THE RISKS AND REWARDS TAXI DRIVERS FACE
TheUK’s#1TaxiNewsSource Edition 47 | MARCH 2023 OVER4millionmagazinereadsandcounting...
TaxiPoint Chief Editor:
Perry Richardson
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Lindsey Richardson
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Hello and welcome to our March 2023 edition of TaxiPoint.
After a quiet start to the year, the taxi industry both on and off the roads is now sparking into life. TaxiPoint is continuing to report and research on everything that matters to you. In fact, here’s just a few things that make us unique to other publications in the UK taxi industry:
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We hope you enjoy this month’s offering and be lucky,
TaxiPoint Editor and Founder
2 MARCH 2023 - Edition 47 EDITORIAL
Refusing a taxi fare without a valid reason can land taxi drivers in all sorts of problems. These can range from court appearances and fines, to licensing suspensions and revocations in some cases.
In England the offence falls under section 53 of the Town and Police Clauses Act 1847. Under the act any driver who refuses or neglects without reasonable excuse to drive a passenger within the city boundaries commits an offence.
Taxi journeys that start in the controlled district but end outside of that area CAN be refused as there is no statutory duty on the driver to accept a booking outside of the controlled district.
A taxi driver can also refuse to carry passengers within a controlled district if he or she has reasonable excuse to do so. What is classed as a ‘reasonable excuse’ is a matter for a court of law to determine, but you can be sure refusing a job because it was too short would not suffice.
Licensed taxi drivers are considered public service providers, and as such, they have a legal duty to
3 MARCH 2023 - Edition 47 FEATURE
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FEATURE
provide a service to passengers unless they have a very valid reason not to do so. The Equality Act 2010 requires taxi drivers to provide services to all passengers regardless of their race, gender, age, disability, or any other characteristic that might be considered discriminatory. This means that they cannot refuse to pick up a passenger on the grounds of their protected characteristics.
However, there are some circumstances where a taxi driver may be exempt from providing a service, such as if they feel threatened or unsafe, or if the passenger is excessively drunk or disorderly.
ARTICLE BY: PERRY RICHARDSON TAXIPOINT FOUNDER AND EDITOR
THE RULE:
Section 53 of the Town Police Clauses Act 1847
Penalty on driver for refusing to drive.
‘A driver of a hackney carriage standing at any of the stands for hackney carriages appointed by the commissioners, or in any street, who refuses or neglects, without reasonable excuse, to drive such carriage to any place within the prescribed distance, or the distance to be appointed by any byelaw of the commissioners, not exceeding the prescribed distance to which he is directed to drive by the person hiring or wishing to hire such carriage, shall for every such offence be liable to a penalty not exceeding level 2 on the standard scale.’
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RENTALS, LEASEHOLD OR FREEHOLD THE RISKS AND REWARDS TAXI DRIVERS MUST FACE
There are lots of factors to consider when deciding whether to rent your taxi from a fleet, lease it from a dealer or own a cab freehold.
If you’re new to the industry, renting from a fleet is always the best option. The driver can learn the ropes and get a better gauge of earning potential without the long-term debt of dealership leasing or buying. More importantly the cabbie can see whether the job itself is for them too before committing.
Rental offers drivers a safety blanket by not being strapped up with what is now substantial debt that requires paying even when the driver is unexpectedly sick for a prolonged period. The cab is maintained and licensed meaning less hassle and often suits part-time workers dipping in and out of the job.
Once a driver has a good gauge of the revenue they can generate and are committed to the career as a cabbie, the driver will either decide to carry on renting or take the plunge buying their own.
We’ve spoken about the benefits of a rental cab, but there are some downsides too. Long-term, financially a driver is better off cutting the middleman out and buying their own vehicle. The average electric taxi costs £350 per week to rent meaning a monthly cost of around £1,400. These monthly costs actually match up pretty evenly to that of taking out a 5-year PCP lease on the same taxi, but crucially the taxi owner will have an asset at the end of the period to either sell or keep.
At this point cabbies may partexchange on a newer vehicle, but this time at a much lower monthly cost
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due to the old taxi acting as significant part of the deposit. Many cabbies like this route as it gives them the security of a newer vehicle and the warranties that come with it. The cabbie’s monthly vehicle costs can drop to half of that compared to renting at this point and there are also renewed tax benefits in the form of Capital Allowance.
For some, keeping the vehicle for the whole duration of the licensing age limit period is their preferred business model. Historically lots of cabbies chose this method for diesel cabs, but there are now more reservations due to the unknown of new electric vehicle (EV) technology entering the trade. Costs involved maintaining batteries and parts such as eRads can leave cabbies with eye watering bills. That said, owning a taxi freehold
reduces the monthly cost of running a taxi significantly to just insurance fees and general servicing totalling just a couple of hundred pounds per month. If the taxi driver can put aside the money saved each month, they could have a nice lump sum at the end of the taxi’s life span to either reinvest in a new taxi or as a pension if they have plans to retire.
