit: LEVC

depots can become their own energy utility. Battery storage implementation can also greatly reduce overall building energy costs to add to the equation. As fossil fuel and petrol stations are no longer a de facto requirement, a number of complex strategies are evolving around energy and mobility offering exciting opportunities to explore. These involve vehicle choices, operations, energy deployment, charging infrastructure, connected renewable decentralised energy deployment, together with various attractive financed packages. The need for companies to plan implementation of their own charging infrastructure is now here. The strategies to implement this can create new, green and profitable business models and present some fleets and drivers with excellent opportunities to capitalise on the transition and decarbonisation of both power and mobility.

Image credit: LEVC

Enabling a versatile, structured transition to EVs requires new thinking and fleet owners and managers need to be well-informed, trained, and

Image credit: DYNAMO

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ELECTRIC TAXIS

Image credit: LEVC

Manchester taxi drivers are to net a total of £20,000 in grants and contributions to entice them to make the move to greener electric taxis. The London Electric Vehicle Company (LEVC) are encouraging drivers in Manchester to make the switch to EV after selling more than 5,500 LEVC TX taxis globally. The TX is widely seen as the world’s most advanced electric taxi. With the support of a Transport for Greater Manchester Clean Air (TFGM) grant of £10,000 and Plug-in Taxi Grant (PITG) of £7,500, combined with an LEVC deposit contribution of £2,500, drivers and operators can now save up to £20,000 off its price.

Joerg Hofmann, LEVC CEO, said: “With our range of revolutionary electrically driven vehicles - the TX black taxi and VN5 light commercial vehicle - LEVC is providing the optimum solution for drivers and businesses looking to transition to green mobility. We greatly welcome Manchester’s support for clean vehicles, which will enable many taxi and van drivers to make the move to a new vehicle.

“LEVC looks forward to playing a vital role in helping the city improve air quality and achieve its goals Outlining further details of its accelerated carbon through its Clean Air Zone. And with similar schemes reduction plan at the recent Green Summit held in opening soon in other major cities such as Salford Quays at the Lowry, Mayor of Greater Birmingham, Bristol and Leeds, LEVC’s state-of-theManchester, Andy Burnham, has committed more art, clean and flexible vehicles – which offer no range than £120m in government funding to support drivers anxiety – can help cities across the UK transition to and operators in the move to cleaner vehicles, ahead greener, more efficient mobility." of the introduction of its new Clean Air Zone in May 2022.

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UK TAXI NEWS

NORTHERN IRELAND TAXI DRIVERS SET FOR 7.6% FARE INCREASE TO BATTLE DRIVER SHORTAGES Image credit: Karl Black

Infrastructure Minister Nichola Mallon has decided to bring forward a range of measures to address a shortage of taxi drivers in Northern Ireland.

Commerce Ltd as well as a wide range of other businesses and individuals.

The Department will now seek to ensure that the The Minister will legislate for a 7.6% increase in the Regulations are operational, as soon as possible. maximum taxi fare and will introduce a support Minister Mallon said: “I thank package for new drivers. everyone who provided their views to the recent WOULD YOU consultation on this SUPPORT A issue. I have carefully 7.6% INCREASE considered those WHERE YOU responses and while I acknowledge the range WORK? of views presented on the way forward, I do think The consultation was issued to over 6,000 taxi intervention is needed now to address the shortage drivers and to representative groups across of drivers especially as we enter one of the busiest Northern Ireland. The Department also engaged directly with the Consumer Council to ascertain the periods of the year for the industry. potential impact on members of the public. "Taking account of all the views expressed and the recent rise of fuel and other running costs I The consultation generated 196 responses. These therefore plan to implement a 7.6% increase in the included responses submitted by the Consumer maximum fare, as soon as possible and I will initiate Council, the Inclusive Mobility and Transport a further fare review in Spring 2022, based on Advisory Committee (IMTAC), the larger taxi The new measures follow a targeted 4 week consultation launched on 17 September 2021, detailing the Minister’s proposal for a 7.6% increase in the maximum taxi fare tariff across Northern Ireland. This followed the Minister’s announcement on 10 September of a Taxi Action Plan which proposed further support for the taxi industry.

