Taxi Driver Online

Well we could discuss this for weeks without any useful purpose (and it would be interesting to actually see the formula in all its complexities written down) but like reading council reports and the like generally, maybe life's too short.

But in general terms, for a cost-based approach to fare-setting, then obviously the more *specific* the numbers involved the better - after all, index/inflation numbers are just generalisations used for various purposes, whether in terms of prices generally (what's usually reported as the headline 'inflation' figure), or more specific indexes, such as house price inflation (or, of course, deflation in that it's not unusual for house prices to go down).

So the AA figures were simply about motorists' costs inflation, and not specific to the cab trade.

The likes of licensing fees are relatively easy, since they're decided by each council, and each council in turn sets the fares.

But, as you say, we all have different costs, and if the methodology was taken to its ultimate conclusion then the council would set different fares for every driver

Which is obviously unrealistic.

Well indeed, and if fares just based on *costs* to the trade, then that wouldn't work too well. If trade had to replace old bangers with £60k ULEVs overnight, then I doubt if it would be realistic just to raise fares accordingly to recoup the cost.

Which in turn actually highlights a major shortcoming in setting fares based purely on costs - it's like saying that no-one in the non-trade world should ever go out of business because they could just increase their prices.

Which in the real world doesn't work, obviously.

How long you been on TDO?

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IDFIMH

But other than fees and extra insurance what other motoring costs do we have that Joe Public doesn't?

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IDFIMH

Well my initial point wasn't so much criticising the AA figure as saying that the BoE figures were a pure substitute

But since you ask I think the main shortcoming with the AA's figures was that they were based on relatively new, low mileage vehicles, which didn't really reflect the average motor in the trade.

And that's even ignoring purpose built taxis, like those in Derby

But obviously as regards things like fuel the AA figures were ideal, since the trade pays the same as the public, and except for a few at the extreme there's not so much in the way of regional variation.

Fair point, but you have got to start somewhere.

And as it always favoured the trade it was never an issue we took up with the council.

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IDFIMH