There’s also the option of buying a second-hand taxi which provides lower monthly costs and an asset. However, maintaining the vehicle will cost more as the vehicle ages. There is no right or wrong answer when it comes to the taxi you drive. Over the next decade the durability of EV taxis will either be proven, or not, shaping how drivers approach the market for years to come.
MARCH 2023 Edition 47 FEATURE
There are a growing number of taxi and private hire vehicle (PHV) hailing apps on the market and that trend looks unlikely to stop. Getting drivers logged onto those apps and accepting work is vital for the growth of the service and generates the reliability required by users.
The two key factors that affect a driver’s decision to accept work centre around fees and run-ins. In this article we’ll look at the fees.
COMMISSION ON EACH JOURNEY VERSUS A SET MEMBERSHIP FEE
top of those booking fees.
The pros for a driver accepting this work is that they can pick and choose what job offers work best for them, and even work across multiple platforms due to paying no upfront costs. The downside comes if the driver is turning over a lot of app work throughout the week and the total fees payable exceed costs over £150 each week when a membership could cost £70.
Historically on radio circuits drivers have also been able to pay a set weekly or monthly fee to gain access to work. Drivers are more likely to remain loyal to the platform, work less apps at the same time and complete more jobs. The downsides can however be felt during quieter periods and if the driver is forced to take time off work.
Taxi drivers are typically charged between 1020% of the metered fare to accept bookings. They may also be subjected to card payment fees on
In a perfect world most taxi drivers would welcome a capped commission-based system. For example, if drivers reach £70 a week in paid commission, the fees
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TAXIAPPS
stop there for the rest of the week. If the cap level is set correctly, app platforms would see better coverage during peak times and higher acceptance rates.
Taxi driver Andrew Goodchild supported this idea, saying: “Percentage capped at a weekly maximum payment is the fairest way. Drivers still pay for it if they don’t do much, but if busy pay a maximum fixed fee.”
Cabbie Sheldon Roberts said: “Percentage capped is the fairest method. With a fixed price firms get the money regardless of if there is enough work for their drivers and will flood a system. They have no incentive to advertise to bring in new customers etc.
Since the launch of the LEVC TX in January 2018, LEVC have shifted over 9,000 global sales, with those vehicles travelling more than 500 million miles. Recently the Coventry based manufacturers released a new strategy which focuses heavily on becoming a leading zero-carbon mobility technology company. That news prompted thoughts around a new fully zero-carbon taxi emerging from Brewery Road in the near future and what improvements drivers would like to see from the black cab manufacturers.
YourLondonTaxi.com asked the capital’s cabbies what one thing they would change on the popular LEVC TX taxi.
The main response centred on the vehicle’s price which has risen sharply due mainly to inflation and higher interest rates on finance packages.
The other top answers given by cabbies were the need for a higher electric driving range and quicker heating systems in the cab.
Other suggestions included a better ‘hire’ light, passenger cup holders and Apple and Android Play options.
12 MARCH 2023 - Edition 47
Imagecredit:RossCampbell
There have been a lot of headlines lately about the backlash Sadiq Khan is facing over the ULEZ expansion. Tory assembly members are opposing it along with lobby groups like Fair Fuel UK, rebel MPs from his own party are talking about blocking it - and a legal challenge has been brought by the borough councils of Harrow, Hillingdon, Bexley, Bromley and Surrey County Council, claiming the move would be unlawful, as it would cause “significant social and economic harm to our residents”. Even the Government is looking at laws to stop it, with the latest news saying 1.5million people outside London could be impacted by the expansion too.
I am all for any moves or policies which help clean up London’s air,
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Imagecredit:SHERBET
but the ULEZ expansion feels like a blunt instrument with which to do so. It appears more about making money than cleaning up the air.
After all, Sadiq looked the other way for years when it came to the middle classes keeping their homes warm with highly-polluting wood burners - until he faced pressure from campaigners. Now, he’s banning wood burner installation in new builds and refurbishments needing a planning application, but it’s a pointless move - I can’t think of the last time I saw an urban newbuild featuring a wood burner. It’s the Victorian flats and houses that are the issue and any existing homes can still fit a new burner anyway.
If Sadiq is serious about air quality, he needs to be more pragmatic and less signalling. He’d do well to show more support for the electric black taxi business for one. He needs to invest more in electric charging points and their power supply across the capital, as well as doing more to support taxi drivers to acquire clean vehicles, which are getting increasingly unaffordable as their prices rise and the OLEV subsidy stays constant. Those without the dosh upfront could see the cost of a new electric black cab soar to well over £90k with the current rising interest rates. Where’s any help from the London Mayor here?
With the gap between action and intention from Sadiq on a number of policies, he should be consulting with more business leaders - not least in our industry - to get some real ‘on the ground’ feedback. Let’s see how ULEZ plays out - and how it affects his chances in the mayoral elections next year, I know our trade will be watching closely.
