TaxiPoint November 2021 Edition 31 by TaxiPoint

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Edition 31 | NOVEMBER 2021

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LTN COVERAGE ISSUES? | FINANCE OPEN CHARGING EXTRAS? | HOLLER | JURAJ ATLAS TAXI TAX CHECKS |TAXI LITTER FINES

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EDITORIAL

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The TaxiPoint Team

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TAXI TARIFFS

Cabbies are DIVIDED over whether licensed taxi drivers should be able to charge extras on top of the metered fare. As demand for both taxis and private hire vehicle (PHV) services increases, the contentious option to charge customers more than base rate fares to guarantee them a vehicle, splits the sector in two.

taxi ranks the passenger only ever pays the metered fare. Tariffs are already set to encourage cabbies to earn more when demand is traditionally higher at the weekends or later at night. It’s a trusted longstanding system that works for both the driver and

The PHV sector, most notably the global app operators, have used the model of ‘surge charging’ for several years when the service demand outweighs the supply of vehicles available. Being unregulated they have more flexibility to charge what they like, when they like. It’s then up to their customers to accept the price or look for alternative transport instead. But what do licensed taxis do during extreme demand? On the street and on

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TAXI TARIFFS passenger when it comes to hailing a taxi.

Away from the street, on taxi hailing apps and account platforms, it’s different. Because the price can be advertised to the passenger before the booking is confirmed, extras have been added for several years. According to a short online poll it was 50/50 as to whether licensed taxi drivers should charge for extras. This included ‘run-ins’, booking fees and priority fees, but the poll excluded airport drop-off and pick-up fees as an extra. In the 1990’s, radio circuits who held accounts with most of the big multi-million-pound companies operating would charge ‘run-in’ fees on top of the metered price to secure a taxi for its employees. It was a way of hailing the nearest taxi remotely which drivers at the time welcomed and companies were willing to use when required. The method of charging passengers the cost of the ‘runin’ has all but gone in the UK, but it is still used in other European countries to this day.

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Charity

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

TAXI TARIFFS Since the introduction of ridehailing apps in the early 2010’s ‘run-in’ fees were removed in a bid to compete with cut-price fares being offered by newcomers like Uber. Instead, taxi companies were forced to offer fixed price fares BELOW the estimated meter cost to win account work. Fast forward to post-pandemic and demand for licensed taxi services has returned. Black cab booking apps have seen a surge in demand. Gett recorded over 17,000 uncovered jobs in one week as taxi drivers struggled to cover demand across the capital. It is also worth noting that fixed price fares have now been dropped.

And here lies the big point of contention because obviously some passengers who regularly use the black cab service and see themselves as loyal customers are unwilling to pay more to prioritise themselves a cab. It’s also worth remembering that many customers ARE willing to pay a booking fee.

Image credit: LEVC

The same goes for taxi drivers working on the platform too. Some are comfortable receiving the extra payment, some less so.

Could app firms offer the CHOICE of paying a booking fee to ease the worries of those concerned? For example, those customers that are not willing to pay the extra will enter the platform as normal in FREE NOW introduced reward search for a driver willing to schemes to entice taxi drivers to accept the job. If after a few cover more work on their platform seconds there are no drivers too. However, with street work around, maybe that’s when the busy, the option of paying no app passenger could be prompted to fees and running no dead-miles to encourage a taxi driver as a the pick-up destination could priority? mean operators may continue to The street hail and metered struggle for driver coverage pricing should never change. It’s a digitally. regulated price based on the So how can taxi operators ensure those that need a black cab, get a black cab? In recent years Gett have introduced a ‘Tech’ fee, which is essentially a booking fee, to be paid on top of the metered fare during times of high demand. The fee, which is capped up to £13, allows customers and drivers the option to pay or receive the fee for a priority booking.

IMMEDIATE booking of a service that protects both the driver and passenger. However, what happens BEFORE the passenger enters the taxi and how that passenger locates the cab is still very much up for discussion.

ARTICLE BY: PERRY RICHARDSON TAXIPOINT FOUNDER

CONTACT@TAXI-POINT.CO.UK

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TAXI ACCESS AND COVERAGE

LTN COVERAGE

Around four in five taxi drivers are put off looking for passengers or accepting ehail bookings in areas that have controversial Low Traffic Neighbourhood (LTN) restrictions.

HAVE TAXI DRIVERS STOPPED SERVICING LTN AREAS AND HOW DOES THAT AFFECT THE COMMUNITY?

In a short survey we conducted online, 82% of cabbies said they steered clear of LTN restrictions for fear of being fined, getting stuck in heavy traffic and a lack of knowledge circumnavigating the complex new networks.

In London, taxi drivers singled out LTNs in Islington, Hackney and the City of London as the areas they

are most likely to give a wide berth. At a time when taxi customers are facing shortages of available black cabs in general, the number of taxis choosing not to service areas leaves the most vulnerable in the community with slim transport options. One taxi driver said accepting app bookings, despite being relatively close as the crow flies, is no longer viable. The driver said: “The issue with accepting e -hails in LTNs is difficult. Much like why a driver on Oxford Street wouldn't accept one technically 0.2 miles away on Dean Street. By the time you get there, likelihood will be the passenger won't be.”

