Taxi Driver Online

Preston taxi firm launches commission-based rent to help struggling city cabbies

https://www.blogpreston.co.uk/2020/11/p ... y-cabbies/


Image: Blog Preston

A Preston cab firm has introduced a commission-based fee for their drivers because of a general decrease in trips caused by coronavirus lockdown.

With minimal movements of the people due to pubs, clubs, restaurants, shopping centres and other businesses being shut down, cab businesses are also hit hard by the lockdown meaning fewer trips and resulting in cabbies struggle to pay their weekly ‘rent’.

But Ashton Allied Taxis has gone a different route to address the issue.

Mr Usman who runs Ashton Allied Taxi, said: “Lots of drivers were complaining of the lack of business.

“It did not make sense, us, charging them a fixed rent when there was not much going on out there. We can only justify our rent to the drivers if there is enough work out there.

“Unfortunately all sorts of activities have stopped because of the lockdown. Other firms have slashed their rent by a small margin but their drivers are still not happy so I had to introduce a system acceptable to everyone and fairer on every one because I respect my drivers.”

Zahoor Afridi, who works for Ashton Allied taxi said: “We have lost 70% of the business. With this new system, now I do not have to worry about company fee whether I work a day or the whole week.

“I am free from my financial obligation of paying a fixed weekly fee. It is a fair system and should continue even after the pandemic.”

Another driver Mr Manzoor said: “There is still a minimum fee under this system but the commission-based rent is much better system. It is a timely step in the right direction because of the financial turmoil that we are going through now.”

Other firms in the city have also slashed their rents to make it proportionate to the decreasing number of trips.

Millers taxis who charged £130 previously are now charging £100.

AAA TAXI are £84 compared to their full £120.

New City VIP Taxi are charging £40 only compared to their full normal rent of £120.

I assume that office is mixed fleet, and that that HC isn't sitting there as a wind up


Bit of a disparity there

I tried that many years ago and regretted it although we weren't running a computerised dispatch system then.

It leads to arguments because the calculated fares on such systems don't always correspond with fares charged so someone will have to check every fare and enter it on the booking unless all fares are quoted and the quote is what appears on the booking record.

They are better these days but no booking and dispatch system can calculate a metered fare completely accurately

_________________
lack of modern legislation is the iceberg sinking the titanic of the transport sector

Maybe they went down the commission route as they are losing drivers to Uber.

That said I've always thought firms that charge a %, rather than a fixed fee, have more of an incentive to get more work for their fleet.

_________________
IDFIMH