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Monopoly fears after merger of Dundee's two biggest players
http://www.taxi-driver.co.uk/phpBB2/viewtopic.php?f=2&t=34625
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Author:  StuartW [ Tue Jul 23, 2019 8:48 pm ]
Post subject:  Monopoly fears after merger of Dundee's two biggest players

As far as I'm aware Tele Taxis and 505050 have been the two dominant players in Dundee for some time now, and now they've merged.

The 20 40 60 mob featured in the 'headhunting' piece last week are a relatively new crew, and I've no idea how they compare in size to Teles and 505050, but at a rough guess I'd say 20 40 60 are a good bit smaller than either of the older two.

But the merger of the big two should certainly help 20 40 60's headhunting efforts, I would have thought :shock:

Anyway, two articles here, the first mainly about the merger, the second about drivers' concerns.


Job losses as firms announce merger to become Dundee’s largest taxi business

https://www.thecourier.co.uk/fp/news/lo ... -business/

A new dominant player has emerged in Dundee’s taxi market after two of the city’s largest cab firms agreed a merger, seeing 12 jobs lost.

Staff and drivers were called to a meeting on Monday morning where a deal that will see City Cabs 505050 and Tele Taxis join forces, to create Dundee’s largest taxi company, was confirmed for the first time.

The move will also mean City Cabs’ 12 office employees, four of whom are part-time, will lose their jobs with immediate effect after being told their roles will not transfer to the new firm.

City Cabs director Jimmy Marr, who will work as a consultant for around six months before leaving the business entirely, said he has already secured employment for six of the staff and is working on finding work for the rest within his businesses.

Mr Marr said: “This deal just makes sense in light of changing technology. I’ve spoken to everyone in the office one-to-one and I think they are happy enough after we were able to find work for them.

“Going forward, we’re just going to be getting everything into place and I think this will mean we can provide a better service for our corporate customers.”

In a joint statement released on Monday, management said the deal would also mean a better facility for local residents.

They said: “The directors of City Cabs 505050 and Tele Taxis are pleased to announce the merger of both companies to form Dundee’s largest taxi company.

“The merger takes place with immediate effect and will provide an enhanced level of taxi services to the public of Dundee.”

“Using state-of-the-art technology and systems, the merged company will continue to deliver tailored solutions to both corporate and private customers alike.”

It is understood no decision has yet been made on whether a new name will be used for the merged business or if it will continue under one of the existing brands.

Dundee Taxi Association chairman Graeme Stephen, whose members include a number of City Cabs and Tele Taxis drivers, believes the deal is unlikely to have a major effect on them.

He said: “It depends on how you want to look at it. It will reduce the choice of companies to work for but at the end of the day, it’s up to taxi operators whether they want to work for an office or not.

“But I don’t think it will make much difference moving from the two big offices to one. If they’re going to be reasonable with the operators and not try to impose any new unfair rules because they have a bit of a monopoly, then it’ll be fine.”

Tele Taxis director Jackie McGouldrick declined to comment beyond the joint statement issued by both firms.


Merger of Dundee’s two largest taxi firms will cause ‘monopoly’ warn worried cabbies

https://www.eveningtelegraph.co.uk/fp/m ... d-cabbies/

Taxis could be forced off the road as a result of the merger of two of Dundee’s largest taxi firms, according to worried cabbies.

A leading taxi drivers’ union rep also said it might also mean that the local authority would be forced to provide more taxi ranks in the city.

It was revealed yesterday that City Cabs 505050 and Tele Taxis are to join forces with immediate effect, creating Dundee’s largest taxi company.

But it’s causing concern among private hire taxi drivers who fear it will create a monopoly and put them out of work.

In the short term, the merger will result in the loss of 12 office jobs, but drivers fear that in the longer term it will force other drivers, who don’t work for the new company, off the road.

One private hire driver told the Tele: “This will create a huge company working out of one office. It will have one phone number so when people phone for a cab they will have more taxis to offer passengers.

“This in turn will result in private taxi drivers struggling to get fares out on the streets.”

Chris Elder, taxi driver rep for Unite, said: “We already have concerns that there’s not enough work for all the taxi drivers in Dundee.

“This will create a monopoly which could mean that private hire guys are forced off the road because they can’t pick up the fares.

