IN THE
NEWS...IN THE NEWS..
MOVING FORWARD WHAT’S THE OUTLOOK FOR THE TAXI TRADE NOW
Article by Lee Roach Derby Area Taxi Association.
The Coronavirus outbreak has shaken up the taxi industry dramatically. At the moment it’s estimat- ed around 30 per cent of drivers are currently working. Due to the high risk of infection the other 70 per cent are not prepared to work and possibly put their lives at risk. So how does the taxi trade move for- ward once lock- down is lifted? Well its estimated that things are go- ing to be very different in the
industry to how they were before. For a start the virus is still going to be pre- sent for a very long time. Some experts suggest until 2022. This means that the risk to taxi drivers of catching the virus will still remain high due to the numbers of the public they come into contact with. Further, the govern- ment has stated that after lockdown is lift- ed there will be no large gatherings as social distancing rules which will remain in place. This will mean no large sporting events or entertainment shows. Pubs, clubs and cine-
mas will remain closed for the fore- seeable future. City centre shopping cen- tres will be redun- dant and restaurants, cafes etc. may also remain closed. This all means a massive drop in the amount of daily bookings that oper- ators will be
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facilitating. A massive drop in bookings could be a step too far for drivers. It’s common knowledge within the taxi trade that saturation of drivers has been a big prob- lem for a while. Fleets have been flooded with cars that are simply not
needed. This has previously been tol- erated due to a number of factors. Drivers have been able to work more hours, with some working up to 60 hours a week, to take home around the minimum wage. Also drivers have subsidised their in- comes with tax credits and universal credit. Others have held second jobs or relied on their part- ners working. Some older drivers have claimed a pension from previous em- ployers. All of this has enabled the taxi trade to continue with such high levels
of surplus vehicles and drivers in the industry. Now here lies the problem. With such high numbers of vehicles and drivers combined with a dramatic drop in bookings, estimated at 40-50 per cent, possibly for the rest of the year, how is it going to be finan- cially viable for drivers willing to return to the trade to do so under such testing times? How is it possible for the current business model to work, with such high overheads and a drastic drop in work? We shall soon know!
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