companies and the Belfast Chamber of Trade and

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UK TAXI NEWS updated data. Subject to the legislative processes, and in order to provide additional support to the industry, I will also provide for a free taximeter test for drivers and operators who apply between the operational date and the end of February 2022.” Confirming support for drivers wishing to enter the industry, the Minister said: “To help build capacity in the industry, I will provide financial support to cover the DVA fees for new drivers who successfully obtain their taxi driver and vehicle licences from April 21 to March 22. This will mean a saving of £372 for every new driver who successfully passes all the necessary tests to become part of the taxi industry. Completion of this process ensures that customers continue to be protected through the provision of a safe taxi service.

Upon hearing the plans Northern Ireland taxi drivers quickly called on the Transport Minister to ‘revisit the fare review’ and instead ‘impose a minimum fare’ to protect the drivers. A spokesperson from industry campaign group, Taxi Drivers Matter, said via social media: “We at NI Taxi Drivers completely condemn the Minister's decision to award a 7.6% on the maximum fare tariff for taxis. “It has been widely reported in the media that this is as incentive for new drivers to join the industry but, not only is it not incentive, it's not even close to helping the country's current taxi drivers sustain the rise in the cost of living.

“We strongly urge the minister to revisit the fare review and to impose a minimum fare to protect the "I have listened to all the views expressed and drivers from greedy depot owners who constantly recognise the significant challenges that taxi-drivers subject drivers to longer hours to meet their weekly have encountered over the last two years dealing with bills and also implore her to set fares that will allow a the Covid19 pandemic and now rising costs. I hope driver to make a fair living wage to avoid working men these measures and those already introduced will and women falling into poverty.” assist the industry in the time ahead.”

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UK TAXI NEWS

Ride-hailing firm Bolt has introduced a major change Drivers are said to have asked Bolt for more flexibility on its minicab app platform by allowing drivers to set over pricing, with many currently choosing to accept their own prices and passengers to select their driver. and then reject trips if a more profitable journey becomes available elsewhere, leading to a poor The moves, which are a first for any UK ride hailing experience for customers. operator, are designed to make the Bolt platform more attractive to drivers by giving them additional control of their business. The changes are also aimed at addressing national concerns around driver shortages which have been leading to longer wait times, cancellations and surge pricing across all platforms.

Drivers will be able to set their own prices within a range to reflect their own preferences and local market conditions. Alternatively, they can continue to use Bolt’s dynamic standard pricing. It is hoped the move will lead to a better functioning marketplace, with fewer cancellations, and better stability of earnings over a weekly period.

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UK TAXI NEWS Bolt will be testing the new features across several cities starting ahead of a planned UK wide roll out before Christmas. Bolt has over 65,000 drivers and 4million customers in the UK across 14 cities having launched in London in 2019. Sam Raciti, Bolt’s Regional Manager for Western Europe, said: “Drivers have consistently asked us for the ability to set their own prices so they can ensure a journey is profitable enough before it's accepted. By making these changes we hope to reduce waiting times on the Bolt app and have fewer driver cancellations so customers can get to their destination quickly and safely following increased demand in recent weeks. We have built our business around giving drivers total flexibility. These changes are part of that philosophy and will create a better functioning marketplace.” The move has however angered private hire driver representatives who argue allowing drivers to set their own fares could undermine regulatory regime and other essential consumer protections. The App Drivers & Couriers Union (ADCU) called on the operator to raise the minimum price per mile to £2 and also raised concerns over regulation requirements that asks operators to provide a price quote before a journey begins.

whilst out on the road. “If Bolt want to proceed with this plan, they must set a price floor of £2.00 per mile and allow drivers to set prices higher that this if they wish. “In London, regulation requires that operators like Bolt provide a price quote before a journey commences. The purpose of this regulation is to give customers certainty and security of a simple pricing model. This initiative undermines the regulatory regime and essential consumer protections.“ Despite the claims London’s taxi and private hire regulator Transport for London (TfL) said they have “no powers to regulate private hire fares”. TfL were asked whether the change in fare pricing had been accepted by the regulator, and also whether other taxi and minicab operators can now offer similar pricing models to the public via their apps. A TfL spokesperson responded to TaxiPoint saying: “TfL has no powers to regulate private hire fares. Our role is to ensure London private hire operators comply with the Private Hire Act and associated obligations.”

