Taxi Driver Online

Aberdeen taxi fares could rise
Plan for 4% increase
By David Ewen chief reporter

Evening Express 09/09/2011

Taxi fares in Aberdeen could be set to rise.
A report to Aberdeen’s licensing committee has recommended backing a tariff increase.

Aberdeen Taxi Group is calling for a basic charge which, if approved, would see the cost of a two-mile journey rise to £5.40 compared with the current fare of £5.20 – a 4% rise.

http://www.eveningexpress.co.uk/Article.aspx/2428577

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http://wingsoverscotland.com/ http://www.newsnetscotland.com/

Sounds fare enough , pardon the pun

No mention of the fact that this is the first increase we have had since 2008.

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http://wingsoverscotland.com/ http://www.newsnetscotland.com/

If it's the first rise since 2008. That really is a bum deal.

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Don't dream it ~ Be it.

Last increase was November 2008.

This one isn't in the bag yet, either.

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http://wingsoverscotland.com/ http://www.newsnetscotland.com/

They obviously want to bankrupt you.

Ask them by how much their income has risen in that period and go for parity?

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Don't dream it ~ Be it.

No mention of the word 'Hike' in the headline either

CC

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Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

You mean as in 'take one'?

But I don't quite get the economic logic of all this anyway, which seems to be that all a business has to do to stop itself going bankrupt is to raise its prices.

The logic of covering ones costs.

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IDFIMH

So you mean that all the stretch limos that have gone out of business in the recession could have avoided that just by raising their prices?

No Dusty, there were just too many of them or, they didn't get their costings right.

No point in having a Car that cannot cover it's costs with two hires a week, or fewer, at the current rates.

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Don't dream it ~ Be it.

But the taxi trade is no different.

Except, that is, that demand doesn't collapse in the way that it did with stretch limos and price rises tend to be marginal, thus things tend to happen less dramatically.

So, Some Taxis will go out of business. That's life.

I ran a Café for 25 years, Competitors came and went, eventually I went (because the lease ended) but things were pretty tight toward the end, I don't think that I'd have lasted through this depression.

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Don't dream it ~ Be it.

Is that what you think happened?

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Grandad,

No, but they went out of business cos they didn't cover their costs.

If there is no work then it doesn't really matter what you charge, but it's pointless charging less unless you can generate new customers.

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IDFIMH