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TAXI ACCESS AND COVERAGE Another example can be seen in Islington where a booking request handed to a cab driver only a few hundred yards away on Duncan Terrace can take the driver EIGHT minutes to arrive at the pick-up on a clear run.

Image credit: Google Maps

Another cab driver said: “Our knowledge becomes redundant as there’s only one way in and out of certain places. Just sitting in traffic is not good for driver or punter.” It’s not just the time it takes to get to passengers that pushes cab drivers away. The complex new road networks have left emergency services, delivery drivers and other commercial vehicles lost trying to find ways to access their desired destination. Taxi if you make an error. Especially with dreadful drivers are sadly no different. Many drivers nosignage”. longer look for passengers requiring their services in Another added: “Simply not worth the hassle and LTNs due to the risk of being fined. risk of a fine. So sad to have to think like this.” According to one cabbie it’s “not worth the £65 fine

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TAXI ACCESS AND COVERAGE Highly trained black cabbies are also now relying on their passengers to help navigate through the new maze of roads. A taxi driver said: “Obviously I take customers there if asked, but frequently rely on their local knowledge to get close by due to road closures, horrendous signage etc. “My heart sinks when hailed and asked to go Islington or Hackney.” The impact on local communities struggling to hail or book a taxi has far reaching consequences. Wheelchair users and residents with mobility issues rely on taxis to transport them to work or hospital appointments. The option of walking or cycling is not a reality for everyone within such dense and diverse LTN communities. Brian Leveson, a resident in the Tottenham area and surrounded by two LTN schemes, relies on black cabs to transport his severely disabled 16-year-old son to hospital appointments and vital social activities. He has become increasingly frustrated at the lack of coverage available to him.

“For trips with my son, in his wheelchair, I Leveson said: “For my son, I can ONLY use London's frequently cannot get a cab to pick him up after his fleet of black cabs as they are accessible, covid-safe "club" after school on a Thursday. This means he and fully accessible to wheelchair users. and his carer are waiting up to half an hour. I've had “For my daughter, because of the caring needs of the same on a Saturday when I take him to the my son, I use 'black cabs' instead of 'the taxi of mum special needs cycling in Finsbury Park. One Saturday and dad', because my son cannot be left alone, so in September I waited an hour! I was using the taxi we are caring at night, not ferrying our daughter card. about. “As I have already explained, my son requires 24/7 “Recently, I have found it more difficult booking care as he is paraplegic and has seizures. I can't be cabs for both my daughter and my son. driving a car and giving him the care and attention, he needs at the same time. It would be infinitely more dangerous than using a mobile whilst driving! “I would also say that the introduction of the Stoke Newington LTN has added at least five pounds to our Great Ormond Street Hospital journeys.”

ARTICLE BY: PERRY RICHARDSON TAXIPOINT FOUNDER

12Leveson relies on taxis Brian

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TAXI AND PHV SHORTAGES

Across the UK peak-time demand for taxi and private hire services has returned at the flick of the switch. However, a shortage of drivers, and in some cases vehicles, has meant a significant proportion of that demand is not being met. The problem has caused mixed opinions within the industry when it comes to predicting whether the issue will persist in the long or short-term. There has also been a number of solutions discussed online and at forums over the past few weeks. So where are the shortages, what has caused them and what are the solutions? First up let’s differentiate between taxi and Private Hire Vehicle (PHV) sectors. When talking about London’s licensed Hackney taxis there is more of an issue with a shortage of vehicles rather than drivers.

The number of licensed taxi vehicles in the capital has dropped by nearly 25% since pandemic restrictions

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TAXI AND PHV SHORTAGES first hit in March 2020. Currently there are just 13,966 representatives have partly blamed the ‘woeful’ cabs licensed in the capital compared to 18,341 support offered by Scottish Government and the local licensed in April 2020. authority during the pandemic. A short-term recovery solution for fleets and individual licensed cabbies is to simply keep investing in new EV taxis to keep up with the number of drivers returning to the trade. Gaining finance to buy cabs has been hard due to the downturn caused by the pandemic, but with demand higher than ever before lenders are now lending again.

Throughout the pandemic Unite Glasgow Cab Section union asked both Glasgow City Council and Long-term there has always been the argument that Scottish more needs to be done to entice new applicants on to Government for financial support to help drivers through the period of the ‘Knowledge of London’ (KOL), to replace what is low work levels. an ageing pool of taxi drivers in the capital. The KOL takes roughly three years to complete so there is no The Scottish Government were able to offer eligible quick fix when it comes to recruiting new licensed cabbies two grants both worth £1,500 each during the drivers into the industry, but a well-thought-out plan pandemic. This wasn’t enough to stop drivers retiring must now be put in place. from the industry early or seeking different employment instead. In Scotland, and in particular Glasgow, shortages of drivers are seen as the issue during peak-times. Union

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TAXI AND PHV SHORTAGES A Unite Glasgow Cab Section spokesperson responded on social media to the issue of driver shortages, saying: “Glasgow City Council and Scottish Government are partly to blame for the driver shortage. “Pandemic support for the trade was woeful. A start would be to clear ranks of parked cars so drivers can serve the public.”

PHV drivers is now harder than ever. The topic of recruitment was discussed at the recent LPHCA Road Show and most operators were in agreement that prices need to increase to in turn allow for better paid drivers. However, raising the prices too much will push potential passengers away into the taxi industry where prices remain regulated.

