TaxiPoint April 2022 Edition 36 by TaxiPoint

The UK’s #1 Taxi News Source Over 3.5

Edition 36 | APRIL 2022

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INSTITUTE OF LICENSING ARE YOU A RANKER? NEW GUIDANCE PERSONAL APPEARANCE AND MUCH MORE...

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APRIL 2022 - Edition 36

EDITORIAL

TaxiPoint Chief Editor: Perry Richardson TaxiPoint Editor: Michael Murphy TaxiPoint Publishing & Advertising Manager: Having emerged from ‘Kipper Season’, work levels will be gearing up across the UK. Many within the taxi industry feel that Q2 will be the point where the shackles of the last two years are finally cast free! Fuel costs are impacting on the costs of services, but many local authorities have acted fast to raise meter tariffs already. The tariff increases may also help recruit more drivers behind the wheel as very little head way has been made in this area thus far. April also sees the start of a big change in licensing within the sector; HMRC’s Tax Conditionality Checks. For the vast majority it will have no affect other than add another process to licensing renewals. However, there will be some, for whatever reason, that will have a bumpier ride. In this edition we’re delighted to have John Garforth from the Institute of Licensing join us for the first time to run through all the taxi licensing issues currently facing the industry. A big thank you to all our other contributors who share their expertise with the wider taxi community. If you’ve got an insight into the industry we want to hear it so please do get in touch.

Lindsey Richardson Visit us online at: www.taxi-point.co.uk Write to us at: contact@taxi-point.co.uk Advertising enquiries at: advertising@taxi-point.co.uk The publishers reserve the right to refuse, withdraw, amend or otherwise deal with all advertisements without explanation. All advertisers must comply with the British Code of Advertising practice. The views expressed in this publication are not necessarily those of the publishers. All written and image rights are reserved by the author as displayed. Reproduction in whole or in part without prior permission from the publisher is strictly prohibited. Copyright brand TaxiPoint 2022. Creative Common image licenses displayed where applicable.

Be lucky,

Perry Richardson TaxiPoint Chief-Editor and Founder

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TAXI SERVICE

The sad and shocking murder of Sarah Everard in London on 3 March 2021 is widely seen as a turning point when it comes to openly discussing the rooted culture of male harassment and violence against women and girls. It rightly ignited protests and calls from all sections of community for change and for men to question their own behaviours. In March a hard-hitting advertising campaign was launched around the UK asking men to do more to stop the abuse they witness and call out colleagues and friends who show harmful behaviours towards women. In a public facing role, taxi drivers can help improve women’s safety in several scenarios and some view this as a unique selling point (USP) in comparison to other modes of transport.

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TAXI SERVICE What can the taxi industry do to make women feel safer in the taxi? According to the latest Department for Transport (DfT) statistics, most taxi and private hire drivers are male. In fact, 93% of cab drivers are men. While the proportion of female drivers has increased from 2% in recent years to 7% in 2020/21, women trying to get home late at night are most likely to be taxied home by a man. It might sound simple but male cabbies must first have an understanding of what’s acceptable and what’s not when communicating with women. Given the personal nature of a taxi trip, women must be able to trust that a taxi is a safe place and driven by a fully vetted cabbie. Basic safety promises could be made to help assist women get home safely and make them less anxious of trips. Explaining the route you plan to take and waiting for lone females to enter their

homes once dropped off can help ease some concerns late at night. Women do not necessarily need to be alone to be at risk. Stepping in and challenging unwanted conversations or abuse is paramount. Also having the knowledge of where to report the incident and how to safely deal with the situation is important. Trudy Harrison, Department for Transport (DfT) Minister, spoke on the topic of safety on public transport saying: “Everyone has the right to feel safe when travelling and using public spaces and we are determined to improve the safety of our transport network. The Department is working closely with the Home Office on the crossdepartmental strategy to address Violence Against Women and Girls. “Taxi and private hire vehicle drivers are licensed by local licensing authorities who are responsible for determining the criteria that must be met in order

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TAXI SERVICE for them to decide whether a person is 'fit and During a recent meeting, Transport for London (TfL) proper' to hold a licence, including a requirement to Finance Committee board member Anurag Gupta pay regard to the need to eliminate conduct prohibited by the Equality Act 2010. “The Department will shortly consult on revised best practice guidance to assist licensing authorities in carrying out their licensing function.” It’s not just within the taxi where drivers can help. In 2020/21 there were 343,000 licensed taxi and PHV drivers in England alone. Due to the nature of the job the coverage is huge, and their locations dictated heavily by passenger destinations.

expressed concerns around women’s safety, especially late at night. Gupta was keen to stress the importance of black cabs in the capital in providing a safe mode of transport for women at night. Gupta suggested the freezing of late-night fares and ensuring night time tariffs are kept fair for both cabbie and the general public was “an important part for woman’s safety”.

Gupta added: “Black cabs are an important part of women’s safety and especially if we do have to cut bus routes because of funding impacts, my worry is that we should not drive black cabs off in the night, yet at the same time we must make sure it remains affordable because it is an important part, especially in women’s safety.” Taxi drivers are witnesses to both the good and bad Access to all areas must also be maintained to both of human behaviour on a daily basis. They can keep metered fares low and to allow the safe door literally be the eyes and ears of the communities to door service women need. As a result, it could be they work in. argued Low Traffic Neighbourhoods (LTNs) and Taxi drivers are likely to see vulnerable lone women closed roads all impact women’s safety negatively, in potentially dangerous situations whilst driving certainly when it comes to cost. around. Again, a knowledge of how to report your Proactive thinking across the sector on the topic of concerns for that individual is required. women’s safety is needed. The industry is in a What next? unique highly trusted position and that should be championed into a black cab USP. Licensing authorities and councils can play a big part in the next steps to help make taxis a viable option for all women.