BRAND BLACK CAB
Our capital’s black taxi drivers are a proud and closeknit community. We are an integral part of the heritage and history of London, a tourist attraction and an icon of the capital’s streets, and we keep the city moving through the good times and the bad.
I often ponder what makes us so unique and valuable to the city, and think it all comes down to character. Someone once told me that “your smile is your
business card and your character is your trademark”, and this really resonated with me.
We provide a premium product in terms of the safe and comfortable vehicles we drive, along with an expert, reliable service with the knowledge we have of our capital. It is by leveraging these assets alongside our professionalism and charm that we make the people of London and its many visitors love and trust us.
In our trade, we don’t need more customers, because we retain most of our custom through the provision of our great service. We rarely see the same passenger twice, but operating as a well-oiled machine through our community of self-employed professionals, we all ensure each others’ continuity of business. The crux of this of course is the fact that black taxi drivers are career professionals and we’re often passionate about our vocation - our work isn’t a ‘gig’ to be done until it’s escapable, so we welcome every passenger rather than resenting them and the job we do.
I think it’s vital that we remember this as a community and that we all continue to represent 'brand black taxi’ as brilliantly as we can to ensure we continue to get the support and credibility we need well into the future.
We should all be as vocal as we can in celebrating our jobs as proud London black cab drivers.
15 MARCH 2023 - Edition 47 EXCLUSIVECOLUMN Emailcontact@taxi-point.co.uk AREYOUOURNEXTQ&APARTICIPANT?
Imagecredit:SHERBET
BRAKE IT UP!
AGGRESSIVE DRIVERS AND CYCLISTS BATTLE ON BRITAIN’S ROADS
Road safety charity IAM RoadSmart has revealed the true extent of aggression on Britain’s roads between motorists and cyclists
Of over 2,000 drivers surveyed, the majority of respondents claimed that both aggressive motorists (78 percent) and aggressive cyclists (65 percent) are a threat to their personal safety.
This comes after 1 in 12 of the 1,339 deaths on Britain’s roads in 2021 were linked to aggressive behaviour.
The report also found that potentially millions of drivers are putting themselves and other road users at risk by engaging in dangerous driving behaviours.
Aggression from both motorists and cyclists is potentially putting lives on Britain’s roads at risk, according to research conducted by the UK’s leading road safety charity, IAM RoadSmart.
Indeed, the charity’s annual Driving Safety Culture Report, which surveyed 2,010 UK motorists on driving safety attitudes and behaviour, discovered that almost two thirds of respondents believe that
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aggressive cyclists are a threat to their personal safety, while 78 percent considered people driving a motor vehicle aggressively as a threat to personal safety.
The survey also revealed that the problem is seen to be worsening on both sides of the rivalry, with six-inten (60 per cent) of those surveyed believing that aggressive cyclists are a bigger problem compared to three years ago, and 63 percent believing that aggressive motorists have become more of an issue over the same time period.
The issue of aggressive driving is also reflected in The Department for Transport’s (DfT) latest road collision statistics, which revealed that, of the 1,339 killed on Britain’s roads in 2021, 108 involved aggressive driving as a contributory factor – equating to 1 in 12 of all deaths on the road.
Demonstrating the conflict between motorists and cyclists, IAM RoadSmart’s Driving Safety Culture Report found that there was limited support for a new law would assume that the driver is always
responsible for any collision with a cyclist or pedestrian in an urban area, with 61 percent against, and only 39 percent in favour.
Neil Greig, Director of Policy and Research at IAM RoadSmart, said: “The government has introduced a range of laws in recent years in an effort to fix the daily conflicts we see between motorists and cyclists. However, if our research is anything to go by, this has largely been to no avail - with the majority of respondents still reporting aggression and conflict among road users.
“There is no quick-fix to this issue, but our research sheds light on the urgent need for the government to maintain its education campaigns on the new Highway Code, and continue to invest in safe road markings for more vulnerable road users to minimise the chance of conflict wherever possible. In the meantime, all road users, whether on two or four wheels, should exercise calmness and restraint to help us all use Britain’s roads safely.”
18 MARCH 2023 - Edition 47 FEATURE
THE EVOLUTION OF BOOKING AND DISPATCHING TAXIS
ARTICLEBY: LAURENCEDOCHERTY, HEADOFSALESAT TAXIBUTLER
FROM PEN AND PAPER TO RADIO TO SEAMLESS TECHNOLOGY
Remember when pen and paper were used to dispatch taxi bookings? The history of the taxi industry is rich and has experienced a significant transformation in the past few decades. The use of taxis has evolved from pen and paper to radio dispatching to more seamless and automated technology.
In the past, booking and dispatching a taxi took time and effort. Customers would have to call a taxi company or stand in line at a taxi stand and wait for a taxi to arrive. Dispatchers would manually assign a taxi to the customer, often resulting in long wait times. With the introduction of radio dispatching, the process became much more efficient.