They went on to add: “Drivers were working in a poorly paid Discussing the issue on LinkedIn, industry pre-pandemic. Many have David James, Director of Personal had enough. Class Travel, also raised potential “It is a legacy of over-provision of issues surrounding experienced Private Hire Vehicles (PHVs), pure drivers leaving the UK during the pandemic and not returning. and simple. You reap what you sow.”

James said: “This is a similar question to the HGV driver In the PHV sector there is also a shortage in many ways, and some shortage of drivers and the reasons for this are similar across of the same reasons. Just as with HGV drivers, a large number of taxi the UK. PHV drivers left the and private hire drivers were from industry to discover similar paid jobs in delivery, logistics and other the EU (probably not as many as sectors. The risks, both monetary HGV though) and returned home and safety, are now far less in their during the pandemic, and haven't new jobs so there must be new big come back. incentives to entice these lapsed “Many left the industry altogether drivers back. Many ex-PHV drivers as there simply wasn't enough no longer have the pressure of work out there to survive. Some of footing large vehicle expenses and them retired completely, others do not have to deal with the public went to work in supermarkets etc, late at night, and it will take some and have become used to a more convincing for them to return. secure wage and have decided to stay. Plenty simply don't feel it is There’s also the added safe enough to go back to taxi complication that operators are work. competing against the highly advertised (and now well paid) recruitment for HGV drivers. Recruiting new drivers to become

“Councils aren't helping either. Many charge ridiculous amounts for licences, and lots feel it simply

“Many left the industry altogether as there simply wasn't enough work out there to survive. Some of them retired completely, others went to work in supermarkets etc, and have become used to a more secure wage and have decided to stay…”

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TAXI AND PHV SHORTAGES isn't worth while anymore with the excessive costs and stringent conditions laid down by some.

“The issue we face, is through the pandemic there was not the influx of new drivers entering the trade, taking their tests and gaining their badges. The local councils need to work with and help fleets to help bring the new blood through as quickly as possible.

“Uber are also a huge factor. For years they have driven down fares and income to a level that is not sustainable for many drivers. In some areas it has become a work for Uber or don't get any work “This doesn’t need to be a long term challenge. If situation, because of the market share they have, and Fleets are proactive work and collaborate with the many refuse to work for Uber because of their right people it can be over come in the short term.” treatment of drivers and the low rates (without What should be done next? surges).” In the same discussion, started by Mileus Founder and CEO Juraj Atlas, it was thought that the problem could be made short-term if companies act now. Michael Agius, Commercial Director of National Tech Services, said: “This will be a short term issue as long as the private hire and taxi companies do not just sit back.

For this to be a short-term issue the taxi industry will need support with their fleets. If the Government and Local Authorities want to ‘build back greener’ and take more privately owned vehicles off the road, they need to invest in the taxi industry fleet. Bigger grants and chargepoint incentives should be at the heart of a short-term fix. Taxi drivers and fleet owners need the short-term ability and confidence to start buying new taxis again.

“Taxi drivers have left the industry to work in different sectors such as retail and courier. The industry needs to work together to offer an attractive Government and Local Authorities need to start listening to the trade or face long-term coverage package for drivers to return such as driver benefit issues. and reduced commissions rates.

In the PHV sector the issue of recruitment and retaining drivers focuses mainly around pay and driver safely. Driver pay has been squeezed for a number of years prior to the pandemic meaning delivery jobs are now seen as more attractive. PHV Operators appear to widely agree that all prices must James Deville, Sales Director as Curtis Gabriel, added: rise to attract drivers back. But if the cost of journeys “It doesn’t need to be a Long Term issue. I’m increases, will customers be willing to pay it? currently working with many Private Hire and Taxi Fleets across the UK, bringing drivers back to work in It’s a complex situation, and personally, I don’t the industry. think the PHV industry “Many drivers left fleets through the pandemic to go driver shortage will be a and work for supermarkets, delivery companies or short-term fix in the UK. found an alternative industry. An element also took early retirement. Fleets that are being proactive to let drivers know there is plenty of work back out there ARTICLE BY: and money to be made are successfully bringing .PERRY RICHARDSON drivers back to their fleets. I have a number of case TAXIPOINT FOUNDER studies of fleets we have worked with to show this. CONTACT@TAXI-POINT.CO.UK “Taxi drivers have to spend thousands of pounds to have the right vehicle and all the relevant insurances in place, plus renewal of PCO licence which is costly. If operators action the above they should start to see an increase in new drivers and driver retention.”

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FINANCE Image credit: LEVC

OPEN FOR BUSINESS FINANCE FOR TAXI DRIVERS SPARKS INTO LIFE AGAIN Lenders ARE opening the cheque book to taxi drivers strength of the business and the overall future and fleets once more after a ‘challenging’ pandemic potential (and subject to credit approval) lenders period says finance experts. understand difficulties that the industry has faced.” A shortage of taxi vehicles, especially in London, has left the industry playing catch up after the purchasing of new cabs was put on hold whilst work levels plummeted during the peak of the coronavirus pandemic.