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LICENSING UPHEAVAL

A High Court judge ruled in December 2021 that all • London Private Hire Vehicle (PHV) Operators must now contract directly with passengers. This is a critically important period for the industry where major changes will need to be implemented. Although • the ruling involved one operator in particular, Uber, it actually means all operators will have to make changes, and the ride-hailing app from Silicon Valley wants everyone to know that. It is now unlawful for an operator to act as an ‘agent’ between the driver and passenger, which Uber says is “contrary to long-held industry practice and to guidance issued by TfL in 2014”. Industry changes give rise to a number of issues which all operators will have to address: •

Operators will need to make necessary changes to their Terms of Business to reflect that it is them, not drivers, responsible for providing the transportation service; Whilst there has been a history of selfemployment in the taxi and PHV industry, if PHV drivers are no longer able to contract directly with riders, and they are already restricted by the regulations governing bookings of PHV which must all go through an operator, Uber told TaxiPoint, “it is difficult to see how operators such as Bolt can continue to treat drivers as independent contractors, not workers with holiday pay and a pension as Uber does”.

Provided an operator’s turnover exceeds the VAT threshold of [£85,000], operators will have to account for VAT. Uber told TaxiPoint that it will “pay VAT as required”. This is a significant change from the usual practice of drivers being the contracting party, as few individual drivers earned more than the VAT threshold meaning no VAT issue arose;

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Image credit: UBER

LICENSING UPHEAVAL Uber has confirmed to TaxiPoint that they have completed the changes to comply with the law and prices are going up across the UK as has been previously reported. The rise will vary from city to city, but Uber say they we will not provide any further details at this stage on how they have approached their pricing as this is ‘competitively sensitive’. Uber are believed to be the only operator so far to make the necessary changes to comply with the law. They are therefore keen to hold back the intricate details of their new pricing model until their competition also make the necessary changes. Following the High Court ruling it is suggested that other operators may move very soon. Sources have confirmed to TaxiPoint that TfL is currently in contact with other operators directly, requiring them to provide evidence of changes being made to their terms and conditions (plus any associated changes to

operating procedures or operating model) in order to demonstrate compliance with the judgment. Despite the case focusing on the London PHV regime, the PHV regulation in the rest of England, Wales and Northern Ireland is substantially the same, and so this should impact operators across the UK, not just London. Uber told us they have made the changes for the whole of the UK. An Uber spokesperson told TaxiPoint: “Uber has completed the changes to our business model as required by law. Other operators in London are also required to make changes to their models to comply with the relevant law."

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TAXI PAYMENTS

The coronavirus pandemic has sped up many policies that directly impact the taxi industry. Many talk about the ‘building back greener’ mantra that has accelerated the move to cleaner Zero-Emission Capable (ZEC) vehicles and there has been many a discussion around lost road space to promote cycling and walking.

only to provide customers that guaranteed service based upon their needs and expectations. Customers want ease. When approaching a taxi at a cab rank, they don’t want to doubt whether in fact they can use a form of payment that is accepted pretty much everywhere else on their night out on the way home.

One of the other policies that has so far managed to fly low under the radar is contactless card payment options used within ALL licensed taxis.

Women’s safety is rightly high on the agenda. Carrying cash alone and late at night is not safe. Making a taxi a safe option to get home, without adding risks attached During the pandemic taxi customers were urged by the to using ATMs, can only be a good thing. Government to pay using contactless to decrease the Why do some cabbies not want chance of transmission. Cash was barely seen by cabbies working over the peak of the covid pandemic mandatory card payments? and that was a similar story for most other retail Don’t get me wrong, if I had the chance of cash over a outlets and firms taking payment for services or card payment, I would take cash. There’s nothing more products. immediate and in terms of cash flow it can be vital at There are few people that can still deny a cashless some points in the year. society is becoming more and more expected. However, the taxi industry is a service industry and the While many taxi drivers do already take card choice should be with the passenger. Many will payments, the question of whether to mandate the continue to pay by cash, but the choice should be with service option is becoming increasingly important if the customer.

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TAXI PAYMENTS Certain myths around tax avoidance remain as one trade push back, but this is certainly one that can be canned with the emergence of the HMRC taxi tax checks which began on 4 April 2022. All cabbies must now be registered with HMRC to renew their tax licence. Another reason for cabbies to not want mandatory payment options is that it provides the opportunity to cherry pick their jobs. A lone woman approaching a taxi late at night wanting to travel to a destination the cabbie doesn’t really fancy, gives them a reason to ‘broom’ the job onto other cabbies further back on the rank. Passengers just wanting to get home shouldn’t need to ‘play the game’ asking multiple cab drivers to get them home safely.

choice and technology has driven the cost of taking payments down to less than 1% in some cases. There are also numerous next day payment offerings if cash

flow is tight.

Cabbies are also concerned, especially when dropping passengers in more rural locations, that the network coverage might not actually allow for a payment to be made. Occasional network failures do happen, but very rarely. Whilst it’s a pain, 24-hour helpdesks can help take the payment via a phone call too should the situation ever pop-up.

Taxi drivers will argue that the payment processing fees are high, and it takes ages to receive the money. To be fair this was a valid argument when card payment solutions first entered the industry. However, Image credit: Ross Campbell

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TAXI PAYMENTS have one. I have gone for a SumUp one seems to be the best around. “Unfortunately, you have to change with the times. The younger ones never carry cash and look at you as if you’re daft when you say cash only.” Tony Barker told TaxiPoint: “Pragmatically speaking, most of the customers who want to pay cash will pass away long before the younger ones who have grown up using card to pay for everything. All hackneys need to move with the times.” Ian Poland said: “Cash will be obsolete in ten years. Had a reader for five years now and take about 70% card payments since covid. Money goes into my bank the next day, what more do you want.”

What could be done to help the taxi industry move to a fully mandated card payment offering? The cost of the payment solution provider is the big factor for cabbies and there should be more wiggle room from licensing authorities to use the provider of their choice. For example, does the PIN pad need to be wired up directly to the meter? Not now in this digital age. Handheld devices are commonplace for most mobile retailers and services now.