“The union will be going to the council to ask them to provide more ranks.

“Surely they see the sense of providing them rather than having taxi drivers cruising round and round the city looking for work and obviously adding to the air pollution concerns.

“Not all taxis currently are electric. I also hope that there is fair compensation for the office staff who are to lose their jobs.”

City Cabs director Jimmy Marr said he had already secured employment for six of the staff and is working on finding work for the rest within his businesses.

In a joint statement released yesterday, management said: “The directors of both firms are pleased to announce the merger to create Dundee’s largest taxi company.

“The merger takes place with immediate effect and will provide an enhanced level of taxi services to the people of Dundee using state of the art technology.”

Author:  StuartW [ Tue Jul 23, 2019 8:55 pm ]
Post subject:  Re: Monopoly fears after merger of Dundee's two biggest play

Quote:
Dundee Taxi Association chairman Graeme Stephen, whose members include a number of City Cabs and Tele Taxis drivers, believes the deal is unlikely to have a major effect on them.

He said: “It depends on how you want to look at it. It will reduce the choice of companies to work for but at the end of the day, it’s up to taxi operators whether they want to work for an office or not.

“But I don’t think it will make much difference moving from the two big offices to one. If they’re going to be reasonable with the operators and not try to impose any new unfair rules because they have a bit of a monopoly, then it’ll be fine.”

But as far as I'm aware the vast majority of Dundee PH cars will be working out of the two, so they're now faced with a monopoly provider, effectively.

Quote:
One private hire driver told the Tele: “This will create a huge company working out of one office. It will have one phone number so when people phone for a cab they will have more taxis to offer passengers.

“This in turn will result in private taxi drivers struggling to get fares out on the streets.”

Don't get the logic here at all. Can't see how the numbers will change, because it's just combining the same number of cars with the same number of customers in the bigger office.

Quote:
Chris Elder, taxi driver rep for Unite, said: “We already have concerns that there’s not enough work for all the taxi drivers in Dundee.

“This will create a monopoly which could mean that private hire guys are forced off the road because they can’t pick up the fares.

This makes a bit more sense because the monopoly situation means that new firm will have the PH guys over a barrel.

Can't seem the 'forced off the road', though, exactly, but wouldn't be surprised if the new firm tried to charge them higher rent, say.

Author:  heathcote [ Wed Jul 24, 2019 12:32 am ]
Post subject:  Re: Monopoly fears after merger of Dundee's two biggest play

Unite spokesman wants to get facts correct,Private hire cannot pick up off streets.

Author:  edders23 [ Wed Jul 24, 2019 6:25 am ]
Post subject:  Re: Monopoly fears after merger of Dundee's two biggest play

Quote:
A leading taxi drivers’ union rep also said it might also mean that the local authority would be forced to provide more taxi ranks in the city.


eh does the merger mean dozens of new hackneys are going to suddenly appear :lol:

Author:  StuartW [ Wed Jul 24, 2019 8:13 am ]
Post subject:  Re: Monopoly fears after merger of Dundee's two biggest play

heathcote wrote:
Unite spokesman wants to get facts correct,Private hire cannot pick up off streets.


Wondered about that, but I took 'on the streets' to mean in the same sense that someone on here might say that LOs should spend more time on the streets rather than behind their desk. So I think that because the main gist of the story was about the office staff, the driver was simply referring to those who work 'on the streets'.

Anyway, that was the PHD's claim, not the Unite spokesman's, but his claim just doesn't make sense either:

Quote:
Chris Elder, taxi driver rep for Unite, said: “We already have concerns that there’s not enough work for all the taxi drivers in Dundee.

“This will create a monopoly which could mean that private hire guys are forced off the road because they can’t pick up the fares.


He then says that as a consequence more rank space would be needed, but surely it's the other way round - if the PHs are binned off, then that means more pre-booked work for the HCs, so spending less time on the ranks...

Anyway, as I said, very much doubt they'd bin the PH off, I mean they're not going to give up the rents just for the fun of it.

Author:  Sussex [ Wed Jul 24, 2019 8:14 pm ]
Post subject:  Re: Monopoly fears after merger of Dundee's two biggest play

The merger could be a bonus for drivers.

If done properly.

Should stop any crazy discounting to get work, and hopefully cut down on staff and admin costs.

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