Taxi drivers who relied on Government support packages, like the Self-Employment Income Support Scheme (SEISS), can now also seek finance packages with confidence once again. A lack of taxi driven revenue put many banks off lending during the In London there are currently just under 14,000 taxis period, however confidence has now returned. licensed, of which roughly a third are electric taxis. An Ethos spokesperson said: “Drivers who claimed That number has dropped massively since the start SEISS and other grants during the pandemic can now of the pandemic when it stood at 18,504 vehicles in find finance. However, the SEISS cannot be shown as April 2020. their only source of income for a prolonged period of time. Recovery was hampered by the industry’s buying power and ability to find finance, however according “Having taken advantage of government support to respected taxi finance brokers, Ethos Finance, the available for businesses/sole traders during the mood within the banking industry has now changed. pandemic doesn’t deflect from the ability to get finance, proof of work as always will still be required A spokesperson from Ethos Finance said: “Yes and will need to be demonstrated within the lenders are lending money to fleets and individual application.” taxi drivers again. Although funding during the pandemic was initially challenging, based on the

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NEW TAXI TAX CHECKS

With the new taxi tax check policy coming into play in April 2022, drivers and operators will have to meet HMRC requirements before being issued with a new licence to operate. But what are the finer details of the new legislation? Well firstly, only those who are renewing their licence will be required to complete the new tax checks, those entering as newly licensed drivers will not be required to.

been licensed anywhere in the last 12-months, they will be considered a renewal licensee, therefore required to complete the checks.

As part of the tax checks, drivers and operators will be required to inform HMRC of how long they have been working within the taxi and/or private hire industry. Jamie Horton, HMRC Assistant Director for Policy & Strategy, said this was to help create a picture of the industry as a whole and help monitor the policy.

WHAT CONSTITUTES A NEW DRIVER?

But this will also allow HMRC to get a clearer So, what constitutes a ‘new’ picture of a driver or operator’s history within the driver? According to officials trade and whether they have been tax registered it’s anyone who has not held throughout that period. a licence for the last 12Another issue raised was that any driver or months. One issue raised at an operator who has not registered themselves for Institute of Licensing talk on the tax previously, would simply take a year out of the topic was whether a driver could industry before returning as a new driver, avoid having to complete the tax checks by therefore no longer needing to complete the tax switching licensing authorities in an attempt to be checks and remain undetected. A driver or considered a ‘new’ driver. The answer to that was operator who has avoided being tax registered for, a resounding no! The 12-month rule will come into let’s say, 10 years, will probably most likely choose play regardless of a driver being a first-time the option of a year out over the possibility of a licensee with a licensing authority. If a driver has back dated tax bill. This approach is certainly a

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NEW TAXI TAX CHECKS cause for concern when tackling those who choose to avoid paying tax. As stated by Mr Horton, one of the purposes of the new tax checks is to “find the hidden”. But this approach isn’t watertight.

licence. Once everything matches up, and an applicant meets all the requirements of a licensing body, he/she will be issued with a renewal licence.

Licensing authorities will not have access to any applicant’s tax history, all they simply need to Now we move onto what details know is that they are tax registered. HMRC have confirmed HMRC will require to complete the checks and what information that they will not disclose any other information to any licensing will be given to licensing authority in relation to any authorities. driver’s application. Well, the process will be very simple and fast. Applicants will be What about those who are applying for more than one type expected to answer a few straightforward questions such as of licence? what type of licence they are For those applicants who wish to applying for, how many years ago renew more than one type of they first got a licence and the licence, let’s say a driver who length of the licence they are wishes to hold a hackney carriage applying for. licence and a private hire driver’s They will also be asked if in their licence, or an operator who also wants to hold a private hire previous tax returns, they included income earned from the driver’s licence, they will be type of licence they are applying expected to complete a tax check for every single licence they are for. This is where “Red Flags” could be highlighted by HMRC. If applying for. It’s ONE CHECK PER a person has held a licence for 5 LICENCE TYPE. years, yet there is no record of earnings submitted on a tax return, this could be a cause of concern.

How long will an applicant have to complete the tax checks?

A Tax Check Code, given when a check is WHAT IF I For those who have been open complete will last up HAVE MULTIPLE and transparent and paid tax as to 120 days, so an LICENCES? they are legally required, this applicant should have whole process should be easy sufficient time to enough to complete. On complete the process Image credit: LEVC completion, the applicant will be before applying for a given a Tax Check Code which will renewal licence. be needed by any licensing It has been noted that if an authority completing a renewal

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NEW TAXI TAX CHECKS applicant is unable to access the tax check forms online for 5 days in a row due to a fault at HMRC’s end, i.e. a system being down, then they will not be required to complete the checks and will still be granted a renewal licence. This being said, HMRC have stressed that it is extremely unlikely that they would have an issue with their systems for 5 days running, but they have put that caveat in just in case. All in all it’s believed the introduction of this new policy should be straight-forward and simple for most, and shouldn’t be a stumbling block for those who have played by the rules. The process is to provide a “level playing field” for those working in the industry. HMRC have said it is “NOT AN ENQUIRY PROCESS”!

MICHAEL MURPHY

TAXIPOINT EDTIOR

CONTACT@TAXI-POINT.CO.UK

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FEATURE

“PUTTING POWER BACK INTO THE HANDS OF THE FIRMS AND THE USER” Holler taxi is the brainchild of the Managing Director Kevin Leftwich, who first came up with the concept over 6 years ago. According to Kevin, initially the idea was met with a not so enthusiastic reception, as firms were busy with their own local regular customer base. Fast forward a few years, with Uber now in the UK and making a dent in the number of fares to the original local taxi firms, especially from the student market, the taxi firms were approached again with the Holler concept and this time it was received with great interest.