Taking card payments is now a standard modern-day service through the transport network. Fulfilling passenger requirements and expectations will increase work levels over time and help compete against digital ride-hailing firms. As a rail passenger I know that I can pay by card anywhere in the UK to use their services, why should the taxi industry be any different in the 21st Century?

Those against the move to mandatorily offering card payment options mainly expressed the view that it should be taxi driver’s choice to accept or not. Cabbie Jamie Barr said: “It’s their (cabbies) choice. Why Image credit: Ross Campbell should they be forced to accept the cost of credit card machine infrastructure and the cost of transactions.”

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TAXI LICENSING

There’s never a dull moment in licensing writes John ARTICLE BY: Garforth, who is a local authority Licensing Manager and Vice Chairman of the Institute of Licensing. Here, LICENSING MANAGER John explores some current issues and gives his AND VICE CHAIRMAN opinion on emerging and current themes. You can sign up to online updates from the Institute at responsibility. Whilst this is an www.instituteoflicensing.org. interesting development which I think is a good idea it Maybe we’ll have one new year when things are a bit quieter in licensing but alas no time soon, I fear. From will be an enormous task to bring in, requiring lots of planning and preparation. I tax conditionality to clean air zones, and from cross don’t believe it’s imminent so I may have retired before border rumblings and a review of the DBS service, then! there’s lots to be involved in.

Levelling Up White Paper

Best Practice Guidance

I read with great interest recently the Government’s levelling up white paper for delivering a long-term programme of change to unlock the potential of people and places in every part of the UK. Just one small part of the programme of change that will result in future consultation is the potential proposal to reduce the number of taxi licensing authorities. This would mean that rather than every district Council being responsible for taxi licensing, it could be that unitary, combined and county councils take on this

There’s also the long-awaited best practice guidance due from the Department for Transport for taxi and private hire licensing. We are told it will be published soon, and that it will pave the way for licensing authorities to consider how they licence and is a further opportunity to review policy. Whilst not statutory guidance it is a useful publication, and the trade should consider its contents and discuss with Local Authority Officers in their local trade forums. There are also talks about a national licensing

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TAXI LICENSING database, national standards and cross border enforcement. There hangs a massive issue.

Cross Border Working The passing of the Deregulation Act in 2015 allowed cross border working outside of district via subcontracting between operators in different areas. At first it didn’t impact on local authorities much but the trend of picking off licensing authorities who may not have the standards of others or offer cheaper fees has attracted lots of interest and has seen councils who used to only licence for example a thousand vehicles, now licence upwards of ten thousand and increasing. Whilst lawful this practice is causing great concern up and down the country and is morally wrong in my view. With some licensing authorities encouraging this ‘licence shopping’ to take place by opening up testing centres around the country and having roving compliance officers going into other areas, it can only increase the angst of those authorities who are trying to do right by their residents by encouraging applicants to stay local and work to the policy, conditions and training offers of that authority. With no imminent change to the law expected, one can only hope that either the Government or the problem authorities see sense sooner rather than later.

purpose of cleaning up harmful emissions in our atmosphere with a deadline imposed alongside the direction to devise a plan. Often confused with congestion charges by the public, such schemes often impact on the private hire and hackney trades due to links to licensing policy. Whilst funding is often awarded to assist non-emission compliant vehicles to upgrade, the recent price hikes in the used car market, waiting time for newly manufactured vehicles and the fuel cost increase can only lead to the trade feeling burdened and worried about their future and the costs associated with running their business. It is important that the trade is involved in discussions at local level to ensure that local authorities understand their concerns and discussions can help to tailor future policy direction.

Tax Conditionality

I wouldn’t imagine that any reader of this publication hasn’t heard of the new tax rules in force from the 4 The Institute of Licensing has recently set up a National April this year relating to tax registration. To Taxi and Private Hire Licensing Group whose aim is to summarise, any operator or driver renewing a licence foster relationships and discuss current issues and act from the above date has to produce a nine digit code as the ‘go to’ national group from Government. With a alongside their application for a licence to be wide range of parties involved, this group has the considered. This code can be sourced through a making of a useful network of professionals to help GOV.UK account and should only be requested online steer national debate and reform. I look forward to close to the time when the licence is up for renewal as reporting back on how things develop. the code is time limited. New applicants need not source a code unless they have held a licence within Clean Air Zones the last twelve months. Licence holders must be alert Readers should be well aware that in some areas to these changes as it will impact their ability to work. across the country clean air zones are being created. Highly un-popular with the trade, these schemes, usually mandated by Government, have the sole

New National Group

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TAXI RULES

One of the big perks of the job for both taxi drivers and their passengers is the allowed use of bus lanes.

‘taxi’. ‘Permitted’ taxis are allowed access which refers to public hire black taxis and wheelchair-accessible PHVs.

Cabbies are able to whiz passengers around in a timely fashion despite facing some of the hardest congestion and traffic.

In big cities like Cardiff, Sheffield and Liverpool, minicabs ARE allowed access to the prized road space.

Can taxis and private

All Hackney Carriage taxis can hire vehicles pick up access bus lanes where marked and drop off with signage displaying the word taxi. For the most part, passengers in a bus private hire vehicles (PHV) lane? cannot access bus lanes, however there are some In London both taxis and exceptions. private hire vehicles can pick up or set down customers in a bus In Coventry and Nottingham, wheelchair accessible PHVs can lane even if they are not normally allowed to drive in it. access bus lanes. The same The only exceptions are goes for Northern Ireland, stretches of red route where where there are four types of stopping permitted36 APRIL 2022is not - Edition

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TAXI RULES stopping is not permitted because of the disruption this would cause to already busy roads. Transport for London (TfL) tells its taxi and private hire drivers that: •

Drivers should enter and leave the bus lane in the most direct and safe way

•

Customers should never be set down in the middle of the road, even if the vehicle is stopped due to traffic - the driver must always get close to the kerb

•

Private hire vehicles cannot stop at 'bus stop clearways' marked with a wide yellow line by the kerb. On red routes both taxis and private hire vehicles cannot stop at bus stops marked with a wide red line by the kerb. At other red route bus stops, taxi and private hire drivers should avoid stopping to avoid disruption to the bus network

•

Remember, only licensed taxi drivers can drive in bus lanes - private hire vehicles are not allowed. Licensed taxi drivers should check the signs at the start of the bus lanes, however, because there are a still a number of bus lanes they cannot use.

