Taxi Driver Online

Taxi boss: ‘Cap number of cabs’


A TAXI driver fears he and other small companies could be driven out of business if a cap isn’t placed on the number of cabs allowed to operate.

Norman Parish, of Spalding-based A-Team Taxis, says he could be forced to sell his taxi, which cost him more than £30,000, because there are just not enough fares in Spalding to go round.

He claims there are currently almost 40 taxis operating around the Spalding area, which he says is far too many as he can often wait three hours between passengers and then take just a £5 fare.

Mr Parish had hoped South Holland District Council’s would place a limit on the number of licenses it issues for Hackney carriages, but a report to the licensing committee next Wednesday is recommending that a cap is not introduced as it would lead to a “closed market” and could lead to poorer customer services and higher prices.

Committee members will be advised to “let market forces prevail”, even though Mr Parish believes this will mean a number of independent taxi firms being put out of business.

He said: “This could mean that I will have to sell my taxi and set myself up doing private hire as it is just not financially viable to carry on.

“There are far too many taxis and it can mean that on a weekday I make just £30, but it costs £50 a day to put the taxi out on the road.

“Sometimes I have been left waiting in a taxi rank for three hours without a fare, only to get one for just £5.

“That obviously isn’t enough for three hours’ work.

“Times are already hard because of the economic situation and unless a cap is put on the number of licenses for taxis, some will definitely go under.

“It will almost certainly be the small independent taxi firms who are hit the hardest.”

Mr Parish had wanted a limit of 30 to 35 licensed taxis, but said the number is already verging on 40 and will just continue to go up and up.

He refutes the claim that creating a closed market would adversely affect passengers, saying the opposite is true.

He said: “Taxi drivers do not want fares to go up as that affects everyone, but if there are too many taxis we are not making enough to make a living.

“If there were fewer taxis we could charge lower fares and still make a living.”

source: http://www.spaldingtoday.co.uk/news/business-news/taxi_boss_cap_number_of_cabs_1_3209159

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

And exactly how many extra punters will suddenly appear if restrictions are re-instated?

Or is his thinking that many of the existing trade will disappear?

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IDFIMH

So it's not viable to run a taxi, but ok to run a PH?

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IDFIMH

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IDFIMH

I wonder why he shelled out £30k for his HC?

So instead of Norm saying "I love it when a plan comes together", the council effectively said: "I pity the fool."

That’s exactly right [you two] and follows the well-recognised and accepted economic model of supply and demand.

Too many barrels and they are only a quarter full of apples. But if the apples are two, three or four times bigger than the ‘norm’ then the barrels may become full again.

This is well demonstrated in Oxford, where the HC running mile is one of the lowest in the country. Drivers work regular, normal shift hours, earn a good living wage, punters are happy with the price they pay for the service, so continue to use the service and there is no need to increase fares to the HC mileage rates commonly charged in most parts of the country.

Conversely, in Brum most full-time drivers habitually work 70 to 100 hours a week to try to earn a trace of a living wage. And that’s with most PH firms charging 90 pence or £1 a mile and thereby keeping HC mileage rates artificially low. Earnings are low, with many vehicles in poor condition because drivers cannot afford to keep them properly maintained. The oversupply of licensed vehicles continues unabated in the relentless march to road congestion, illegal plying for hire, over-ranking, blatant over-charging on an increasing scale, general chaos and the total collapse of enforcement!!

Too many licensed vehicles DOES NOT create more punters and thereby more work for PH and HC!!

That is the REALITY!! And it’s NO MYTH!!!

Your philosophy has never made sense!!

But I respect, most sincerely, the right for both of you to believe in nonsense!!

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Kind regards,

Brummie Cabbie.

Type a message, post your news,
Disagree with other members' views;
But please, do have some decorum,
When debating on the TDO Forum.

This is a classic case of "Market Forces" at work.

Whenever a Market is opened up, there will be a period of adjustment, during which too many Suppliers (In this case Taxis) come into the Market.

After a while, the number of Traders will stabilise of their own accord. Unfortunately some of those, who have entered the Market in that initial period, will need to leave it.

There are advantages and disadvantages to this system. One advantage is that anyone, who is willing to take the risk, can enter the Market. One disadvantage is that some will not be able to continue Trading because they are unable to cover their Costs.

On the matter of Antediluvian Cars.

It is up to the Local Council to specify the Condition & Age of all Cars that they allow to use their Plates. How they go about that is in their own hands and will vary from place to place.

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Don't dream it ~ Be it.

Spalding has a WAV only policy for Hackney

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

Has anywhere actually lowered fares upon limiting?

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

“let market forces prevail”. The attitude of councils to spout such comments makes me sick. What “let market forces prevail” means is, drivers who invest in this industry will always be on the limit of survival, always at the bottom, if you start making any money there will always be someone who will want to put another taxi on the road, to take away any benefit you may be getting. There is an election in May 2012, vote in the local elections, vote to remove the councillors that have this attitude towards our trade, these councillors follow government guidelines so vote to remove councillors that are members of Conservative, Lib Dem & Labour who all have the same policy, vote for a party that is for the British worker. Check out UKIP`s policies.

Our council [url]deregulated[/url] 15 years ago the effect has NOT been to lower fares but to swell the coffers of the council all firms are afraid to go out on a limb and set their fares to anything other than the council "default" rate but here we have mainly saloon car hackneys in Spalding they have a Wav policy so I cannot see a 500% expansion of the fleet as we have here although Spalding is also in the sights of the Peterborough Asian community who already have taken over at least one firm so I can see the worries they are all well aware of what has happened in Stamford

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

Anyone can enter? Perhaps after a fortune spent, countless exams and interviews and "Not very qualified" tickets. Once in the trade that looked oh so attractive outside looking in, the free market forces appear to be generally fettered by the local council. Total Tosh!

freemarket forces also don't apply when you have cabbies subsidised by their communities and or family for the "greater good" of their particular community plus loads of drivers here on education visas etc who will work for peanuts anyway

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lack of modern legislation is the iceberg sinking the titanic of the transport sector