The UK’s #1 Taxi News Source
Edition 17 | September 2020
Over 100,000 magazine reads last month Image: LEVC
MONTH OF
RESTARTS AND APPEALS
UBER & AUTOCAB DR MIKE GALVIN
NEW TAXI DRIVER RESPONDS TO LATEST
TAX CHECKS COULD EARN GOVERNMENT TRADE £65MILLION! DRAMA
EDITORIAL
September 2020 | www.taxi-point.co.uk | 3
SHOULD CABBIES
BE NERVOUS
ABOUT SUNAK’S
BUDGET?
TaxiPoint Chief Editor: Perry Richardson TaxiPoint Editor: Michael Murphy
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As many taxi drivers claim their last Self-Employed Income Support Scheme (SEISS) payment, most will have applauded the support offered by Rishi Sunak. Yes, there have been many that have fallen through the gaps in what has proved to be a complex system, however millions of households have been aided by the Chancellor’s schemes in some capacity.
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However, nothing is free in this world and it may be worth remembering Sunak’s speech to the nation back on 26 March, when he first announced the support measures to the self-employed. Sunak said: “I must be honest and point out that in devising this scheme – in response to many calls for support – it is now much harder to justify the inconsistent contributions between people of different employment statuses.
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“If we all want to benefit equally from state support, we must all pay in equally in future.”
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Reading between the lines, whilst the support package was vital, cabbies and other sole traders are likely to see consequences in the future. If taxes rise, how harsh will the increase be and when can we expect it?
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The next UK Budget is set to take place in autumn when it is expected that plans to start repaying the huge national debt caused by the pandemic will begin. But is now the time for Sunak to announce taxation changes affecting the UK’s 5 million self-employed workforce? Conservative backbenchers have warned Sunak not to burden recovering businesses, but will he listen? Hopefully now proves to be a time of support for historically successful businesses to ensure they thrive once more and in the years ahead once COVID-19 is all but a dream.
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TAX
September 2020 | www.taxi-point.co.uk | 4
NEW TAX CHECKS FOR ALL
TAXI AND PRIVATE HIRE DRIVERS
TO PROVIDE GOVERNMENT
WINDFALL
New tax checks for all taxi and private hire drivers could earn the Government an extra £65million each year according to a new report. The Government have published its latest policy paper which details plans to bring in conditional tax registration (tax check) for all renewed taxi and private hire (PH) applications in England and Wales. Individuals and companies applying for licences to either drive a taxi or PH, or to operate a PH business, will be subject to the tax check from April 2022. The measure also affects licensing bodies in England and Wales that administer those licence applications.
The Government suggests the ‘hidden economy’, which consists of individuals and businesses with Image: HMRC sources of taxable income that are entirely hidden from HMRC, could be worth an extra £65milion new application process with their local authority each year in the taxi and PH industry alone by verifying their unique HMRC code. 2026. The hidden economy tax gap, the difference between the amount of tax that should in theory be collected by HMRC, and what is actually collected, is estimated to be a huge £2.6 billion for 2018 to 2019 across all industries.
Licensing bodies will then be required to signpost firsttime applicants to HMRC guidance about their potential tax obligations and obtain confirmation that the applicant is aware of the guidance before considering the application.
Where the application is not a first-time application, a The new proposal will mean an added step for all new renewed application, the licensing body must, before applicants to the trade, plus those already working considering the application, obtain confirmation from and licensed. Drivers will be asked to complete the HMRC that the applicant has completed a tax check.
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COVID RECOVERY
September 2020 | www.taxi-point.co.uk | 6
TAXI RESTART:
THREE IN FOUR CABBIES SET TO TEST SEPTEMBER WATERS Work levels in the taxi industry have remained low, but there is optimism that September could spark the arrival of more regular work, albeit shared amongst more drivers returning.
There was also optimism in Liverpool as ComCab, the city’s biggest black taxi firm, saw bookings rise by 20% week on week in August when compared to data collected in July.
Karen Long, ComCab General Manager, said: “Some sectors are just surviving, not thriving at the moment. The drop off in taxi business had been at critical levels. With school runs, tourism and hospitality all shutting down, passenger bookings plummeted. The Eat Out To Help Out scheme has been a green shoot in our recovery. And now we can’t wait until September when the schools open and drivers pick back up the Local Authority work According to a TaxiPoint poll, 74% of cab drivers plan that will get even more drivers back on the move.” to get back behind the wheel in September to look As more workers return to their offices and children for work. Self-employed taxi drivers received their and young people return to education settings, there last government support payment in August, so the might just be a light at the end of the tunnel. pressure to earn now becomes more urgent for Data/Image: CMT many. Card payment solutions provider, CMT, reported that the last week of August in London provided a 17.8% increase in the number of payments being made in taxis compared to the previous week. Work levels throughout the remainder of August plateaued with marginal increases recorded.