Why can taxis access bus lanes and not PHV? In 2015 Addison Lee challenged this theory at the European Court of Justice (ECJ) and lost. The ECJ said only black cab drivers are allowed to use the bus lanes because of their distinction from minicabs. Crucially the courts also found the banned usage of PHVs did not give taxis an economic advantage. TfL have long argued that taxis are allowed to drive in bus lanes because they can ply-for-hire, whereas minicabs cannot. All licensed taxis in the capital are also required to be wheelchair-accessible and need full curb-side access.

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TAXI RULES TfL also had big worries around the reliability of bus services, if minicabs were included. Allowing tens of thousands of minicabs to drive in bus lanes would slow down already stagnating bus times. In 2012 private-hire drivers staged a protest outside the Manchester Town Hall after being banned from using bus lanes.

there were things TfL can do to actually lessen the problems. Andy Byford, Transport Commissioner, responded: “We have very regular dialogue with the taxi industry and also the Private Hire (industry), including myself. I meet with them on a scheduled basis, Helen Chapman, our expert and Director in this area, has very, very regular dialogue.

Minicab representatives at the time said the council were discriminating against them by preventing them “When we do look at things like bus lanes, Low from using the lanes, which black cabs could Traffic Neighbourhoods, cycle lanes, etcetera we do continue to use. factor in, and take account of, the potential impact Manchester Council said that bus lanes were used to on taxis because like you I recognise the iconic nature, of in particular black cabs, it is for me the speed up journey times and ease congestion. However James Parry, a solicitor acting on behalf of best cab service in the world. The cabs do place a the Private Hire Association, said taxis and PHV were very vital part in London’s transport offer.” essentially doing the same job.

Private car usage in big cities looks set to be reduced further with more road-pricing schemes and charges What does the future hold for taxis in set to drive motorists away. Publicly hired taxis and bus lanes? even privately booked minicabs are increasingly seen as a cost-effective way for authorities to introduce In a recent Transport for London (TfL) Finance greener and more efficient road surface transport Committee meeting there was concern raised over alongside buses and cycles. Dare I say it… taxis are the declining numbers of taxi drivers available to the increasingly being viewed as a solution to future A to public and for its long-term future by the Chair of the B transport offerings and access remains vital. meeting Anne McMeel. McMeel said: “There is something about the future of black cabs and if we want them to be part of the iconic image of London then we need to look at what our overall policy is over black cabs going forwards.” McMeel also added her concerns around the impact of declining bus lane access, Low Traffic Neighbourhood (LTN) schemes and rising congestion that she said “could send the price of a taxi zooming through the roof, even for relatively short journeys”. The Chair queried how TfL were trying to ‘synchronise policies’ and whether

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INDUSTRY BEHAVIOURS

Most taxi drivers and passengers have stopped wearing face coverings since the condition of carriageway was dropped in February according to recent polls.

According to a snap poll conducted by TaxiPoint, nearly nine in ten cabbies are no longer continuing to wear face masks for the majority of fares.

The wearing of face coverings has no longer been a condition of carriage across taxi and private hire services since 24 February, but drivers and customers have been strongly recommended to wear them if they are able to.

Peter Griffin, a taxi driver from Plymouth, has continued wearing a covering to reduce the risk of transmission forcing time off work. Griffin said: “Passengers say do we need to wear a mask, always say no it's up to you. 90% then put The UK’s biggest transport regulator one on. Transport for London (TfL) made the “I'm 65 and had medical decision to no longer require issues as most have at my customers to wear face coverings as age. Plus, I don't want to a condition of carriage on its have time off work, services from 24 February, having though I don't work considered a variety of factors as hard as I used to. including the shift in the Stay safe Government's approach towards everyone.” living with the virus and decreasing Frank Edwards infection rates in London. also continues to

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INDUSTRY BEHAVIOURS wear one as part of contractual Cabbies Geoff Brayfield and Julie agreements. Edwards said: “Got Boxall told TaxiPoint they have to wear one on school contracts.” kept their partition screen in place. Many cabbies have dropped wearing a face covering unless asked by the passengers. Taxi driver Khalistan Manaf said: “No (I don’t wear a mask), unless customer requests, or journey has any connection with covid, or obvious illnesses.”

South-west taxi driver David Roberts no longer wears a mask, but has also retained the use of a screen. Roberts said: “Got a screen up since 2020. All passengers sit in rear.”

What about partition screens?

What about passengers? Are they continuing to wear them?

Another key announcement affecting the taxi and private hire industry included the continued use of partition screens which became a popular safety addition during the peak of the covid pandemic.

According to taxi drivers, and from my own experience, it’s a similar story for those travelling in the back of the cab. The majority of taxi users are no longer wearing masks. TaxiPoint asked readers what proportion of taxi passengers still wear face coverings whilst travelling in their taxi. 88% of drivers said only one in four passengers still wear a covering.

TfL told minicab drivers who have a temporary screen fitted in their vehicle that they can continue to use them. A notice read: ‘Licensees who have already installed an approved temporary screen in their vehicle can continue to use it.’

