IN THE NEWS
TAXI COMPANIES ARE BACK IN FAVOUR DUE TO TAXI APPS’ INCREASED PRICES SAY WOKING TAXIS
Cheap fares that were once the calling card of apps such as Uber and Bolt have become few and far between. But due to various litigation and rulings against the companies in the UK, where labour laws are more regulated than other countries of operation, fares have sky-rocketed to compensate. When cheap fares evaporated, and app prices went up by at least a third, that put the cost of a journey on par with - or more than - traditional taxis. With so many younger passengers using apps, this tip has pushed them towards Gett, the app that books traditional taxi and black cab rides. Others are learning to hail a cab on the street for the first time.
Uber in particular has had some work- force practices that are deemed questionable in the UK and Europe. As a result, they have faced a string of court cases, which aimed to force the company to compensate its drivers properly, including listing them as employees with minimum wage and holiday pay rights, rather than being
registered as self-employed. The “gig-economy” has come under fire in many places, and the basis of the business model and successful operations requires cheap and casual labour that is only paid per job. The Supreme Court took issue with that, however, and ruled in the drivers' favour. It was also determined that Uber would be required to pay VAT – to the tune of about £2bn – in a ruling which put the company into a spin. So where has that left the traditional taxi sector? With a big smile and a hopeful future. Since the country
reopened post-Covid restrictions and trade returned, things are looking rosy for cabbies. The resurgence has even been likened to business before the apps ever existed - and in some areas even better. This has seen much-needed recovery for the suffering sector, which is now able to reclaim its market share after a decade of app-related gloom. And it’s not just London that is returning to the use of black cabs, but around the entire country, there is a return to taxi companies as rock-bottom fares through the apps are no more - and are now often more expensive. The figures speak for themselves - cabbies are reporting more turnover and bookings taken by Gett for cabs and private hire cars. Gett has report- ed a 40% increase since Covid restrictions were lifted, even though foreign tourists are still mostly absent from the UK compared to pre-Covid times. The demand has come primarily from summer with British and Irish holidaymakers capitalising on heavily discounted offers around the country.
BOLT RAISES PRICES BY 10% IN LONDON TO MATCH UBER BUT APPEARS TO KEEP IT A SECRET
Bolt has raised its fare by 10 per cent in London in a move to match its prices with Uber. My London reports that Bolt’s price rises in January will mean that now Uber and Bolt have the same base fares in the capital due to Uber’s similar increase back in November. The reasons for this price change have been varied with suggestions that, capital wide, companies are struggling with a shortage of drivers and an increase in competition among firms. London is the only city that Bolt has raised its prices in because of a recent
FEBRUARY 2022
High Court ruling which has raised their costs. The ruling means UK private hire operators must enter a contract with customers when they accept bookings. The ruling, made in December 2021, has caused problems for companies such as Uber and Bolt which previously said they were just hosting platforms, connecting passengers to drivers. It is important to remember this is just for the capital and prices vary on the time of day, length of trip and how busy drivers are. The rates above are
just the base rates. A spokesperson from Bolt, said: “From time to time we adjust our pricing to ensure we continue to offer the most competitive app for drivers and subse- quently maintain leading availability of rides to passengers. “To this end we have recently increased our pricing in London. All live pricing is displayed within the Bolt app and passengers receive an estimate before confirming any journey. We have run through the changes with drivers as part of our regular newsletter.”
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