Dispatchers could allocate taxis to customers, and drivers could quickly respond to requests enabling faster response times and better customer experience.
Today, the dispatching and booking of taxis have become even more efficient with seamless technologies like purpose-built dedicated taxi booking devices, automated call centres, QR code taxi booking, automated dispatch systems, push notifications, POS and inapp payments, and many more. This World Radio Day, has allowed us to acknowledge how the taxi industry has evolved, transitioning from radio-based dispatching to modern, seamless technology.
INDUSTRYFEATURE
INDUSTRYFEATURE
TRADITIONAL RADIO DISPATCH TO MORE SEAMLESS DISPATCHING SYSTEMS
Taxis became prominent worldwide in the early 20th century. The first significant innovation in the taxi industry after the taximeter in the late 1940s was the two-way radios. Radio facilitated taxis and dispatchers to communicate and serve customers more efficiently than previous methods, such as using callboxes, a special telephone at a taxi stand to contact the dispatch office.
The traditional radio dispatch involved calling a taxi company and speaking to an operator who assigned a taxi to the customer. The operator manually kept track of all the available taxis, their locations, and the customer’s destination, making it a time-consuming process and often resulting in long wait times.
With the advancement of technology, taxi company owners with a customer-centric approach embraced GPS tracking to improve their taxi service. GPS tracking also enhanced the safety of their vehicles, which could now
track the exact location of their vehicles and assign them to customers more quickly. According to the new market research report the GPS tracking device, the market is expected to reach USD 2.89 Billion by 2023 at a CAGR of 12.91% between 2017 and 2023. The next major innovation after the GPS in the taxi industry occurred in the 1980s when computer-assisted dispatching was introduced, allowing for more efficient communication between dispatchers and drivers.
The traditional radio dispatch systems are becoming increasingly obsolete as more seamless dispatching systems are developed, profoundly reshaping the current taxi service. As passengers demand better service from public transportation to keep up with their fast-paced life, the pressure on the public transportation system has increased exponentially, thus also increasing the demand for taxis worldwide. The global taxi market, which was valued at $69.18 billion in 2019, is projected to reach $120.89 billion by 2027, registering a CAGR of 12.3% from 2020 to 2027.
INDUSTRYFEATURE
BENEFITS OF MOVING TO AUTOMATED, SEAMLESS DISPATCH
Adopting a taxi dispatch solution has proved to be a game-changer in many ways:
1. Improved efficiency: Automated, seamless dispatch systems help streamline the process of dispatching taxis, reducing the time and effort required, leading to improved efficiency and cost savings for fleets
2. Better customer satisfaction with shorter wait times: Automated dispatch systems reduced wait times for customers as they can quickly and easily allocate bookings to nearby drivers via GPS. Automated dispatch systems can improve customer satisfaction by providing a more seamless and efficient experience.
3. Lower barriers to entry for new fleets: Automated dispatch systems reduce hardware installation and costs and) help to reduce the time and effort required to dispatch taxis, which can encourage new drivers and fleets to get started in their local town
4. Improved safety: Automated dispatch systems ensure drivers are aware of their routes and are tracked in real time, which helped improve safety, record-keeping and fuel efficiency.
5. Easy growth: Automated dispatch systems became more efficient for passengers and drivers, providing less dead mileage, thus, enabling easy growth.
INDUSTRYFEATURE
TODAY’S WORLD
Today, taxi fleets have adapted to new ways to facilitate their operations. As technology continues to be the driving force behind the evolution of the taxi industry, taxi companies have already moved to end-to-end dispatch solutions that improve business efficiency and perations and facilitate local passengers to book taxis through the web, app and phone.
The systems are usually cloud-based and enable customers to book a taxi through a device, a QR code, a web browser or a mobile app and dispatch it to their location.
The system also allows taxi companies to monitor their fleet in real-time, tracking the driver location, fuel consumption, driver performance, and customer feedback, allowing them to optimise their fleet and provide better customer service. Taxi booking and dispatch systems are becoming more advanced than ever, with automation driven by advanced AI making it possible to almost fully automate booking and dispatch and making it easier for customers to book a taxi and for companies to manage fleets.
As Mark Twain says, “twenty years from now, you will be more disappointed by the things you didn't do than by the ones you did”. Where do you think the industry is headed as we move with time and embrace the next big innovations that will impact the taxi industry?
ARTICLEBY: LAURENCEDOCHERTY, HEADOFSALESAT TAXIBUTLER
Hydrogen taxis are growing in numbers across Europe, but when can we expect the technology to reach UK shores?
The inconspicuous taxis are powered by hydrogen fuel cells that convert hydrogen gas into electricity to power an electric motor. Hydrogen taxis are seen as a more environmentally friendly alternative to traditional petrol or diesel-powered taxis because they emit only water vapor and no harmful pollutants.
Last month the first hydrogen-powered taxis were licensed in the German city of Hamburg. The Toyota Mirai taxis were funded by the “Taxi of the Future” project.
