PRIVATE HIRE DRIVERS
Restoring at least minimum wage, with potential for profits
The alternative is a minimum fare structure which compensates for a reasonable amount of time spent waiting for trips, and for ‘dead’ mileage where appropriate. If the average trip takes 15 minutes from acceptance to completion, the driver should be paid for 30 minutes, or at least 15 minutes in addition to the on-trip time. During a busy hour, instead of making minimum wage for that hour, the driver will earn significantly more. This will compensate them for the quieter periods when they may earn considerably less, so that the minimum wage or more is an average for all hours worked.
This will strike a balance between drivers having zero flexibility on the one hand, and being able to choose to work at times or in places where there is little or no work available, whilst still expecting to be paid for that time, on the other. The onus will therefore still be on the driver to choose their hours and locations where and when there is demand.
Reducing the incentive to “multi-app”
Operators will also need to work with drivers to ensure that there is enough work for them to earn at least minimum wage, on average, for all hours worked, but this does also mean that drivers must be more reliable and dependable, which is undermined by the practice known as multi-apping, where drivers work simultaneously for multiple operators.
A fare structure which compensates for reasonable time spent waiting, and for ‘dead’ mileage should also mean that operators can assign trips to drivers based on proximity of reliable drivers to passengers. Dynamic dispatch software can also account for drivers with other passengers in this respect, as well as those waiting for work. This is a far more efficient model than the shotgun approach of firing multiple jobs to multiple drivers, often while they are driving and already engaged in trips, in the hope that someone somewhere will accept them.
By paying drivers more and giving them confidence to accept all trips offered to them, we can move to a model of higher efficiency, productivity, reliability and safety. If drivers are not faced with accepting trips, having assessed whether they are financially viable or not, while they are driving, this will reduce the potential risk of collisions. A follow-on trip can and should only be offered on completion of the previous journey, with a reasonable expectation it will be accepted by the driver.
PHTM MAY 2025 Ensuring operators can also make a profit
The minimum fare structure would be the one payable to drivers, not charged to passengers. Under normal circumstances, the operator would then charge the passenger more to cover their expenses and make a reasonable profit.
Promotional offers?
In theory, and for limited promotion periods, they could charge the same or even less to passengers. If operators charged a fixed weekly settle, the fare rates paid to drivers would have to reflect this, allowing them to recover this cost in reasonable time.
An advantage for all operators
A minimum fare rate paid to drivers across the industry would have a limiting effect on potential trade wars between operators, who would then not be looking over their shoulder to see what their competitors were charging beyond time-limited promotional offers.
Average earnings for average hours
What we absolutely must stop happening in our industry is drivers having to work 70 or more hours per week just to be paid for 40 hours. Such exploitation not only impacts on the driver’s emotional wellbeing, relationships with their dependents and other close contacts, it also has obvious public safety implications.
Waiters do not work to a stopwatch, and cleaners do not stand unpaid with a mop and bucket waiting to receive work. Even if licensed drivers’ working status inhabits a void between employee and self-employed, they deserve the same level of protection from exploitation as all other working people.
Equally, nobody should be fooled into thinking that being paid for all hours on-trip equates to payment for all hours worked. The difference between these two is measurable in tens of hours.
We will be debating this minimum fare rate option at the PHTM EXPO LEGISLATION Q&A taking place at 2pm on Wednesday 14 May.
AGREE OR DISAGREE, COME JOIN US AND HAVE YOUR SAY!
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