James Farrar, ADCU General Secretary, said: “Bolt’s new pricing model is a desperate attempt to avoid accountability for worker rights for their workforce by creating a false pretence of driver control in price setting. “In reality, Bolt’s work allocation algorithm will quickly profile and prioritise drivers who are prepared to accept ever lower prices for their work allowing Bolt to expand market share at worker's expense. The ADCU will continue its ongoing court action against Bolt for worker status. “This programme also raises serious safety concerns associated with a substantial workload increase as drivers must now assess and bid on work offered

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UK TAXI NEWS

Image credit: Ofer Segal

Image credit: LEVC

E.V. Motors, a leader in electric car charging technologies, and GenCell, an Israeli hydrogen and ammonia to power technology provider, have agreed to develop the next generation of electric vehicle (EV) charging solutions to power hybrid offgrid EV charging stations.

The two companies have agreed to cooperate on the development of a joint project integrating GenCell's alkaline fuel cells together with E.V. Motors' electric vehicle charging technologies to enable autonomous off-grid hybrid electric vehicle charging stations that eliminate the need for fossil fuel backup generators. The project will provide demonstration sites that are expected to attract interest from e-mobility companies worldwide.

Cheltenham Borough Council (CBC) has launched a 4week consultation asking all licensed taxi drivers for their opinion on a unique scheme to better promote availability of licensed wheelchair accessible vehicles (WAVs) in the region. The Council are aiming to harness technology in the most effective way, and to promote and roll out a ride hailing app to help wheelchair users access hackney carriage WAVs more easily.

The consultation follows the council's recent announcement that it is reviewing its WAV policy for hackney carriages in line with meeting its climate zero carbon ambition by 2030. Cllr Martin Horwood, member for regulatory services, said: “We’re aware that people with a range of disabilities can struggle to access the wheelchair accessible taxis we have when they need them. “The idea of a ride-hailing app is an exciting idea that I want to see taken up in Cheltenham.”

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CHARITY

IT’S ON! POSTPONED ‘CABBIES DO KILIMANJARO’ TRIP SCHEDULED FOR FEBRUARY 2022 When the fundraising group ‘Cabbies Do Kilimanjaro’ had to postpone their plans to climb Mount Meru and Mount Kilimanjaro in October 2020, little did they know that their challenge would be on hold for so long. Finally with a green light to fly to Tanzania, Cabbies Do Kilimanjaro, a fundraising group of London Cab drivers will be flying to Africa in February 2022. Cabbies Daren and John and their cameraman Tim who climbed Kilimanjaro to raise money for the Taxi Charity for Military Veterans in 2019 will be joined in 2022 by SIX fellow black cab drivers. Wanting to push themselves even more this time, Daren, John, and Tim are attempting to climb

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Africa’s two largest mountains. They will start by climbing 4,562 metre Mount Meru and will then be joined by the rest of the cab drivers at the foot of 5,895 metre Mount Kilimanjaro to climb the world’s highest free-standing mountain together, in a huge back-to-back challenge to raise money for special needs and disadvantaged children. The team recently went for two day’s training in the Peak District under the guidance of Tim King. The Cabbies Do Kilimanjaro challenge hopes to raise £7,500 for the London Taxi Drivers’ Charity for Children and £2,500 for a children’s community project in Tanzania.

GLOBAL NEWS On Wednesday 24 November, the Brussels Appeal Court issued a ruling that meant a 2015 cease & desist order issued against UberPop, which allowed private individuals to provide passenger transportation service, also applies to mobility services provided by professional LVC drivers. As a result 2,000 Brussels drivers with an LVC licence are no longer able to work on the Uber app. In response to the ruling, Laurent Slits, Head of Belgium at Uber, said: “This decision was made based on outdated regulations written in a time before smartphones, which the government has promised and failed to reform for the last seven years.”