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OPINION
September 2020 | www.taxi-point.co.uk | 8
COMMENTARY BY:
DAME CAROLYN FAIRBAIRN
CONFEDERATION OF BRITISH INDUSTRY (CBI) DIRECTOR-GENERAL Decisions taken over the next few weeks will shape our economy for a decade.
should be lost. Many people have never worked harder, keeping businesses afloat from their desks and Getting schools back is an essential component. But as kitchen tables. Flexible working is here to stay and important will be building the right environment to get needs to remain an option for many. people back into offices and workplaces. But there are serious downsides too. For young The UK’s offices are vital drivers of our economy. They people, learning face-to-face in the workplace is an support thousands of local firms, from drycleaners to unbeatable way to build skills and confidence. We must not deprive the next generation of this sandwich bars. They help train and develop young opportunity. Not everyone has the space to work people. effectively at home – an ironing board in the bedroom And they foster better work and productivity for many does not make a great workspace. And the mental kinds of business. health challenges triggered by isolation are all too real The costs of office closure are becoming clearer by the for many. day. Some of our busiest city centres resemble ghost There is also the question of fairness. Many towns, missing the usual bustle of passing trade. This employees, from barbers to brewers, have no option comes at a high price for local businesses, jobs and to work from home. We don’t want to see a new communities. divide in our society - between those who can and can’t work from the safety and comfort of their Remote working has been a resounding success for many firms and employees, and none of these benefits homes.
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OPINION
September 2020 | www.taxi-point.co.uk | 9
For all these reasons we need more people to feel it is without financial penalty. safe and possible to go back into their places of work. And we urgently need mass widespread testing – This is why we are calling on the Prime Minister and including in the workplace – to help people feel his government to do more to build confidence around confident and safe. We welcome the Health getting people back into offices and workplaces. Secretary’s recent commitment to a mass testing strategy for 2021. Getting schools open safely is a vital first step to enable parents to go back to work, but they must stay More flexible working is indisputably a good thing for open wherever possible. This means effective test and our economy and quality of life, but we must have a trace, and a focus on resilience. balance. It’s time for the UK to bring its workplaces back to life, or we will look back with regret at the jobs We need government, nationally and locally, to do lost, training missed, and communities harmed. We much more to build confidence in public transport. ask the government to work with business to build They need to shout louder about safety measures in confidence in returning to offices, place, enforce the wearing of face masks on tubes, starting now. buses and trains, and support the introduction of flexible season tickets so people can return gradually
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GUIDANCE
September 2020 | www.taxi-point.co.uk | 10
WHEELCHAIR ACCESS
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‘CORNCERNINGLY THE
SITUATION SEEMS TO BE DETERIORATING’ SAYS ADVISORY COMMITTEE The Disabled Persons Transport Advisory Committee (DPTAC) has published its position on the accessibility of taxis and private hire vehicles (PHVs), highlighting the importance of taxis for disabled people both in urban and rural communities. The DPTAC works with the Department for Transport (DfT), providing advice to the Government on the transport needs of disabled people. According to DPTAC all activities are aligned with its vision statement, that “disabled people should have the same access to transport as everybody else, to be able to go where everyone else goes and to do so easily, confidently and without extra cost”. Their new guidance released in August states: “Taxis and private hire vehicles (PHVs) are one of the most Image: LEVC
popular modes of transport for disabled people after the private motor car. Disabled people use taxis more than nondisabled people despite more of them living in relative poverty. Taxis and PHVs provide a door-to-door service, with scope for individual assistance with the particular needs of a disabled passenger. “They are also one of the services most complained about by disabled people, with regular reports of drivers refusing to carry passengers or provide the assistance needed.
“The Disabled Persons Transport Advisory Committee (DPTAC) believes that taxi and PHV services should be fully accessible to disabled travellers, and this statement sets out our proposed framework for achieving such a service.”
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GUIDANCE
September 2020 | www.taxi-point.co.uk | 12
The expert committee suggest that using taxis and PHV services should be more than a door to door service. Extra consideration should be put on providing drivers the correct training and disciplining drivers whom provide an inadequate service.
by phone or on an app, while others will require a rank or hailed service.
“At present, 58% of taxis are WAVs but only 2% of PHVs. However, they are far from evenly distributed. All 20,000 taxis in London are WAVs, and the The report says: “DPTAC believes that in the modern remainder are concentrated in the major urban areas era a taxi or PHV service is not simply a matter of (82% of WAVs are in metropolitan areas). In many driving the passenger from A to B. The driver needs urban areas of the country, fewer than 5% of the to take active steps to ensure that the passenger is licensed fleet are WAV. safe and comfortable, and provide reasonable “Concerningly, the situation seems to be assistance to enable the passenger to use their deteriorating. The launch of Uber and service.”
other app-based systems for booking PHVs has resulted in an increase of over 4% in the number of licensed vehicles. But they are nearly all PHVs and, in London, there has been a reduction in the number of licensed taxis which has resulted in an The report states: “There should be a mixed fleet of overall fall in the number of WAVs on the WAVs and conventional cars for both taxis and PHVs road. The committee shared concerns regarding the falling number of Wheelchair Accessible Vehicles (WAVs) available to passengers. 58% of taxis are licensed as WAVs, whilst only 2% of PHV are able to carry wheelchairs. Due to the rise of ride-hailing platforms like Uber, the DPTAC highlighted that the number of WAVs are falling in the capital.
in all licensing areas. Although the boundary between taxis and PHVs has become blurred in recent years, for as long as the two forms of licenses exist, DPTAC wants both fleets to meet the needs of disabled people. It’s certainly the case that some disabled people will want to pre-book their vehicle
“WAVs are significantly more expensive to purchase than conventional saloon cars, which is why they are generally only widely available where licensing authorities have decided that only WAVs can be licensed as taxis.”
