Taxi Driver Online

Travel cost cut to £1 in Ribble Valley taxi war


A SECOND East Lancashire borough is in the grip of plummeting taxi fares after rival operators slashed prices. Firms in the Ribble Valley are running private hire taxis for a minimum fare of just £1, from a previous low of £3.

Unlike hackney cabs, the council has no powers to set the minimum fare of private hire vehicles, meaning that prices are completely subject to competition.

Now two firms in Clitheroe are determined to out do each other, with Budget Cabs and Ray’s Cars continuing to lower prices. Alex Lee, operator of Ribble Valley-based Alex’s Private Hire, said it was ‘hardly worth bothering’ for such prices.

He said: “It is not worth starting the car for £1. “It’s just not feasible once you have paid for fuel, insurance and tax. “Prices have been slashed dramatically and a lot of other local firms just aren’t interested in competing with that. “I can’t see how they can make a profit. “We have only been here since February but the price wars have made no difference to us.”

A driver from another rival firm which has not cut its prices, who did not want to be named, said most companies were holding their prices. “A lot of the private hire companies have their regular and loyal customers,” he said. “We have not really been affected by it and we are sticking to our guns.”

It can cost around £10,000 a year to run a taxi and drivers have to pay the operators a share of each fare. No one was available to comment from Budget Cabs or Ray’s Cars.

Last week it was revealed that the minimum fare from some Hyndburn firms had dropped to £1.50 amid a price war. Ribble Valley councillor Ruth Hargreaves said: “I have heard about the cheaper fares but I don’t think the drivers are very happy about it.

“The drivers and firms are offering journeys around Clitheroe for £1 but I think they are doing it more because they feel they have to.”

_________________
IDFIMH

Let them get on with it, my old boss used to say go cheap go skint, all they will do is turn it into a race track, some drivers will try to get the old money still and cause a ruck, everything regarding quality will sink down along with the low fares, if only ppl looked at the tank as money you already have rather than burning up £30 to take £60, I was a nump to this for the 1st few years that I did the job, £25 set fare for a 60 mile journey, fuel was £2.50 back then and it took 3 hours there and back on average, so £10 of what you earned was already riding with you when you left town, add in the odd fixed penalty and no show and I soon knocked that on the head.

Simple maths I guess..even if you get half the work at double the price the discounters charge youve made the same amount of profit...then add on the money youve saved by only doing half the miles in your vehicle and youve added the 50% saved on running costs back on that profit, this give you 25% more profit than the overworked semi deranged discounter.

There is no winners of a discount war..but there are mugs that'll work twice as long and hard just to earn less...

I would simply hand my set back to the operator and tell them to run around for a £1. I wonder if they have dropped their settle accordingly

_________________
Note to self: Just because it pops into my head does NOT mean it should come out of my mouth!!