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GUEST FEATURE

ARTICLE BY: FOUNDER OF MILEUS AND CO-FOUNDER OF LIFTAGO Fuel and electricity costs increasing, supply chain issues causing driver shortages – these factors are driving up operational costs for many PHV operators. Now the new VAT requirement for UK PHV operators moves the pricing for the end consumer even further up. And the inflationary pressures don’t look as if they’ll be dissipating anytime soon. Congestion charges and the pressure to electrify their vehicle fleets because of CO2 regulations or low emission zoning further spur these prices up. Already in the last quarter of 2021, PHV companies were under mounting pressure to increase the price of their service. As we creep towards the end of Q1 2022, this only seems to be getting more true every day. In the UK, Uber is increasing their service prices by 20% to cover VAT charging requirements as mandated based on last December’s High Court ruling and it is expected to further increase to cover

energy prices. Bolt is hiking up their prices in London by 10%. Regulated licensed taxis in the UK are expected to raise their rates between 3% and 15%. Inflationary pressures are broad and impact many aspects of everyday lives. Customers will cut purchasing premium services where cheaper alternatives exist. Or cut the consumption of unnecessary services. In the case of PHVs – cheaper alternatives being either public transport, car clubs or micromobility. And, of course, our own private car is perceived as a cheaper alternative to taxis for most. Unlike utilities or Netflix service, PHV operators do not hold strong pricing power – meaning as PHV operators raise their prices their consumers will simultaneously stop or at least reduce their use of the service. On the contrary, when the price of a service with pricing power goes up, most people will keep paying to keep using the service. With the case of electricity, people will keep buying it due to necessity (i.e. no cheaper alternative). With Netflix, it is a low enough expense to still survive within a

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GUEST FEATURE family’s monthly budget considering the value drawn from such service.

developing such a brand and reputation does not happen overnight To cope in this new economic climate, and takes a lot of nurturing and creativity. PHV operators need to look for ways to minimise customer churn and Offer promotional deals keep customers using their service. This is a fun one – diversify how, But, of course, the million-dollar and maybe with whom, you offer your question is ‘how’ – especially given the fact that this economic climate is services. Here are some examples of jointly impacting consumers’ choices what PHV companies on the market are currently doing. across the board. Specific market segment offers: In As PHV operators are raising their prices, there are three key strategies Madrid, Cabify offers students who study at one of the city’s largest they should embrace to retain universities a special deal, helping the customers and their engagement PHV company engage with a specific levels. And maybe, just maybe, they market that they would have not may even attract more customers. otherwise.

Increase service value

Monthly bundle subscriptions: Uber, Naturally, people are more willing Lyft, and Ola are some of the big to pay more if they feel they’re getting names who have been offering more bang for their buck. Sadly, subscription deals to customers; they customers of course don’t feel that pay a monthly “membership” fee and added bang for their buck when in return they get discounted rides they’re paying for inflation and hiked and/or added service perks. up fuel prices. Loyalty programs: FREE NOW rewards It is possible to improve service without stressing explicit financial costs. Guarantees for arrival times or car class upgrades are some examples.

customers with special points for every ride they take, which can be used towards special ride-discounts or prizes from partners.

Becoming a love brand is also a strategy that can also increase stickiness. Being a love brand means that customers want to support that brand, even if they may not need it. It’s about how the company positions itself compared to other competitors or peers on the market in terms of their value and story, how the business supports local communities, and how they may engage with customers in new ways. Of course,

Symbiotic partnerships: Cabify has tagged up with British Airway, Iberian Airways, and Vueling Airline’s loyalty programs. This gives both parties more value for one another’s business offerings, making their respective businesses more attractive to customers.

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Every PHV company’s business model and market landscape is different, so these are by no means copy-and-paste templates. But they are perhaps

GUEST FEATURE launchpads for creative thinking of how services can be offered in a dynamic new way that will make customers want to choose your company.

Drop the average order value (AOV) Striving to decrease AOV may seem counterintuitive at first glance if a company is trying to improve their overall revenue. But 101 economics shows us that lower prices increase demand through increased order frequency and market expansion. Let’s do some basic calculations here. Inflationary pressures might have already pushed prices up about 30%. The new VAT rules add another 20% on top of this for several operators. So now we are already at a 56% price AOV increase for the consumer.

To maintain the service cost customers are used to, it means dropping the AOV. I’m not suggesting reducing AOV by reducing the price per kilometre travelled. Rather, I’m suggesting to decrease AOV without decreasing margins – PHVs can decrease the length of their journeys by incorporating public transportation into their routes with intermodal technology. Incorporating public transportation into the typical journey reduces the PHV’s AOV by 45%. That new ‘savings buffer’ (or what would be savings before operators were hit by all these price increases) can now comfortably absorb the increased prices. Plus, it can even save them a little more money, which can help attract them as they are also more price sensitive in the economic climate.

be. PHV services can extend the serviceability of public transportation and help connect this first and last mile of a customers’ transportation need – i.e. offering an intermodal journey. An intermodal journey is more comfortable and convenient than just public transport, which is the commuter’s only other option if they don’t want to pay for a PHV service that is 56% more (accounting for both inflation and VAT) than what they are used to paying or if they don’t want to or can’t take their own Image credit: Mileus

private car. Plus, intermodality is often faster than a journey that is completely done by a private car or PHV because public transit in city centres beats congestion, while still getting the customer comfortably to their destination’s doorstep with PHV on the first or last mile of their journey. Furthermore, intermodal journeys help drivers optimise every kilometre driven. It makes ridestacking easier for drivers and reduces those dreaded passenger-less dead-miles – you can learn how here.