In Madrid there is an aim to replace 1,000 combustion engine taxis with hydrogen models by 2026 which is expected to cost more than €100million.
Bart Biebuyck, Clean Hydrogen Partnership CEO, said: “Hydrogen is the ideal fuel for taxis because of the long -range, intensive use and short recharging time.”
There has also been a move to introduce hydrogen in France too. Hype, which operates the largest fleet of hydrogen-powered taxis in the world, is growing
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rapidly with 290 vehicles, and is expanding the fleet by placing a new order with Toyota for 388 Mirai 2 vehicles
are increasing efforts to shift towards more sustainable and environmentally friendly options.
The fuel technology has proved to be safe and reliable, but the big challenge remains with the infrastructure. Without more fuelling stations covering more of the UK, it’s hard to see any spike in growth soon.
That said, the Government are still investing in hydrogen trials and research with the aim to transition to cleaner fuels.
WHERE DOES THE UK TAXI INDUSTRY STAND WITH HYDROGEN?
Green Tomato Cars were one of the first private hire operators in the world to turn to hydrogen fuel. They currently offer a fleet of 50 hydrogen powered vehicles in the capital.
The adoption of hydrogen taxis in the UK is still limited due to factors such as high costs and limited infrastructure for refuelling hydrogen. As a result, most taxis still rely on traditional fossil fuels, although there
In December 2022, Toyota began leading a consortium to develop a prototype hydrogen fuel cell-powered version of its Hilux pick-up at the company’s UK vehicle plant in Burnaston, Derbyshire.
Toyota Motor Manufacturing UK (TMUK) successfully secured UK Government funding for the project through the Advanced Propulsion Centre (APC), an organisation supporting the development of cleaner technologies and new mobility concepts.
The concept of hydrogen fuel in the taxi industry can still take off given the opportunity, but for now it remains a slow burner.
IMAGECREDIT:HYPE
ServCity, the UK’s newest autonomous mobility service research project, has begun its testing phase on the streets of London. The aim of the project is to test the latest autonomous vehicle technologies and incorporate them into a complex urban environment.
The project is jointly funded by the Government and industry. The Government’s £100m Intelligent Mobility fund is administered by the Centre for Connected and Autonomous Vehicles (CCAV) and delivered by the UK’s innovation agency, Innovate UK. Over the next three years, six partners will work together to develop a blueprint that aims to directly breakdown the barriers to deploying autonomous vehicles in the UK’s cities.
After months of development, simulation and testing on private test tracks, the ServCity project has now reached the stage where the ServCity Connected and Autonomous Vehicle (CAV) is being tested on the streets of London at the Smart Mobility Living Lab (SMLL) based in Greenwich.
Built upon a 100% electric Nissan LEAF, the ServCity CAV from October 21, will be put through its paces and tested in the heart of the capital. This project will likely set the tone and pace when it comes to autonomous vehicles and crucially, autonomous taxis in the UK.
WHAT WILL HAPPEN TO THE TAXI INDUSTRY?
This is an interesting question and answers to this will probably come sooner from cities abroad that have accelerated the move towards autonomous.
There’s no denying that autonomous vehicle technology is making progress. Whether it will reach ‘Level 5’ in the most densely populated cities without the need of a driver, the jury remains out.
In more controlled motoring environments, like on motorways or on low-speed shuttle runs, autonomy can definitely play a role in mobility. Haulage drivers and bus drivers are most likely to be more worried by
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AUTONOMOUSTAXIS
the advancement in technology.
For private hire vehicle (PHV) drivers it’s a worry too as they are viewed as the greatest expense to the business. Minicab bookings all have a predetermined pick-up and drop-off, and the route is usually generated sat-nav technology. The operator could find themselves in the position of not needing drivers in the future.
With the right financial backing, operators could flood the roads with available vehicles on every street corner and reduce the cost of travel. As we have learned with the arrival of Uber and other ride-hailing firms, price and availability are the two main reasons for a customer to consider using a PHV.
For the taxi market it gets a little more complicated. The USP of a taxi includes the advanced knowledge of a driver and the ability to pick-up off the street. An autonomous vehicle cannot offer these, unless of course, passengers accept that the journey might not be as efficient, or legislation changes around plyingfor-hire.
s and taxis are allowed to operate in the UK, how
Drivers are having to fork out a massive 20p per litre more for diesel than petrol despite there being little difference between the two fuels on the wholesale market, RAC Fuel Watch pricing analysis shows.
The wholesale price of diesel was just 6p more than petrol at the end of February (121.06p compared to 115.48p), leaving drivers of diesel vehicles having to pay 168p a litre, compared to just 148p for unleaded) and diesel at 167.49p (down 2.79p). Asda had the lowest prices with a litre of unleaded costing 144.61p (down to 2.5p) and diesel 166.09p (down 3.6p).
