Opinion: The London minicab trade is claiming a 'recruitment crisis'.  We take a different view.

With the initial stages of London minicab driver licensing now well under way, the trade is claiming that the supply of new drivers has 'dried up'.  While we have no reason to doubt this claim (but no doubt there is a degree of exaggeration involved, particularly when language such as 'recruitment meltdown' is used!), there are many competing interests to consider, and a different perspective is required to outline the benefits of regulation.

It's an ill wind that blows nobody any good, as the saying goes, and of course with fewer drivers in the trade the legitimate ones remaining will earn more as a consequence.  Although minicab licensing was intended primarily to safeguard the public and provide a basic level of service to customers, another major consequence of making it more difficult to obtain drivers' badges is that ultimately this will force drivers' earnings upwards.

Many of us working in the cab trade outside London will have experienced drivers spending a 'normal' working day sitting around doing nothing (and actually driving a handful of hours in addition to this) while at the same time greedy office proprietors and cab owners complain about not being able to recruit enough drivers.  Of course, we should not expect the London minicab trade to be any different to this.  Indeed, such a scenario was revealed last year when The Observer reported the experiences of an undercover reporter working in the trade: "On the first day on the job, I started work at 7am on a 12-hour shift.  I made £30 in fares and received a £40 parking fine...Most of the day was spent sitting in a cramped, undecorated room..."  Unsurprisingly, it seemed that the office proprietor had no qualms about taking on any new drivers willing to pay his fees.

Another claim is that some minicab firms may go out of business as a consequence of licensing.  Again, this should hardly come as a surprise.  Another article featured in the national press earlier this year is also instructive.  Reporting on a minicab driver convicted of raping his passenger, the Dail Mail said that: "Further inquiries into the rapist's firm revealed that each of its 32 drivers was working illegally in some way either through their immigration status or by claiming benefit while working."

Nothing new
In fact what the minicab trade in London is currently complaining about are hurdles of the kind that the provincial private hire trade has had to deal with for years, and indeed it's probably considerably harder to become a private hire driver in many provincial areas than it currently is to do so in the capital.  However, trade criticisms regarding the sometimes over-lengthy Criminal Records Bureau vetting process do have some validity, but again this has been endured in the provinces for some time.

Another valid point made by the legitimate minicab trade is that regulation will benefit unlicensed and illegal touts, the main source of danger to the public.  Thus, stamping out these practices should be an imperative for the Metropolitan Police and Public Carriage Office (PCO).  Indeed, the very existence of a massive minicab sector in London demonstrates one major regulatory phenomenon evident in the trade - limiting entry to the first (taxi/hackney carriage) tier merely increases the size of the second (minicab/private hire) tier.  By the same token, restricting entry to the second tier will bolster the third (unlicensed) tier, unless touting/plying for hire rules are strictly enforced.

Representation
The issue also demonstrates another feature perhaps unique to the cab sector, in that the 'trade' is often regarded as having a common interest, whereas here the concern seems to be with office proprietors and agencies, and not with the bulk of drivers who make a living from the trade - how many of the 40,000 minicab drivers pre-registered with the PCO are worried about the 'crisis'?  Probably not that many - less drivers means more work and greater bargaining power against the worst excesses of minicab offices.

Similarly, in the provinces, cab trade unions often represent the interests of the 'employers' rather than the 'workers', using the parlance of the mainstream economy, but this does not always seem to be appreciated by those with their hands on the levers of power.

Fare rises?
One downside from the public's point of view could be higher fares in the longer term, particularly at the cheaper end of the minicab market.  However, given that fares have effectively been subsidised by factors like uninsured vehicles, tax and benefit fraud, and illegal immigration, then this should not be entirely unexpected.  Of course, the public will benefit from a safer and higher quality service.

The 'recruitment crisis' maybe demonstrates the nature of parts of the London minicab trade and perhaps ironically shows the extent to which regulation was justified.  While the trade may take time to adjust, it should go without saying that the provincial trade has had to deal with these perceived 'problems' for years, and the world is still revolving, and cab wheels are still turning.

But many in the trade will never be able to recruit enough drivers, with or without regulation.

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