• “Holler fully integrates with the main taxi dispatch systems, so once linked in, taxi firms don’t have to anymore admin’ work, with increased revenue. • “Holler doesn’t dictate the fare charges to the company, the company has the fare charges set up their end, so it automatically works out the fare they’re charging and displays to the user.

How Holler works for private hire and taxi firms We asked Holler what they think makes them so different from the current apps for taxi firms and private hire cars. Here’s what they said: • “First and foremost Holler is an aggregator app, it shows the choice available to the user in one convenient app, taking fares digitally on behalf of the drivers/firms.

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FEATURE • “Holler does not have its own drivers or licence, this is all about connecting fares with the taxi firms and private hires in the area in one handy app, giving the user maximum choice and availability and connecting them with local professional companies & drivers. Doing this whilst also not bringing anymore drivers into the area as competition.

well-established companies like West Quay Cars. Holler is also currently integrated with taxi booking software systems which are used by the taxi / private hire companies, including icabbi, Gazoop and Sherlock, this gives Holler a possible instant vehicle access of over 80,000 cars (as they sign up the companies using the systems).

Holler is currently only available to download and use in Southampton, but the company has plans to roll Holler say they are bringing a new revolutionary out across the South coast and then the UK shortly approach to providing this booking service to the thereafter. Holler has at least 3 more apps planned, companies and drivers, with fixed fees from only 50p which will feed the Holler vehicle network with even per £10 and a maximum fee of £2.50 for fares above more fares and potential revenue, and these are £40. planned to be launched across the UK in 2022 and 2023. The passenger experience

Zero commission with Holler

With Holler, once the user sets the journey details and selects to book a car, the app will show the user ARTICLE BY: the top 3 cheapest results in order, with their eta and MICHAEL MURPHY also show in order of eta with the fare, it’s then TAXIPOINT EDTIOR CONTACT@TAXI-POINT.CO.UK down to the user to select the fare which best suits their needs. Holler say there is no more ringing around, having to open multiple apps, or be stuck with one fare option from a single booking app. Holler has already launched in Southampton with some major players on board, including the likes of

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GUEST FEATURE

Image credit: Mileus

The largest ride-hailing company in the world acquires the largest taxi booking and dispatching technology platform in the UK, and the whole world is watching. No wonder it is – the deal of this size isn't closed every day. But this takeover might be more than an interesting industry case study. It doesn't impact only Uber and Autocab, but somehow, all of us: the whole taxi & ride-hail industry, along with the suppliers and users. So why is this acquisition worthy of our attention? And shouldn't we do more than just watch?

When Uber Acquired Autocab It's August 2020 when Uber unveils the big news: the acquisition of a UK company called Autocab, the largest supplier of booking & dispatch systems in the world that enables digitalisation for more than 1,500 taxi companies. Uber announced that the move should influence neither Autocab's iGo platform nor the apps of Autocab's customers that are built with Autocab technology.

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GUEST FEATURE However, people who order rides via the Uber More Than a Regular Taxi app in smaller UK cities will now be connected Dispatch Operator with local drivers. When you open the Uber app in Oxford, Exeter, or Plymouth, the 'Local Direct competition at the moment is unlikely. cab' feature now connects you with local taxi For Uber, the acquisition opens an companies. opportunity that offers much more than unequal (and borderline legal) competition Despite Uber's promise to stay away from with local providers. Autocab's business, the UK watchdog, Competition and Markets Authority (CMA), launched an investigation.

So What's the Problem? The 'What If' Scenario The CMA found only indirect competition between Uber and local dispatchers. However, the case was maintained under future investigation — because Uber is not just a taxi dispatch operator like any other.

According to Autocab's CEO, Safa Alkateb, instead of solely providing ride-hail services, Uber's ambition is growing to be “the Amazon of ground transportation” and joining the list of fast-growing aggregator companies, like Booking.com. So how can we expect this acquisition to unfold?

The Reasonable Scenario: Aggregation - and Monopolisation, Inevitably

As the CMA report points out, Uber can leverage Autocab's data for its own benefit, enabling it to spot market trends and Aggregated marketplaces such as Amazon opportunities to offer more efficient and more always bring positives for both customers and profitable services. suppliers, especially in the short term. More importantly, there's no guarantee in the Customers (or buyers) can expect better long term that Uber won't launch a service services, like shorter pickup times resulting with its own drivers in those smaller UK cities. from increased capacity availability. This would make Uber a direct competitor At the same time, service providers (or sellers) also for the supply capacity to the local can benefit from more job opportunities for providers who use Autocab. the drivers, higher operational efficiency Control over prices, service providers’ profits, and commission fees are powerful weapons Uber could leverage to its advantage against local providers.

through higher utilisation, or new resources for innovation.

However, over time, the aggregating platform tends to dominate over others and maximise control on the market with two key negative effects.

Be it faster pickups or cheaper rides, better service conditions will make the customers gravitate towards Uber. And local drivers will, First, striving for profit maximisation, the naturally, follow. owner of the demand – the aggregator – influences prices for the end-users, likely implementing pricing policies that include predatory pricing or price increases.

