Big is better or is it?
A
sk most accountants and those in charge of businesses and they will probably tell you that larger businesses
probably true for most of the functions of any business. Raw materials, transport, administration, even banking costs are all lower. This is all very good during times when a business is growing, but what
Recent world events have shown that, in these circumstances big is now not always
indeed, but their sheer size meant that
and they’d taken some risks which failed, resulted in their demise. If they had been a smaller business that would have been bad enough, but being big their fall also brought down a lot of other businesses. Indeed, some claim that their collapse is what precipitated the recession we are now experiencing.
The Taxi Trade also has its ‘big players’. London has three major radio circuits,
has grown way beyond the original driver owned co-operative, to the point where each is a big player as far as London’s corporate transport is concerned. This has meant that, in order to maintain their market share they have, in one form or another, changed their original ‘radio circuit
one that appears to be ‘give the customers
drivers’. The original ideals have been corrupted. How this has happened is open
several issues of taxi talk with the many reasons, real or imagined.
4 major radio circuits which, some claim,
structure, primarily because each one wanted to get a competitive advantage over the other. There are, it is claimed, instances where the radio circuits’ pricing policies have resulted in less income for
seem like a good idea, but if these are not updated when the fares are updated their true value goes down. Another example
is the 20p booking fee that has long been
one circuit decided not to charge it, the other circuits also followed suit. I’ve
per year to the taxi trade
good for the trade, especially as the same companies who reject the 20p booking fee have consistently put up their weekly
and Hove Streamline radio circuits was
taxi drivers on those circuits – in other words there would be ‘economies of
suggests otherwise. There are rumours, claims, counter claims, calls for directors to resign, requests for EGMs and goodness knows what else. Instead of the expected savings it appears that there have been cost increases with, amongst other items, the employment of specialist full time ‘managers’ and administration staff who are supposed to do the work formally undertaken on a part time basis by the working taxi driver directors. In the meantime any effort to change the fares has, it is claimed, been thwarted by the radio circuits.
Even in small places such as Worthing, there are consequences of having a larger organisation. My wife was recently taken ill at work and then taken to hospital. I was at work, but, as our daughter was home
service from our local ‘large’ taxi company, she dialled a number she knew would answer – and that was a Private Hire
are numerous other examples that I’m sure you are aware of, the NHS springs immediately to mind. The cost savings of having everything centralised has, it would appear, been countered by more bureaucratic costs.
some ideas, let’s see what the smaller
businesses do. Without a large
with their own idea on how the business
traditional radio circuit equipment, etc., they are able to react quicker to changes in business conditions. That is precisely how many of the Private Hire companies
expectations have changed. Most people have a mobile phone and expect to be able to get in touch with their ‘taxi’ company immediately. Strangely they are often prepared to wait some time provided they are answered quickly. That is where we can get more work – provided you are prepared to put yourself out a little bit. Taxicall, Twitter, Internet, mobile phone, use whatever suits you best, it doesn’t matter as long as you do something.
It’s not all doom and gloom however, despite what the ‘twins’ would sometimes have you think. There are a small number
drivers who are actually prepared to do something. They are no longer prepared to wait while the cumbersome process associated while local organisations talk with authorities or wait for the ‘company directors’, who are, in some cases no longer actually driving a taxi, to make a decision. Instead they do something positive. In London drivers using the
means of instant communication have scored a number of successes such as
Tiger Tiger, Abacus and other locations. Even some of the suburban drivers are getting their act together by starting or
these initiatives is small in itself, but when added together becomes a force that has the potential to regain the work for the taxi trade. Remember it is the small ants, acting together that can be a far more powerful force than larger animals.
your location or your way of working. Just DO something.
Copyright Mike Hughes 2010
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