So, while we find ourselves in yet again ‘unprecedented times’ brought on by increased prices, I think these three tactics will be the solution to enable PHV operators to retain customers and retain revenue. By achieving this, they will be able to Customers can even enjoy the perks that public transit emerge from this tough time stronger and ready to -PHV intermodal journeys bring. Public transport, fuel their growth once the economical environment particularly rapid transit like subways or urban trains, allows. rarely are within a comfortable walking distance the further away from urban centre one is or one needs to

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CABBIES QUESTION

For a taxi driver, there’s really three options on how you decide to work your shift; either wait on a taxi rank, drive around seeking out a fare, or working with booked fares. Whilst all three options can be included on a day -to-day basis, many tend to divert to one in particular. As a driver of 12 years, I myself have always tended to go in search of fares. This is mainly because I find myself getting bored sitting on ranks and can even find myself becoming quite anxious when it’s finally my turn to pick up a fare, wondering whether it will be a decent one or if I have just sat there for all that time for a “sorry driver I know it’s not far but can you take me to..” type fare.

between jobs when there’s plenty of work on the ranks or on the streets. TaxiPoint put the question out to some of its readers, asking which option was their preference. A large percentage of drivers said they try to avoid ranks at all costs unless there is zero work on the streets or nothing via bookings. One driver said he works 99% with pre-booked jobs, saying he would rather sit at home than sit for hours on a rank for a poor job. A few drivers said working school contracts is their preference as that way they are guaranteed work. Others, those who do favour rank work, stressed that they only focus on the big busy stations, that way, for the majority of the year, they can expect to pick up a fare within a reasonable amount of time.

For some, sitting on a rank is the perfect option. The main benefit being fuel savings. While I’m driving around without a fare, chugging all my fuel away, Mr Ranker is reading a book saving their fuel for a rainy day.

And of course, some said they try to mix it up. Cover the work as and where their day takes them; the nomads, let’s call them. The free thinkers who function best when they just go with the flow. Whatever option you choose, it’s Some drivers use booking operators to access all about getting through your shift with as little jobs throughout the day, especially in the stress as possible. Cab driving normally finds a mornings for things like school runs. This kind way of stressing you out, whether its traffic, of work offers the luxury of knowing you have rude passengers, or no passengers at all, jobs pretty much guaranteed at certain times of working your shift and how you prefer to, is in the day. The downside being that you need to the eye of the beholder. be good at planning your shift properly to cover the work and also you run the risk of waiting

APRIL 2022 - Edition 36

LICENSING

ARTICLE BY:

The Department for Transport (DfT) has launched a consultation to help develop new best practice guidance for the taxi and private hire trade. The last time best practice guidance was published was back in 2010. It’s fair to say, in the 12 years that’s passed, the trade has changed significantly. At last year’s Institute of Licensing National Training Conference, new best practice guidance was something that came up a lot. Both as a desire and a joke. This consultation was supposed to be ready for the conference last year, but it’s better late than never!

What is the trade being consulted on? The changes the industry has gone through in the past decade means some of the consultation focuses on issues that weren’t around when the last best practice guidance was published. Things like ride-sharing apps, app booking technology, and electric vehicles are all new things to consider. Some of the key areas identified in the consultation’s draft guidance include: •

Driver proficiency

•

Vocational training and assessment

APRIL 2022 - Edition 36

LICENSING •

Tinted windows

•

Identification and signage

•

Vehicle age limits.

Hasn’t there just been new guidance? 2020 saw the publication of the new Taxi and Private Hire Vehicle Standards. This document, although extensive, is focused on safeguarding and protecting the public. Guidance produced as a result of this consultation will target things like driver proficiency, livery and signage and the enforcement of licensing regimes.

Licensing authorities have been asking for new guidance for years at this point. The announcement of this consultation is no doubt a welcome sign for licensing managers. The consultation is open to licensing authorities as well as the public, licencing authorities, operators, drivers and representative bodies. The consultation will run until 11:45pm on 20 June 2022.

For a frank and unbiased discussion of industry news, you can also check out our ‘What Time You On ‘Til?’ podcast, available on all major platforms.

It’s important to clarify that any guidance that is produced following this consultation is just guidance. There is no statutory responsibility for licensing authorities to pay attention to it.

National Minimum Standards In the foreword to the consultation, Baroness Vere comments on where the government are up to on nationalised standards for the industry: “The government’s commitment to introduce legislation, when parliamentary time allows, to enable the setting of national minimum licensing standards remains. “The measures in the final version of the best practice guidance, and the statutory taxi and private hire vehicle standards issued in 2020, are likely to be the starting point when setting any such future legislation.”

ARTICLE BY:

‘When parliamentary time allows’ is inherently ambiguous. It could still be many years before any kind of national standards are introduced for the Taxi and PH trade. However, it’s good to TaxiPlus help deliver online pre-licensing solutions. You can drop them an email to see that the new guidance and standards are hello@taxiplus.co.uk to learn more. likely to form the foundations for the future nationalisation of standards.

APRIL 2022 - Edition 36

AROUND THE TRADE

safety We here at Safety as a Standard (SaaS) are an awarding and consultancy body that promotes, enhances, monitors, and audits safety standards for companies within the taxi and private hire and wider ground transportation industry. Our goal is to make the industry safer and help establish in the near future one solitary national standard throughout the industry, eliminating all the different multi standards and processes that exist, thus in process raising safety standards and awareness in helping drivers, fleets, and the community be more focused in protecting the industry and be more safety conscious no matter where or which part of the country you apply your trade today or in the future ahead.

create awareness, and an understanding of the ramifications of non-compliance of vital key areas in the industry such as, Sexual Harassment, Safeguarding, Mental Health Awareness, LGBTQ+ Awareness, Data Protection, Drug Trafficking Awareness, Anti-Money Laundering, Conflict Management and much more.