The RAC calculates that if diesel was being sold at a fairer rate drivers would be paying no more than around 155p per litre, which would make the cost of filling an average 55-litre family car £7 less than it is today (£85.25, compared to the current £92.40).
RAC analysis shows retailers are currently taking more than double the margin on every litre of diesel they sell – just shy of a whopping 20p –compared to the 8.5p on unleaded, in effect subsiding petrol prices by charging more for diesel.
The RAC is calling on retailers to urgently cut the price of diesel to fairer levels, following the lead of membership-only retailer Costco which this week lopped 4p off diesel at its sites across the UK, meaning it is now charging an average of 154.7p –13p less than the UK average and 11.5p less than the average at the UK’s big four supermarkets.
RAC fuel spokesman Simon Williams said: “While our data shows petrol is generally being sold at a fair price at forecourts at the moment, drivers of the country’s 12m diesel cars – as well as almost every white van driver – have every right to feel hard done by as they’re paying a huge premium for the fuel which in no way reflects its lower wholesale cost.“
28 MARCH 2023 - Edition 47 TAXIPOINTFUELREPORT
Users of ride-hailing app Uber could be facing further price increases as HMRC begin a second review into how VAT is being collected on rides.
According to The Telegraph, the tax authorities are looking into whether Uber are currently underpaying VAT since changes were made to their business model last year.
After a lengthy legal battle, Britain’s highest Court handed victory to Uber drivers for workers’ rights back in February 2021, which included the right to earn the minimum wage and holiday pay.
The landmark gig-economy judgment put pressure on HMRC to clamp down on the private hire operator. Uber had historically passed VAT liability to individual
drivers who they claimed were independent contractors, rather than workers.
In October 2022 an agreement was made between Uber and HMRC which saw the ride-hail giants pay £615million in outstanding VAT payments.
According to The Telegraph, Uber are only collecting VAT tax on the commission it takes from drivers rather than the cost of the whole journey. Drivers are charged around 25% of the total fare.
Sources from the newspaper say HMRC are reviewing whether this complies with legislation.
If Uber are forced to apply VAT on the whole booking passengers could see the cost of booking rise by a further 10%.
30 MARCH 2023 - Edition 47
UKNEWS
The Government’s Secretary of State for Transport has contacted all licensing authorities to confirm free access to the mandatory taxi and private hire (PHV) National Register for Revocations, Refusals and Suspensions (NR3S).
It was also announced that the National Anti will act as the database provider for the complex system which many authorities have already signed up to voluntarily.
The Department for Transport (DfT) published its Statutory Standards for Taxi and Private Hire Licensing back in July 2020.
and Refusals (the ‘NR3 database’) to enhance effective due diligence when making licensing decisions.
The database provides details of all taxi and private hire driver licence revocation and refusal decisions taken from 1 January 2018.
Two taxi drivers in North East Lincolnshire have had their licences revoked after roadside drug tests gave positive readings.
Both drivers were stopped by police – one on 13 December 2022 and the second on 13 January 2023.
North East Lincolnshire Council’s hackney carriage subcommittee heard both cases at Grimsby Town Hall, the first on 25 January and the second on 22 February.
Committee members voted to revoke the drivers’ licences with immediate effect.
Councillor David Hasthorpe, chair of the licensing and community protection committee, said: “We take these matters very seriously and passenger safety is our top priority. The majority of taxi drivers in our area take their job very seriously and abide by the highest of standards.”
The Secretary of State for Transport, Mark Harper, wrote in a letter to all licensing authorities: “To assist with this new mandatory requirement, I am pleased to announce that my department is covering the cost of access to the NR3S. All licensing authorities will be given access to the NR3S for free. If your authority is not consistently using the NR3S, you should review your processes to enable your authority to comply with the law when it comes into effect.”
The Transport Secretary intends to start the remaining provisions of the Act on 27 April 2023, which gives the final few authorities who do not currently have access to the NR3S time to put the appropriate processes in place.
31 MARCH 2023 - Edition 47 UKTAXINEWS
A Nottingham private hire vehicle (PHV) driver was found guilty of illegally plying-for-hire and having no insurance.
Nottingham City Council (NCC) Licensing officers prosecuted the driver and shared details of the conviction.
The driver was fined £600 and also forced to pay costs of £632.82 and a victim surcharge of £240.
The minicab driver was also handed 8 penalty points on their licence.
Imagecredit:AdurandWorthingCouncil
A bright new taxi shelter which is set to accommodate passing pollinators, as well as waiting passengers has been installed in Worthing town centre.
The new, sustainable structure has replaced the old shelter at the town's main taxi rank in Chapel Road.
Fitted with a Living Roof full of wildflowers and sedum plants, the shelter is rich in nectar to support bees, butterflies, birds and other insects and animals on their travels.
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after licensing councillors deemed the action ‘excessive’.
In December 2022, members of the Taxi Licensing SubCommittee originally requested a report to be made by the Licensing and Safety Committee to consider the introduction of six-month DVLA checks for licensed drivers. DVLA checks are done every 3 years.
