WAKE-UP CALL
WHERE DO YOU SEE YOUR TAXI BUSINESS IN FIVE YEARS’ TIME?
Article by Gavin Johnston Managing Director Inverness Taxis
Fellow operators, are you worried about the future of your business? Are you worried you are losing your market share, your drivers and your customers? If so, stop thinking about it, stop talking about it, now is the time to do something, to ensure both the long-term survival of your firm and our industry.
Our trade is still a vital part of the UK transport network but we are facing substantial challenges in a rapidly evolving world.
We are also hindered by outdated and cumbersome regulation and have recently been threatened with further disruption by multinational companies with deep pockets trying to challenge licensing legislation in the courts.
Whilst it is still important to try to influence and use the support of our politicians as well as legal means to protect our trade, we shouldn’t overlook alternative ideas that can achieve the same goals, perhaps even more effectively.
I believe there is now a new realistic and practical solution to these pressing problems. A solution I am already successfully using in my own business, want to know more then please read on.
LOCAL FIRMS
Taxi and private hire firms play a vital role in supporting local economies and fostering fair competition yet many are losing their customers and drivers to large multinational apps with no real plan to get them back.
Unfortunately, these firms currently lack the essential tools to compete on a level playing field. As a consequence, customers are not getting the service they deserve and drivers have no input in the work that they do - this is why we are sadly seeing many local firms across the country shrinking, merging and closing down.
10 DRIVERS
The majority of local operators are struggling to recruit and retain new drivers. There are close to 400,000 drivers in the UK and the big multinational apps will have around 150,000 drivers and growing. Drivers will now work under more than one operator and have multiple apps on their phones, which has led to cherry picking of jobs and an increasing number of job refusals.
Whilst drivers are the backbone of our trade, the truth is their interests have not always been prioritised or their loyalty nurtured. It’s therefore really no surprise so many have been lost to the big apps. It’s simple, to get drivers back and recruit new ones, we need to put them in the driving seat, keep them safe and pay them well.
EFFICIENT USE OF RESOURCES
This current shortage of drivers creates an illusion of heightened demand, but it doesn’t necessarily indicate better times. In addressing these critical issues, it’s essential that firms adapt and devise solutions to optimise productivity, make efficient use of resources, and reduce overhead costs. This calls for smart and effective automation that brings real change.
STAY OR EXIT
In reality, the taxi and private hire sector has a promising future with ample room for growth. There are several compelling reasons to anticipate increased demand for our often undervalued service.
Factors such as the rising costs of private transport, stricter parking restrictions, low emission zones, toll charges, poor public transport all point towards a bright future for our industry.
However, we find ourselves in a new era, and it is unwise for us to cling to outdated practices solely because of their familiarity. Without adapting to the changing landscape, there will be no future for local firms.
Some have already shut their doors, and others have, or are, actively seeking opportunities to exit the industry. While this may be a suitable path for some, it is not the desired route for the majority.
NOVEMBER 2023 PHTM
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