SaaS CEO Dacian Keran and Anand Dave the SaaS Business Development Manager are both very passionate about the industry and its safety and have both stated openly that “we here at SaaS, don’t just talk about safety, but we act on it every day from every angle, pushing to raise the standards of the ARTICLE industry and pushing SaaS to become a national standard where everyone associated to the industry The SaaS training courses and programmes are specially developed whether it be management, and aimed at every individual in taxi driver or the community are and private hire, whether you are a all in a better place in hackney or private hire driver, fleet awareness and more operator or management, no matter importantly safer”. what your background, the SaaS At present the SaaS training training programme is tailored to the programme has seen and is very highest standard to educate, growing a SaaS culture, by which we

BY:

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AROUND THE TRADE mean that fleets as well as industry associations across the country are either supporting or incorporating the SaaS training programme as part of their safety training culture.

of tomorrow such as with Gary Jacobs and the team of Eazitax, Daniel Price of Jyrney and many others.

As part of Safety as a Standard’s on-going commitment to safety and raising safety standards Fleets such as Rachel Dale and the team of AAA Taxis and awareness we continuously aim to work with all Hertfordshire, Aqeel Arshad and the team of Street drivers, fleets, and associations as well as Cars Manchester have already taken the steps on independent supporters of our primary goal. safety training and awareness by embracing the Created special Corporate Membership Routes and SaaS programme, as has Jacqueline Nickels and the individual choice of training programmes because team of TULDA, an association seriously taking steps there is no substitute for safety and only in collective in wanting the entire area of Torbay to be safer and unisons, we can all have an industry that has a more safety conscious. cohesive training programme for Further support to the SaaS training programme is all, no matter from and working with David Lawrie, director of where you are NPHTA and S.A.F.E Systems CCTV with whom SaaS but most are official members of the association, as also members of the LPHCA and working with Steve and importantly the paramount of Alan Wright and their entire team. safety and Outside of the affiliation with industry associations awareness being and fleets we also have strong and growing the benchmark partnerships with companies who believe in SaaS for all. and together working for the better of the industry

APRIL 2022 - Edition 36

DRIVER APPEARANCE

ARTICLE BY

MICHAEL

MURPHY

TAXIPOINT

How important is it for a taxi driver to maintain a professional appearance? Do customers even care as long as you know where you are going? Well, there’s no definitive answer, as it’s very much each to their own, but what are the benefits of looking clean, tidy and coming across more professional in your attire and workspace? Well, there’s a fair few. Your image can have more of an influence on your work performance than you may think.

well as yourself. Your customers are more likely to feel relaxed and let you get on with the job at hand. Dressing professionally and maintaining good hygiene conveys so much more than we may initially appreciate. We tell those looking at us that we are serious about our work, that we enjoy our job, and that we expect some professional courtesy from our customers and from our peers.

But it’s not just what we wear, how we brush our hair, or what deodorant we wear, maintaining a professional appearance with our workspace is also, if not more in the case of a taxi driver, extremely important. As you pull up to pick up a passenger, your vehicle is the first thing they will see, that’s their first impression of you. A clean cab could set the tone of the whole journey. If you were about the There’s that saying “look good, feel good”, knowing head to an important meeting wearing your best we’ve made that extra effort in the morning can set suit, would you be happy your day up nicely for a positive attitude, and that opening the door to a could well project outwards throughout your shift filthy taxi? I doubt it maintaining a half-full mentally rather than a halfvery much. It’s empty one. Although comfort is definitely at the top why ‘executive’ of the list for a cabbie when deciding what to wear, private hire that little bit of extra effort can make all the services do so difference. well, First impressions are key to building any professional relationship, no matter whether it’s a five minute people want to professional relationship or a long term personal spent their whole one. By presenting yourself in a professional manner working day within a you immediately build confidence in your client, as professional environment.

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APPEARANCE If, as a traditional taxi driver, we want to compete with such services, we have to meet the bare minimums with a top class clean and professional appearance. Cleanliness within our vehicles is possibly the most important of all. No one wants to sit amongst dirt, or take a ride in a vehicle with a sketchy smell. Although it’s pretty much impossible to brush down our seats between each journey, checking that there are no obvious signs of dirt or mess left by passengers could make the difference between a happy punter with a nice tip and an unhappy punter who spends the whole journey moaning, giving you grief. Saying all this, with the argument that time and money may not always permit us to maintain a super clean vehicle, or allow us to dress in some of the clothes we feel most confident in, one thing there is no excuse for is personal hygiene. Good hygiene lets people know that you like to take care of yourself, therefore could convey the impression that you are going to take care of them and deliver a professional experience. It also says something about your character. A smelly driver means a smelly vehicle. I know I wouldn’t want to pay to spend any amount of time in a smelly environment, so I would never expect one of my passengers to. The simple facts are, we should want to look good. We should want to feel good. And we should want our paying customers to feel good about the service offered. Make that little bit of extra effort and you may get a lot back from it.

APRIL 2022 - Edition 36

MOTORING

As the cost of living continues to rise, millions of motorists could soon be risking their, and others safety on the roads by shunning new tyres in favour of cheaper partworn tyres - described by tyre safety experts as ‘death traps’.

worn tyres, with well over half (55 per cent) of residents of the capital admitting they are considering buying partworn tyres.

Interestingly, Londoners are most likely to purchase part

tyres, which can cost up to £1,000 for four.

According to TyreSafe, on average, 159 people are killed or seriously injured every year as a result of Research conducted by the defective tyre related UK’s leading independent accidents. An investigation road safety charity, IAM conducted by TyreSafe also RoadSmart, has revealed that discovered that 63 per cent nearly 40 per cent of the of part-worn tyres were 1,000 drivers surveyed said unsafe to return to the road, they would consider and 93 per cent were nonpurchasing part-worn tyres in compliant. an effort to save money as Neil Greig, Director of Policy the financial squeeze and Research at IAM tightens. This potentially RoadSmart, commented: “In represents over 14 million straitened times, it is little motorists out of the 35.9 wonder so many drivers million drivers in the UK. hesitate to purchase new