Walsall currently has 1,368 licensed drivers, of which a handful of drivers have been found to have failed to inform the licensing authority of points endorsed on their DVLA licence.
Where drivers fail to inform the licensing authority of points on their DVLA licence, a warning letter is sent from the Head of Community Safety and Enforcement informing the licence holder of their breach of conditions and consequences of the breach or further breaches would result in a review of their licence.
However, on review, councillors were keen not to punish the vast majority of drivers who continue to be compliant with the current rules set in place. There were also concerns that further red-tape and costs could push drivers out to nearby Wolverhampton for cheaper and easier licensing.
Leeds City Council’s Licensing Committee is to embark on a review of vehicle condition standards for hackney and private hire vehicles, following updates to national guidance.
The review, led by a sub-committee of Leeds City Council’s Licensing Committee, will consult drivers, the public and passenger groups on potential updates to hackney and private hire vehicle condition standards in Leeds, with a specific focus on standards for wheelchair accessible vehicles.
As part of the consultation process there will be a series of meetings with the trade and passenger groups, which will include representatives for disabled, older, female
Public drop in sessions will also
scheduled to allow all interested parties to have their voices heard and influence potential updates to vehicle condition standards.
Following the public consultation and review, members of the licensing committee will recommend options to Leeds City Council’s Executive Board in response to the updated national guidance.
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be
Imagecredit:RossCampbell
what3words has taken the taxi world by storm, and today hundreds of operators have adopted the innovative tech via a range of enabled dispatching softwares.
A common barrier prohibiting seamless journeys in the taxi and private hire industry is the challenge of communicating precise pick up or drop off locations. Street addresses often won’t guide drivers to the exact desired destination and postcodes can cover large areas, posing a challenge to drivers who may not be familiar with the area.
what3words solves these problems, providing a simple way to communicate very precise locations. It has divided the world into a grid of 3 metre squares, and each square has been given a unique combination of 3 random words – a what3words address. For example, ///juices.tribe.heap is the
what3words address for one of the step-free, accessible ramp entrances at the Royal Albert Hall in London.
what3words is useful in a wide range of scenarios, from locating accessible and side entrances, to communicating locations with no street addresses at all such as beaches or sports fields. Precise location information enables swift pick-ups and drop-offs and improves customers’ booking and riding experience.
In 2021, what3words won Newcomer of the Year at the Taxi Summit Awards. They were proud to be endorsed again in 2022 as Innovation of the Year, for the impact what3words is having on driver efficiency and customer satisfaction. 2023 is shaping up to be another great year, you can check out some of their latest highlights below.
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UKTAXIBUSINESSNEWS Imagecredit:HMRC GOTNEWS?Emailcontact@taxi-point.co.uk Imagecredit:what3words
SOFTWARE-MAKER CAB9 MADE WHAT3WORDS AVAILABLE TO ALL ITS CUSTOMERS
Cab9 has expanded its partnership with what3words by making the technology available to all of its operators with web-booker and app integrations.
Tarpit Grover, Managing Director at Cab9, said: "We are thrilled to announce our integration with what3words, a cutting-edge location technology, which is revolutionising the way our customers and their passengers find their addresses. With this integration across the board, Cab9 provides a seamless and accurate pick-up experience, reducing the frustration of trying to describe a location to drivers. The potential of this integration is immense and we are excited to bring this level of convenience and efficiency to our customers."
ONE OF THE UK’S LARGEST FLEETS, BLUELINE, WENT LIVE WITH WHAT3WORDS
The Cab9 customer took immediate advantage of the software’s new feature and launched what3words in its app and web-booker. It also accepts what3words addresses given over the phone for pick-up and drop -off locations.
Tom Shanks, CFO at Blueline, said: "We’re really excited to start working with what3words. Using their technology, our passengers will now be able to use this quick and simple way to specify a precise location with a 3 word address – they can find out their own location or identify ambiguously addressed pick-up points and share them with our call handlers in order to be picked up as efficiently and safely as possible!"
OUNO HAS ADDED WHAT3WORDS TO ITS APP
The world’s first ‘invite-only’ executive riding platform accepts what3words addresses for pick-up and drop-off locations. "As a forward thinking, innovative brand, OUNO prides itself on partnering
with like-minded companies. what3words is going to be a huge part of the industry’s future and we are over the moon to be working with them," said Bobby Drewett, Co-founder, Ouno.
WHAT’S NEXT FOR WHAT3WORDS?
Increasing numbers of software dispatch systems are integrating what3words, so their customers can offer what3words location input to riders for smoother pick-ups and drop-offs. They believe that the more operators they bring on board, the more drivers and passengers can enjoy smooth, safe and efficient journeys.
Imagecredit:TaxiCharity
The Taxi Charity for Military Veterans was delighted to receive an £18,000 grant from ABF The Soldiers’ Charity to fund its programme of special trips and activities.
