Dusty Bin wrote:
Brummie Cabbie wrote:
I don't know what the cab rental price in Oxford is but let's say it's £10,000 a day!!
If drivers are paying that price and taking £20,000 a day clear, then it is worth their while.
If they are taking £9,000 a day clear and still have to put an extra £1,000 a day towards their daily cab rent, then it's not worth their while.
Market forces? You bet!!
As for the price of a plate in Oxford; that only shows that there is an economically viable business in the cab trade in that city.
Bullocks, rudimentary economics dictates that the advantage accrues only to the plateholder, unless someone buys the plate and the cartel tightens thereafter.
Your method creates cartels!!
And the way it works is this [and it's been happening in Brum quite rapidly for a decade or so].
Too many cabs, so owner/drivers cannot earn a living wage.
But the cabs still need maintenance, so off they go to a 'taxi garage'.
The work is done, but the cab needed more work than the owner expected and cost, let's say, £800 instead of £500 expected ny the owner.
The owner pays the 'taxi garage' the £500 which he has and the very nice 'taxi garage' owner puts the rest on the slate because he knows times are hard.
Now the owner is £300 in debt, pay off let's say £120 of the debt before his next service is due.
Now the service costs whatever, but again the owner is let's say £270 short of the bill and again the very nice 'taxi garage' owner puts it on the slate and the owner is now £450 in debt to the nice 'taxi garage' owner.
This scenario keeps reocurring until 18 month, perhaps two years down the line the cab proprietor now owes the very nice 'taxi garage' owner just short of £2,000 for repairs that he could not afford and did not have the full amount of the bill for.
Now the 'taxi garage' owner isn't so nice and with the cab only worth £4,000 tops, informs the cab proprietor that his garage business is having cash flow problems and needs the outstanding balance within the next 28 days or he will have to take him to the Small Claims Court to recover his debt.
But the very nice 'taxi garage' owner now offers the cab proprietor a way out of his predicament and proposes to buy his cab and plate for £2,500 in cash, write off the £1,870 of repair debt that has built up, for a cab and plate that is worth £4,000 at best. And he offers to rent the cab back out to the cab proprietor once he agrees to the sale.
And that’s all because cab proprietors cannot earn enough to pay for repairs, because of derestriction policies.
The build-up of plate portfolios by plate barons is directly attributed to derestriction.
In a restricted or sensibly controlled plate issue situation proprietor can earn enough to pay for the service of their vehicle and thereby escape the above scenario.