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MOTORING “However, the importance of purchasing high quality tyres cannot be understated. Adequate tread depth is essential for safe driving on wet roads and facilitates effective acceleration, cornering and braking. Conversely, many partworn tyres deliver longer stopping distances and reduced manoeuvrability, making them potential death traps. “Therefore, we would urge hardpressed drivers who are hesitating to purchase new tyres to ask themselves whether the additional cost of new tyres is worth putting yourself, as well as other road users, at risk. “Drivers should also consider the cost per millimetre of usable tyres, rather than merely the initial purchase price. New tyres are normally sold with around eight millimetres of tread depth, whereas part-worn tyres have as

little as two millimetres of tread.” The survey also revealed that the majority (57 per cent) of respondents stated that they always check their own tyres, while nearly one in three (27.7 per cent) said they ask a friend or relative to check their tyres. Neil added: “It is encouraging to see that safety conscious drivers are asking somebody else to check for their tyres for them if they do not have the knowledge to do so themselves. If you have bought a second-hand car, you should always check whether the tyres are roadworthy, including whether the tyre meets minimum depth requirements and is free of defects. This way, we can ensure Britain’s roads are as safe as they can be.”

APRIL 2022 - Edition 36

TAXI INDUSTRY HELP

UK taxi drivers and operators, as well as some from other European countries, have stepped up once again to show their selfless, kind, giving nature, by rallying the troops to help the victims of the war in Ukraine.

Darren’s Cars cab firm endured the long two-day trip to Poland, passing through France, Belgium, Holland, and Germany enroute. After arriving at their destination, Mr Tair, who runs the business, said: “Unloaded all nine vehicles and now sat in a rush from Millions of civilians have been forced to flee their being looked after by the local church community we homeland to seek safe refuge from the invasion of Russian military forces, leaving most without essential are feeling very privileged to be the company in such horrible times we have got lots of photos and bits of supplies. But here’s where cabbies came together to do their part in ensuring as many people as possible do video to share. Thank you all very much for all your kind words, donations of goods and helping with the not have to go without. costs.” London’s iconic taxi drivers arranged for a fleet of cabbies to travel to Poland fully stocked with vital aid It's not just been UK cabbies who have stepped up in the hour of need either. A convoy of taxi drivers from for Ukrainian refugees. A number a taxis made the trip, transporting items such as toiletries, nappies and Madrid, Spain, also drove to Poland to deliver aid and other aid for families who have lost everything during ferry a number of refugees back to Spain. In total 135 Ukrainians were transported from a Warsaw refugee the conflict. camp in 29 taxis. The majority of refugees were said to The capital’s cabbies are not the only ones who made be women and children who have family already living the long trip, a local taxi company from Devon and in Spain. Spanish cabbies travelled 2 per vehicle to Cornwall also showed their empathy to those suffering help split the driving. The total roundtrip was by sending 9 large vehicles to hand out donations. approximately 3,700 miles.

Image credit: LEVC

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GLOBAL NEWS

The city’s iconic yellow taxis will now be available to hire via their main rival Uber’s ride-hailing app. According to the Wall Street Journal who broke the news, Uber aims to have every traditional taxi service from around the world on their app, available for hire at some point.

A taxi driver has filed a legal complaint against Tesla Founder, Elon Musk, after the Tesla Model 3 taxi he was driving was involved in a crash in Paris which left one person dead. The driver claims the vehicle accelerated by itself causing it to crash through a metal post, a row of rental bikes and a bin full of glass, hitting a pedestrian and a van before stopping. The complaint claims which were filed with public prosecutors, allege the Tesla car put the lives of others in danger.

100 taxis, featuring advertising by Seychelles News Agency, have driven around a number of Italian cities in a bid to drum up tourism, in a strategic effort to generate more money from holiday makers since the industries, both tourism and taxi, have suffered hugely over the last 18-24 months due to the coronavirus pandemic.

A Dublin cabbie has been jailed for careless driving after hitting two pedestrians crossing a road. The driver originally blamed the pedestrians, claiming they had walked into the road while intoxicated. One of the victims of the collision was a woman who sustained minor bruising. The other was her husband who took the brunt of the impact. He was left with multiple skull and spinal fractures and severe brain trauma. Although making a recovery, he is said to be left with significant cognitive deficits. The driver was sentenced to 14 months, with the last six months of the sentence suspended. He was also disqualified from driving for four years.

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Image credit: ComfortDelGro

GLOBAL NEWS

Thomas Zimmermann has become the new Chief Executive Officer (CEO) of mobility app FREE NOW as of 1 April 2022 it has been announced. The previous CEO Marc Berg is leaving the company after four years due to personal reasons. Berg has contributed significantly to the development of FREE NOW from a German taxi app to the leading Mobility-as-a-Service platform in Europe.

Image credit: FREE NOW

Bringing the total number of partners in the country to three, Nybergs Bil operates from the thriving metropolitan city of Jönköping, approximately 150km east of Gothenburg. Having already secured the first sales of the TX Shuttle, Nybergs Bil will provide LEVC (London Electric Vehicle Company) have customers of the Jönköping and Nässjö areas with announced the appointment of its latest Scandinavian complete sales and aftersales support for electric TX dealer partner, Nybergs Bil in Sweden, for the and VN5 vehicles. company’s industry-leading electric TX Taxi and VN5 Van.

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Image credit: LEVC

WORLD TAXI FEATURE

Welcome to part TEN and our FINAL part of our ongoing series of global taxis. We’ve looking at the world’s most distinctive looking cabs outside of the iconic black taxi we see and love in most big UK cities.

illustrated posters, showcasing different taxis from every country. We continue to run through the A-Z of the 57 most iconic taxis. In this edition we look at Uruguay and the distinctive Yellow cab found in USA.

Budget Direct have released a new series of

APRIL 2022 - Edition 36

TRAINING

ACCOUNTANTS

FINANCE

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

APRIL 2022 - Edition 36

BUY, RENT OR REPAIR A TAXI

APPS

COMMS

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

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CLAIMS

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

MEMBERSHIP

CARD PAYMENTS

TAXI SCREENS

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

APRIL 2022 - Edition 36