IT’S TIME TO UNITE
F.A.O. LOCAL OPERATORS AND DRIVERS LICENSING OFFICERS AND THE UK GOVERNMENT
I am writing this letter as a plea to you ALL to make 2025 the year we unite to work together to save our industry before it’s too late!
BACKGROUND:
I personally began my journey as a private hire driver in 1990 and established my first private hire company in 1991. Over the years, I have dedicated countless hours to ensure its success. Now, 33 years later, our company has welcomed many local operators into our fold, including those with a rich heritage dating as far back as the1920s.
Together, we represent over a century of history; 250 drivers, working as a close-knit family, aiding one another to serve and support our local community in our charming southern market town - far removed from the hustle and bustle of larger major cities.
We have been lucky, historically we have not had to contend with ride-hailing apps such as Uber. However, recently that dynamic has shifted dramatically.
We now face a formidable competitor determined to dominate the UK taxi and private hire industry at any cost.
THE FUTURE:
This company has deep pockets and can offer loss making incentives to gain new customers such as free trips and 80 per cent off fares plus ongoing special offers. Their strategy hinges on the belief that if they provide rides with large discounts or for free, the general public has no loyalty to their local firms and will flock to use them.
This company uses unscrupulous recruitment tactics. It has a dedicated team called ‘Sales, Growth & Expansion – small cities team UK ‘ whose employees come to a town and book rides with local firms, and during the journey endeavour to entice these drivers to join them with the promise of large financial rewards, often initially paying inflated rates for jobs to secure their allegiance.
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However, once they have built a large local database of drivers, they then lower fares to an unsustainable level, forcing these same drivers to work excessive hours just to earn a basic living wage.
As a community of local operators, we simply do not have the financial resources to compete with these aggressive tactics. The reality is that if we try to match these discounts and offers, we risk driving ourselves into bankruptcy resulting in a race to the bottom.
LOWER FARES, COMPETITION AND POTENTIAL GOVERNMENT INTERVENTION:
Here are a few points for us all to consider:
l Unfair competition: Lower fares by ride hailing apps such as Uber create a challenging environment for traditional taxi services, which struggle to compete with the subsidised rates. This situation could lead to reduced options for consumers in the long term if traditional services are forced out of the market.
l Impact on drivers: While lower fares may benefit consumers in the short term, they can adversely affect drivers' earnings. Many drivers rely on competitive pay to support their livelihoods, and continuously low fares might lead to financial strain.
l Market saturation: Uber’s pricing strategy may lead to an oversaturation of ride-hailing services, which can disrupt local economies and reduce the overall quality of service as drivers grapple with inconsistent earnings.
JANUARY 2025 PHTM
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