Taxi Driver Online

Taxi wars loom as licensing chiefs let minicabs cut fare


TAXI wars are set to break out in Edinburgh after minicabs were handed the right to charge lower fares than their black cab rivals.
The city's biggest private hire firm will be able to change its meters and undercut its competitors by up to 30 per cent following the ruling by licensing chiefs.

It could open the floodgates if other firms, including black cab companies, follow suit.

Today critics branded it a "recipe for disaster" which could result in more than 800 different tariffs being charged in the city.

But the company in question, Edinburgh City Private Hire, said it hoped to provide a shot in the arm for the trade by "driving down fares".

Kevin Woodburn, a director of the firm and the chairman of the Edinburgh Private Hire Association, said he was glad the council had not listened to "scaremongering" from the black cab trade.

He said: "There's been quite a bit of spin put on what we're trying to achieve, but the public are not stupid and the choice will be theirs. We have different prices for different bus companies and for different airlines, so why not?

"We've felt for a long time that the fares in Edinburgh are excessive and would rather offer more value for money. There's a huge market for taxis in this city and this is only the tip of the iceberg.

"We want to be able to drive down the fares even further – that can only generate more work for the whole trade."

The company asked the council for permission to reset the tariff on the meters of its 450 vehicles to allow the company to offer a discount of up to 30 per cent.

The move raised objections from two black cab firms, Central Taxis and City Cabs, who argued the move would lead to "confusion" among passengers, but councillors yesterday gave the go-ahead on a trial basis.

While only Edinburgh City Private Hire have so far applied to be able to charge a lower tariff, other firms could now follow suit.

But a spokesman for the black cab trade said: "This is a recipe for disaster. It sounds farcical, but you could end up with over 800 tariffs in the private hire trade. Customers will automatically assume that someone somewhere down the line is ripping them off.

"I also feel sorry for all the hard-working men and women who work for this company who are going to see a 30 per cent pay reduction forced on them."

Taxi firms can already offer reductions to passengers at the end of the journey, but this is the first time a firm has been allowed to set their meters at a different rate.

Councillor Colin Keir, who chairs the council's regulatory committee, said the scheme was being considered a "test".

He said: "There were concerns about how this would work. We accepted the idea, but for a period of a year or less. If there are any problems, then we can bring it back to have a look at it.

"The big thing for us is clarity. If there is a mass of complaints, then we will have to look again."

Should private hire firms be allowed to set lower fares than black cab firms?

Sally Gray, 25, painter, Stockbridge: "Yes. I think competition is healthy."

Alexander Alexander, 81, retired postman, Calder Gardens: "If I was a taxi driver I would think it was unfair, but it'll suit me if it's cheaper."

Moray MacWhirter, 63, retired lawyer, Bruntsfield Place: "Yes, there should be competition and with black cabs this doesn't exist. I'd be for it."


http://news.scotsman.com/scotland/-Taxi-wars.5722145.jp

This is the straw that broke the camel's back.

I now one company in dundee who are going to jump on the band wagon.

Very sad day for the scottish taxi trade

Welcome to my world, and it will destroy the game as you know it, not only will you lose trade to them, you'll also eventually be known as the rip off cabs as well, add in the cars that will become hacked out wrecks in no time where drivers chase the 30% they were already getting before this came in.

Go down the council and offer to become chief LO and say you'll do it for 30% less than what the current bloke gets, see how he likes it.


When are ppl going to realise ppl get a taxi cos they need one, they don't get one cos it's cheaper, or because it's such a bargain they just have to go for a ride, and wait until the barons set up, advertising for drivers in Eastern Europe because nobody local will want to go cheap, I'd say this decision will eventually change your city forever, and not for the better either.

800 tariffs
There should only be 3 day, night and Christmas and new year

I have watched this story progress over the last couple of weeks and I have thought what a con the whole thing has been. Everybody on these boards and indeed in the Taxi as a whole know that the Meter fare is the MAXIMUM charge you can make. it is not compusory. The private hire firm in Edinburgh only had to advertise they were offering a 30% discount on the meter fare. When a driver had a ten pound fare he just says, "it should be £10 as you see but today its only £7, thanks for your custom" Job done.
Instead there has been protest, anti protest, protest and mud slinging all of which has promoted the Private hire firm involved to all of Scotland. What a smart move.

All that free publicity

Isnt this what is known as a "Free Market"? Isnt this exactly what the OFT wanted, along with competition and de-limitation?

We should all calculate what we have earned this week and then deduct 30%.

However, of course, if the ph trade increases by 30% + then it may be smart business move.

But then there may be a company who reduces by 35% or 40%.

I also wonder what they will offer their account customers is they already offer a discount.

This will be a very good story to watch.

You can never win a price war...you can only hope to survive one..

And when the fare is £7.90 he says "it should be £7.90 as you see but today it is only £6. erm £5. erm have you got a calculator mate erm Hang on a minute I will have it soon............................"

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Grandad,

Edinburgh is not the only places this has happen.

Ph’s can charge whatever they want there are not tried to a tariff, only the hack's are

If a company knock a £ off or 2, there’s nothing can be done

the trade has long gone long time ago IMO

Ahh, something Jeckle wrote has reminded me of another thing that will happen, you'll end up with ONE PH office eventually, one will grow and the others will wither to be picked off cheap, then the service level drops off and there's no more handy cab firm around the corner to just walk into, drivers become unhappy robots and eventually the old driver is replaced by uniform wearing yes men.

Prime example, would you drive 60 miles for £40? they do here, MUGS!!!!

Haven't they always had that right, just chosen not to use it?

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IDFIMH

That's their plan, and I think they have got a good chance of success.

The only problem that firm will have is if someone loses loads of work and decides they need to knock 35% of the council's set rate. Then the original firm might need to go to 40%.

But the biggest losers will be the black cab radio circuits. Why would their big accounts stay with them unless they join the discount road show?

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IDFIMH

oh dear, are hacks doomed?

course not, i cant rank up or take a flag down, so enjoy it, and all my fares are quoted for, sorry but thats the way it is, or should i quote hack meter rates and get no work??....

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Of all the things ive lost, i miss my mind the most