ABF The Soldiers’ Charity supports partner charities which improve the wellbeing of armed forces veterans, especially those who are elderly or disabled.
The £18,000 grant will go towards the Taxi Charity’s 75th anniversary events including social occasions in the UK as well as trips to Normandy, Belgium and the Netherlands for commemoration services.
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UKTAXIBUSINESSNEWS
Addison Lee has integrated location service provider PostTag into its address search tools to help pinpoint pickup and drop-off addresses more efficiently.
PostTag’s address search tools, will complement Addison Lee’s existing in-house allocation technology, to improve the performance of booking processes.
A ground-breaking new electric taxi has begun its ‘World Tour’ to allow taxi industry workers the chance to see the working vehicle in the flesh.
The new electric taxi prototype called ‘The Miner’ is designed and manufactured by fintech firm Etioca Holding. The striking taxi recently rocked up in Barcelona and Madrid as part of the ‘Etioca Road Show 2023 World Tour’.
The electric taxi stretches almost 5 meters long and contains seven passenger seats, along with a separated taxi driver's cabin. The cab is expected to have a range of up to 217 miles and could be on the streets from 2024.
It has been designed in Turin and presented in Madrid by Roberto Fiorello, current CEO of the company, and Mark Ishakov, founder and developer of Etioca in recent years.
The electric vehicle is given for use by Etioca to the licensed driver, who does not buy the vehicle, but pays for the usage of the taxi, with a cost per mile fare.
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Imagecredit:ADDISONLEE/POSTTAG
Imagecredit:ETIOCA
Imagecredit:ETIOCA
Black cab manufacturers London Electric Vehicle Company (LEVC) have announced the appointment of Felix Faure Automobiles as the company’s second dealership in France.
Part of Groupe Vulcain, one of the country’s largest dealership networks, Felix Faure Automobiles is based in Lyon and will provide complete sales and service support for both LEVC’s electric TX Taxi and VN5 Van.
As the country’s second largest economic centre, the latest appointment in Lyon increases LEVC’s European footprint further, with the region set to be the latest area to welcome both LEVC’s TX taxi and VN5 van to its streets.
With VN5 emitting less than 20g of CO2 per kilometre, LEVC’s van also qualifies for the French government’s grant scheme, the “bonus écologique” and the “prime à la conversion”.
Mobility firm Zoox have deployed the world’s first purpose-built robotaxi on open public roads with passengers.
On 11 February, Zoox conducted the first run of its employee shuttle service in Foster City, California, marking the first time in history a purpose-built autonomous robotaxi without traditional driving controls carried passengers on open public roads.
To reach the milestone, Zoox completed testing on private roads and received approval from the California Department of Motor Vehicles (DMV) to operate its robotaxi on the state’s public roads.
To date, Zoox is the only purposebuilt robotaxi permitted on California public roads that is selfcertified to the Federal Motor Vehicle Safety Standards (FMVSS).
Zoox’s ground-up design, which does not include traditional driving controls such as a steering wheel or pedals, incorporated FMVSS performance requirements directly into its vehicle and added more than 100 safety innovations not available in today’s passenger cars.
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Imagecredit:ZOOX
Ride-hailing giants Uber have announced a redesign of the Uber app which will see more personalisation and services all in one place.
The homescreen will allow users to book rides and Uber Eats deliveries more easily and with fewer taps. There’s also a new ‘Services’ tab which acts as a one stop shop to find all of the rides and delivery offerings available in the city. These services range from a nearby e-scooter to dinner, flowers, cocktails, and more.
A new ‘Activity Hub’ keeps track of past and upcoming rides and Eats orders all in one place.
The app will also save more personal details for future use. Once you tap ‘where to?’ on the homescreen, a users ‘Saved Places’ will appear. A suggested list of personalised destinations and ride types based on historical preferences, past trips, and most likely destinations will also be generated.
Uber will also share personalised recommendations for ways to plan and save in the city users are travelling around, based on how they have used Uber in the past.
Finally, users of the Uber app on iPhone will find a new way to track the progress of their ride.
The Uber app supports Live Activities and Dynamic Island, so iPhone users running iOS 16 or later can now track the live progress of a ride and receive updates like vehicle details, the latest ETA information, and trip status – all on the Lock Screen without opening the Uber app.
For iPhone 14 Pro and iPhone 14 Pro Max users, the progress of the Uber ride will also be displayed in the Dynamic Island while your iPhone is unlocked.
Ride-hailing firm Uber have partnered with Tata Motors, one of India’s leading carmakers, to bring 25,000 electric vehicles onto the platform.
The agreement is the largest EV commitment between an automaker and a ridesharing platform in India.
Tata Motors will begin deliveries of XPRES-T EVs to Uber fleet partners in a phased manner starting this month. The partnership will aid the electrification of Uber service across Delhi NCR, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru and Ahmedabad.
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Imagecredit:UBER
Image credit: UBER
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