Motorists should become black cab drivers without having to learn the Knowledge, says Thatcherite Institute of Economic Affairs.Motorists should be able to become black cab drivers without having to learn the Knowledge in the biggest shake up of taxi regulations for 30 years, according to a Thatcherite thinktank.
The Institute of Economic Affairs is proposing a bonfire of regulations and restrictions in the taxi market to increase their number on the roads and slash fares for passengers.
Under the IEA’s plans, it would no longer be a requirement in London for new drivers to spend three years memorising routes around the capital.
The distinction between private hire vehicles – which have to be booked in advance – and taxis – which can be hailed on street corners - would be dropped.
Other changes would see minicab and – rather than just black cabs – being able to wait on taxi ranks for new passengers and drive in bus lanes without being fined.
The main requirement to drive a taxi would a clean criminal record and car insurance to protect the driver and passengers.
The IEA - which was closely linked to Margaret Thatcher's ideas in the 1980s - said new mobile phone apps like Uber had “completely transformed the taxi market and rendered the majority of existing regulations redundant”.
The IEA said the distinction between private hire vehicles and taxis had been “blurred” because cars booked using the Uber app can be booked from street corners.
Mark Littlewood, the IEA’s director general, said: “Current regulation of the taxi market is archaic and needs urgent reform. Much of the new regulatory measures taken have been obvious attempts to obstruct growth within these companies.
“The market must be liberated from overzealous government regulation to allow companies to regulate themselves according to market preferences, and to level the playing field for both taxis and private hire vehicles in a way which encourages competition and growth and to improve service for consumers.”
Last year the number of licensed minicabs and taxis jumped by nine per cent to 242,200, the highest level ever. Two thirds of these – 69 per cent – were private hire vehicles.
The report said this distinction should be dropped altogether: “Before smartphones, apps and GPS there was a clear distinction between taxis and private hire vehicles.
“Taxis were hailed for spontaneous trips and private hire vehicles (PHVs) had to be pre-booked. Technological changes have rendered that distinction obsolete.
“Yet, whilst PHV markets are open and competitive, taxi markets are still heavily protected, with the number of licences capped.
“We should not be supressing the growth of new business models, but lifting restrictions in the taxi market generally, which would lower prices.
“To ensure the market remains competitive, archaic regulations such as quantity restrictions must be lifted and privileges abolished, to establish a level-playing field.”
The thinktank pointed to evidence in New Zealand and Ireland that when restrictions are lifted “consumers have benefitted from shorter waiting times, lower fares and higher quality services”.
The IEA said there were “significant barriers to entry for would-be black cab drivers”.
It said: “Aside from the stringent Knowledge test – which can take up to four years – the iconic black cab sells for nearly £43,000.
“This is almost twice as expensive as a hybrid Toyota Prius, the common choice of Uber drivers.”
It was a “myth that smartphone-enabled apps have created an ‘unregulated’ private transport service”, the IEA said.
“Organisations such as Uber do not just offer transport services, but a set of rules and regulations under which services are provided. Private regulation such as this is preferable to statutory regulation.
“It allows rules to evolve according to the preferences and demands of consumers, and ensures bad regulation does not become entrenched.”
The report concluded: “Deregulation would foster more competition allowing drivers to compete with each other for business; passengers to compete for rides and apps to compete for users”. It said that these changes would be “to the advantage of consumers and drivers”.
Karl McCartney, a Conservative member of the Transport select committee, said: “We need to do all we can to ensure that there is a sustainable future for London's iconic black cabs by helping to bring the trade into the 21st century and create a playing field that recognises their unique and traditional role.”
Steve McNamara, general secretary of the Licensed Taxi Drivers Association, said: “We believe the two-tier system of regulation for taxis and minicabs should be maintained.
“London’s black cab industry provides a gold standard service for passengers and we don't want to see our high standards diluted.
“At the same time, the number of minicabs in London has more than doubled in London over the last two years, to over 100,000, leading to an increase in both congestion levels, and the number of accidents and incidents involving minicabs.
“Failure to strengthen minicab regulations and to allow the industry to "self-regulate" would jeopardise the safety of passengers and other road users.”
A Department for Transport source said “we recognise that technology, booking apps like Uber and those kind of platforms are game changers, and no one wants to do anything that stamps out that kind of innovation and creativity because it is giving passengers much more choice.”
However there were no plans to change the rules so that both taxis and Uber cars were subject to the same regulation, the source said.
A spokesman said: “Taxis and private hire vehicles provide a vital service for many people and businesses across the country, offering them a convenient and accessible option to get around.
“The Government is committed to supporting the industry and ensuring it offers what passengers need with safety as the highest priority.”
http://www.telegraph.co.uk/news/2016/11 ... g-to-lear/
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