Image credit: GETT

Black cab and corporate transportation company Gett will go public as part of a merger with Rosecliff Acquisition in a deal valued at $1billion, the firms announced. Rosecliff Acquisition, a special purpose acquisition company, and GT Gettaxi Limited, better known as Gett announced that they have entered into a definitive business combination agreement. The newly combined company will operate as Gett and trade on the Nasdaq under the symbol “GETT”. The merger will provide up to $253million in gross proceeds from Rosecliff’s trust account, with an additional $30million in gross proceeds from a fully committed common equity PIPE from Rosecliff’s sponsors and existing Gett shareholders.

DECEMBER 2021 - Edition 32

GLOBAL NEWS

Taxi Butler have unveiled their Global Industry Trends Report, a comprehensive paper that highlights dynamic trends in the taxi industry across the globe. This first edition of the report, ‘A 3year impact analysis on the taxi market: before, during and after COVID-19’, presents data on how the taxi industry was impacted throughout the pandemic.

pandemic as ONE, we wanted to understand how it impacted our industry, how to get out of this situation together and what we can expect in the near future. We are positive about the future of the industry, and according to the numbers, the B2B taxi market should be back on track somewhere around Q2 2022, if all goes well.”

The present findings also look at the toughest period for the industry, With the easing of travel bans in notably from February 2020, the most areas of the world from last ‘normal’ month before COVIDDecember 2020 and throughout 2021, the paper highlights that the 19 restrictions, to April 2020, when restrictions were in full effect, overall increasing trend of taxi where the industry saw a 91.35% bookings is encouraging for the industry and will likely continue. The collapse in bookings. findings put forward that global B2B The report also analyses taxi (Business-to-Business) taxi bookings booking trends in four major will almost double (+72.69%) by Q2 regions: the UK & Ireland, North 2022, as compared to January 2021, America, Australia & New Zealand, signifying that the industry will be and Europe. The UK and Ireland saw back on track and almost fully the most significant decline, from recovered from the COVID-19 February to April 2020, losing pandemic, (providing that there are 96.48% of their B2B taxi bookings, no new COVID-19 restrictions in the followed by Europe at 94.83%, future). Australia and New Zealand at Speaking about the report, the Co- 85.30%, and North America at founder of Taxi Butler, Steven Blom, 81.21%. said: “Having partnered through this

DECEMBER 2021 - Edition 32

WORLD TAXI FEATURE

Welcome to part six of our ongoing series of global taxis. We continue looking at the world’s most distinctive looking cabs outside of the iconic black taxi we see and love in most big UK cities. Budget Direct have released a new series of

illustrated posters, showcasing different taxis from every country. We continue to run through the A-Z of the 57 most iconic taxis. In this edition we look at Mexico, Morocco, Netherlands, Nigeria, Oman and Pakistan.

DECEMBER 2021 - Edition 32

WORLD TAXI FEATURE

DECEMBER 2021 - Edition 32

TRAINING

ACCOUNTANTS

FINANCE

INSURANCE We have been arranging specialist insurance since 1989, and have become a one stop shop for all your taxi insurance needs. We offer exclusive rates from a panel of leading insurers, tailored to your exact needs. Click here for a quote or more information.

At mymoneycomparision.com, we have a proven track record of working with taxi insurance specialists. We help you source and compare cheap taxi insurance cover, which suits your business needs. Get your quote by visiting: www.mymoneycomparison.com/taxi-insurance

DECEMBER 2021 - Edition 32

BUY, RENT OR REPAIR A TAXI

APPS

COMMS

Challenger provide fleet management trackers, cameras and integrated software to access vehicle location, record driver behaviour, optimise your route planning and take advantage of fuel cost savings. Challenger provides business mobiles backed up with award-winning support, and with its market leading app you can keep your drivers safe with lone worker protection.

DECEMBER 2021 - Edition 32

CLAIMS

EMISSIONS SYSTEMS HJS HJS are Europe's leading manufacturers of emission reduction systems for commercial vehicles. Retrofit your taxi to meet EURO VI standards. For more information visit the website by clicking here or phone 01344 566050.

MEMBERSHIP

CARD PAYMENTS

TAXI SCREENS

The FixiCover Driver Shield is an in-car partition that separates drivers from their passengers and serves as a sneeze guard. Find out more here.

DECEMBER 2021 - Edition 32