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GUEST FEATURE Second, it’s the demand owner who decides where and how the services will be provided, as well as how the fees for service providers will look.

The Cure? Transparent, Accountable, and Regulated Marketplaces

This scenario thus doesn't guarantee that the customers win. The lack of competition can condemn them to unsatisfactory taxi services resulting from too few alternative taxi options.

Banning aggregation isn't as straightforward as the monopoly ban, plus we wouldn't want to ban it fully. Still, compared to traditional companies and industries, it's more difficult to regulate new digital platforms – because they Misusing its power and position towards both are often hard to define, categorise, and they service providers and buyers to its advantage, develop very quickly. Uber can have more customers and higher But here’s a solution; new and smart ways to profits than ever before – at the expense of approach the creation of aggregated markets taxi companies. – so that such marketplaces grow open with a And once demand aggregates under the Uber reasonable level of governance that allows for fair competition among sellers. brand, traditional taxi dispatching companies are nothing more than fleet operators and In practice, this requires transforming capacity providers. Such a middleman is proprietary, closed, and exclusive platform deprived of any demand ownership, and infrastructures into accessible and nontherefore, the business valuation decreases. discriminatory. This can be done by opening software, its protocols, and non-personal data If this reminds you of earlier lines about or by providing access to the order book. unequal competition, you're right. Because after all, the two scenarios might not be that different from each other. Becoming a direct competitor or global aggregator, Uber in any case gains a large competitive advantage that puts the market under its control.

This might sound unrealistic with established aggregators, but the earlier development stages provide more space for intervention. Setting rules earlier in the game increases their application; the birth of an open marketplace requires a proactive approach through transparency, followed by agile regulation.

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GUEST FEATURE Yes, there will still be winners – owners of such global marketplaces. However, the negative effects can be limited, monopolisation prevented, and a fair trade inside such a marketplace governed.

Governance and Separation of Duties

Demand Owner and Quality Guarantee The privilege of owning demand shouldn't come without the responsibility for providing service quality and availability.

In the first place, demand owners should be motivated to avoid “cherry-picking” – focusing Just the right amount of governing regulation on the most profitable orders or geographical ensures that innovation and economic growth areas. Instead, they should get closer to the of the industry are not inhibited, but that the way public transport operates to contribute to negative externalities of a closed marketplace more equitable urban transportation systems monopoly are minimised. at large. In the taxi & ride-hailing world, governance can effectively ensure that the aggregation of taxi services will bring passengers goodquality and affordable taxi rides – just like they benefit from cheap and accessible vacancies on Booking.com.

In practice, it requires increasing taxi serviceability in cities to increase equitability. That would include serving even the demand in areas that may not be unit profitable. But instead of making capacity suppliers take the "burden" of serving these non-unit-profitable areas, the demand owners should take this In a closed marketplace environment, a burden themselves (and for instance marketplace owner tends to want to own compensate the capacity suppliers for it). Just both sides of the transaction - buyers and as they enjoy the advantages of serving the sellers. Ownership means to control, enabling profitable areas. Fair play. maximization of the owner’s interests at all times. Moreover, demand owners should guarantee and foster fairness towards and between Making each of key roles, marketplace owner, suppliers. Practically speaking, demand demand owners and supply owners owners will prefer neither suppliers who are separately accountable is one the most efficient tools to ensure fair play even within able to pay a higher commission, nor their own brand supply. an aggregated market. These separated accountabilities will guarantee fair treatment to both sides of the transaction taking place through the marketplace, sellers and buyers, as well as other stakeholders, like city residents who are highly impacted by the ride-hailing & taxi market.

The fulfilment of these demand owner duties should be monitored and controlled digitally, while any non-compliance should be penalised. This way, the needed regulation of private hire vehicles can become more flexible, fair, and granular – reflecting current situations within time windows as brief as one hour in hyper-local, small residential areas. And if that feels too utopist, think of how we mitigate a similar negative externality— pollution. The Emission Trading system makes it possible both to monitor and penalise the

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GUEST FEATURE production of greenhouse gases. Companies that aren't willing to comply with environmental regulations are charged with a fee known as carbon credits.

Areas where ‘Local Cab’ have currently launched in the UK...

So similarly, if for example, mobility service providers don’t comply with providing quality services in underserved areas, they could also be penalised with a fee.

Collaborative Supply Owner Supply owners should be accountable for minimizing their negative impacts on all stakeholders. What it means for the ridehailing & taxi industry is having a positive balance towards sustainable transportation and city liveability. A supply owner who churns out more and more cars into the streets without optimizing for their utilization does not act responsibly. To increase utilization is to be open to receiving more demand regardless of the origin. Supply owners need to open their capacity booking capabilities and allow for any demand owner transacting within the marketplace to connect and order a ride. And at the same time, they should manage the supply capacity and adjust the fleet size to the fleet utilisation so that the supply owner will provide only as many cars as can be utilised at the time. Moreover, it requires suppliers to respect limitations for the size of their driver base.

Marketplace Owner And what’s left for the marketplace owner to be accountable for? Firstly, to open the data at reasonably aggregated levels that will enable governing bodies to measure and enforce any regulation put upon the ride-hailing & taxi industry while at the same time, protecting the privacy of passengers and drivers as transacting parties.

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GUEST FEATURE And secondly, to allow any buyers (including demand And the Result? aggregatory channels) and sellers (including supply The separation of duties brings positive outcomes for aggregatory channels) to transact within the all key stakeholders: customers, individual drivers, marketplace under non-discriminatory rules. taxi operator business owners, and importantly, all Furthermore, digital tools provide us with many residents of the cities where we live. possibilities to monitor and control the fulfilment of such duties – and again, on a far more granular level Passengers can enjoy good-quality services, even in areas that aren't necessarily profitable, at an than ever before. affordable cost. At the same time, drivers and taxi operators will be able to provide services for reasonable prices with reasonable vehicle utilisation, benefiting from the fair -play market environment. And finally, everyone would benefit from the decrease of negative externalities associated with urban transportation. Regulating aggregators can be a key contribution to improving urban transportation at large. Better utilisation of fleets and better ride-hailing services can reduce the number of cars in our cities. This reduces congestion and CO2 emissions, so we'll end up with healthier and happier residents in more liveable, cleaner cities. However, it is naive to anticipate such positive development without any intervention. Changes of this range do not just happen organically. And here, our responsibility as a mobility sector to observe, analyse, and act comes again. Once we agree on the approach to regulation, plenty of new questions arise. Who should lead this regulation? How to set the regulation up so that it wouldn't be discriminatory towards any of the involved parties? And how should compliance with such regulation be controlled and enforced? Those could be some, to begin with.

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Image credit: Mileus

RUBBISH LAW

TAXI DRIVERS FACE £150 FINE IF IN THEIR VEHICLE LITTERS Taxi drivers face a fine of £150 if ANYONE in their vehicle throws litter out of their cab.

The maximum on-the-spot fine for littering and graffiti doubled from £80 to £150 in 2018. For the first time, local authorities can also use these littering penalties against vehicle owners if it can be proved litter was thrown from their car. Keeping the country’s streets clean cost local councils almost £700 million last year. Much of this litter is seen as avoidable litter, where money could be better spent in the community. Recently a private hire driver from Bolton become the first in the borough to be fined £150 for throwing litter from a car window.

CCTV footage from the early hours of Monday 4 October, showed the driver of a private hire vehicle depositing litter onto the pavement in a residential area before driving off. The footage was sent to the council's environmental enforcement team by a local resident and officers were able to identify the owner of the car using DVLA records.

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RUBBISH LAW A Penalty Charge Notice of £150 was issued to the driver at his home address in Bolton. Previously authorities had to precisely identify who threw the litter in order to issue a fine, but the recent changes in 2018 meant the registered keeper of the vehicle is now held responsible for any litter thrown from their vehicle. Bolton Council Deputy Leader, Cllr Hilary Fairclough, said: "Littering is completely unacceptable. Unfortunately, there are a minority of people who commit these thoughtless acts. “We will not hesitate in taking action against anyone caught dropping litter in our borough. “The message is clear; if you drop litter from a car or otherwise, expect to receive a fine. For the most serious offences and repeat offenders, you may find yourself in court for a more significant penalty.”

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ELECTRIC TAXIS

Image credit: LEVC

The Mayor of London recently visited the manufacturers of the iconic electric black taxi to highlight the importance of a strong green and economic recovery. Joined on the visit at the London Electric Vehicle Company’s (LEVC) state-of-the-art factory was Andy Street, Mayor of the West Midlands. Khan detailed his commitment to building bridges between London and the rest of the country by showcasing how London can help both the national pandemic recovery and the levelling up agenda. London’s ongoing investment in electric vehicles is aiming to tackle well publicised issues around air pollution and climate change. The Mayor has set a target of decarbonising the transport network and achieving a zero carbon London by 2030. LEVC has been a vital partner for London, developing and producing the capital’s first Zero Emission Capable (ZEC) black cab, with over 4,400 of LEVC’s

electric black taxis now on London’s streets. One third of all black cabs in London are now Zero Emission Capable. The Mayor announced his commitment to working with the Government, boroughs, chargepoint operators, energy providers and other key stakeholders to make sure London gets the chargepoints it needs to support the transition to zero emission transport. The visit also marked the start of his 2030 Electric Vehicle (EV) Infrastructure Strategy, due to be published in full later this year, that includes a key commitment to unlocking land owned by the Greater London Authority Group and the boroughs for EV charging.

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UK TAXI NEWS

Taxi drivers in Sheffield are calling for Sheffield City (CAZ) in Sheffield effective from September 2022. Council to allow traditional black cab drivers a chance “We the licensed driver's are asking the council to to drive cheaper saloon style cars. urgently start the consultation on Hackney Carriage A petition has been started asking the council to ‘act vehicle specification policy. We need this review immediately’ with a consultation to introduce a immediately as the CAZ policy is approved by the ‘mixed’ taxi fleet in the region. Concerns around the executive cabinet on 26 October 2021 and be minded future cost of electric taxis and the imminent to include Mix Fleet of vehicles as a serious introduction of the Sheffield Clean Air Zone (CAZ) has consideration eg leeds model. prompted the calls. “We ask every member of the Sheffield City Council, A trade spokesperson, Ibrar Hussain, created the petition and says: “At present we have approx 640 licensed hackney carriage vehicles in Sheffield, and the trend is downwards, new electric vehicles are too too expensive to buy. “As the council is about to introduce Clean Air Zone

licensing board, and executive cabinet to take immediate action. “Furthermore licensing service needs to act immediately with this consultation with the licensed vehicle Hackney Carriage owners as the stakeholders.”

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UK TAXI NEWS Image credit: Stafford Borough Council

Q R A new QR code has been rolled out across taxis in Stafford Borough to help people give feedback to the local council, which will be used to monitor whether a driver is fit-and-proper to hold a licence. A sticker with the code will be displayed inside taxi and private hire vehicles that are licensed in the borough with customers able to share comments, compliments, or complaints using their phones. The new QR code is part of changes to Stafford Borough Council’s licensing policy to implement the Department for Transport (DFT) Statutory Taxi and Private Hire vehicle standards. The aim is to have a consistent standard and better regulation of the sector. Councillor Jonathan Price, Cabinet Member for Environment, said: “We get some great feedback from customers and it’s good to hear how the trade goes that extra mile to help passengers.

“We want to make sure that passengers of taxis and private hire vehicles receive the best service, especially as one of the first experiences a visitor may have of the borough is with our licensed trade picking up customers from railway stations for example. “We have introduced a compliment, comment, complaint sticker to be displayed on the rear, side windows of each licensed vehicle which will be issued to all drivers. This contains a QR code which puts a customer through to the appropriate form for reporting purposes.” He added that the feedback would also help assess whether a driver was suitable to have a licence. The new measures were brought in following consultation with members of the local Hackney Carriage and private hire trade, Stafford and District Access Group, police, and Staffordshire County Council earlier this year.

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UK TAXI NEWS

Image credit: Addison Lee

Addison Lee has partnered with JustPark to support drivers in the transition to electric by providing them with exclusive access to off-street charging points.

Image credit: Bonnet

Last month Bonnet Electric announced an exclusive taxi drivers' trial offer, this offer gave electric taxi drivers the opportunity to try the Bonnet App free of charge. The exclusive offer credited drivers with 200 KWH of free charging that can be used at a range of on-street charging suppliers including ESB and Shell Recharge. Due to increased driver interest Bonnet will continue the free trial offer for another 4 weeks. Drivers will need to download the Bonnet App and use promo code TAXIBNT on signup to access the free trial. The trial will allow drivers access to 200 KWH of charging completely free (approx. 8 charges in an LEVC TXE) which can be used at 1,000s of chargers.

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The partnership follows Addison Lee’s announcement last month that it will transition its standard fleet to fully electric by 2023, and gives drivers access to FleetCharge – a new charging solution from JustPark that provides off-street charging locations for fleet drivers. For drivers who work with Addison Lee and do not have off-street parking available to them, JustPark will secure a parking location within a 5-minute walk of their home and install a conveniently placed charging unit. For those drivers who already have access to off-street parking, FleetCharge will be available to support the installation process at their homes. Addison Lee’s CEO, Liam Griffin, said: ‘‘Following our pledge to electrify our fleet by 2023, we know how important it is to support our partner drivers with suitable charging solutions for their vehicles.”

GLOBAL NEWS

Image credit: NYTWA

A group of taxi medallion owners in New York have gone on hunger strike in a protest against the lack of support shown by Mayor De Blasio and the Taxi & Limousine Commission. Some taxi medallion owners are in huge debts of hundreds of thousands of dollars. Pre-pandemic medallion prices were sky high, with some going for as much as $500,000. Since the pandemic hit, the value of the medallions has plummeted leaving owners in huge debts with no way of paying. Bhairavi Desai, the Executive Director of the New York Taxi Workers Alliance, said: “The City thinks it can ignore us, but they’re wrong. For thousands of drivers across New York, this is a matter of life and death.”

Following complaints about taxi drivers allegedly breaking regulations, especially when it comes to tourists, the Interior Ministry has introduced a booklet showing 12 rules that all cab drivers are legally required to obey. The booklet will be placed on all taxi stands for drivers, as well as passengers who will also have access to the list of rules in the back of all licensed taxis. One of the rules states that the meter must be started at the beginning of the trip and no passenger should be charged more than the fare on the meter or toll fee.

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GLOBAL NEWS

Skyportz, a company working alongside both Australian Federal and State Government to develop air taxi mini-airports, has announced that their first Australian infrastructure will be built at the Australian Advanced Manufacturing Centre of Excellence in Moreton Bay, Brisbane in 2023.

Skyportz CEO, Clem Newton-Brown, said: “Skyportz has been accumulating sites in Australia since 2018 and we now have over 400 property partners ready to build out a Skyportz network.”

Image credit: SKYPORTZ

ComfortDelGro taxis are no longer accepting card payments through their physical handheld Wirecard devices after the card payment company announced it will be ceasing operations this month. Passengers will still be able to pay with their card via the “Pay for Street Hail” feature offered on the ComfortDelGro taxi booking app.

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WORLD TAXI FEATURE

Welcome to part five 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 will be running through the A-Z of the 57 most iconic taxis. In this edition we look at Indonesia, Jamaica, Japan, Lebanon, Madagascar and Malaysia.

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WORLD TAXI FEATURE

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