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JUST FOR FUN
July 2020 | www.taxi-point.co.uk | 23
against two guys from North London. It was on! The arguing went back the earth to suck me up. I took one look in my
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LICENSING
September 2020 | www.taxi-point.co.uk | 14
You would have to have been living under a rock to not know the ride-hailing giant Uber lost its licence to operate in London last November, after ‘several breaches that placed passengers and their safety at risk’ were identified.
Tim Ward, for Uber, said the claim Uber "attempted to conceal or minimise matters" is "completely undefined". Of another allegation, "whether the board was complicit or culpable", he said: "Well, of what?
Uber was due to appeal the decision in July, but the "Our clients themselves are – to put it mildly – strongly court date was postponed to 14 September because of concerned about these proceedings. the pandemic. "The driver photo fraud, you’ll see this is an issue and The company received 27,799 safety-related here the LTDA wants to take issue with the inference complaints in the first six months of 2019 alone, TfL drew about whether it is less likely or more likely according to reports. They had also been accused of this was a case of concealment. allowing drivers to use bogus identities and shared "There is also a reporting requirement upon Uber in accounts, and hiding that from Transport for London relation to safety-related complaints." (TfL). In February the black cab drivers’ group Licensed Taxi Mr Ward said TfL should not be allowed to expand the Drivers’ Association (LTDA) were allowed to take part scope of the allegations against them at this late stage in the proceedings in the appeal. In a pre-trial review at Westminster Magistrates’ Court two weeks prior to the start of the hearing, Gerald Gouriet, for the LTDA, said: "Uber attempted to conceal the photo fraud issue. When that became unrealistic, they covered it up.
"The issues are complex and wide-ranging as it is. I have no doubt legal teams on both sides are entirely flat-out trying to get this case ready for court.
"It’s the concealment – that is the issue."
"It calls the many breaches of licence conditions and that is not something TfL ever suggested.
"It is highly prejudicial for wide-ranging allegations to be made at that late stage.
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LICENSING
September 2020 | www.taxi-point.co.uk | 15
"They have had this decision since February and Uber’s evidence since July. If they wanted to make these wide-ranging allegations it would have been possible for them to be heard in this hearing. "They should be confined."
The court heard Uber will have a whole day to open its case while TfL will take only 45 minutes. Mr Ward said: "The whole first day will be Uber’s opening, the material is dense and lengthy and the issues are complex.
The deputy chief magistrate Tan Ikram said: "Is there a "On day two it will be a relatively short opening, 45 way we can even now come to an agreement? I would minutes, for TfL. At the end of the day there will be 30 rather do it that way and allow you a conversation." minutes of submissions for LTDA. After a 25 minute break in which the lawyers thrashed "There is just one more question I have left. Do you out details, the judge returned and heard there was a have familiarity with the Uber app or would it be consensus. helpful to have a walk through?" Mr Gouriet announced the agreed allegation: "Whether ULL (Uber London Limited) attempted to conceal and or minimise the photo fraud issue set out in paragraphs 7-10 which is should have reported promptly and frankly to TfL. If so to what extent was ULL complicit."
The judge responded, chuckling: "It would be helpful. That’s not to say I haven’t got it somewhere on my phone but, yes." ULL will appeal TfL’s decision to refuse to renew their London Private Hire Vehicle Operator’s Licence on 14 September at Westminster Magistrates’ Court.
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FEATURE
September 2020 | www.taxi-point.co.uk | 16
RESPONDING TO THE LATEST
TRADE DRAMA
ARTICLE BY: DR MIKE GALVIN When the history of the industry (personal transport – taxis and PH) is written, the events of the last month (Autocab/Uber) will warrant a chapter of its own. Not maybe for the reasons that are expressed in the various chat rooms, WhatsApp groups and growing number of webinars but for the way it exposed some very core weaknesses in the industry. None of which are fatal if addressed but if the industry continues to sit around like a boat with no engine bobbing about in a stormy sea then they could easily become so.
market and if you don’t like how your technology provider rolls then you have a choice; stay and enjoy, stay and moan or move. Alternatively if you like a
DEALING WITH THE ELEPHANT IN THE ROOM I have set this section out in an interview style to deal with the questions I have been asked.
Is the purchase (or whatever the deal was) of Autocab by Uber fatal to the industry? In my view it is not. I say this confidently based on the evidence. There are many despatch companies in this industry, it is a healthy and functioning
DR MIKE GALVIN
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Charity
May 2019 | www.taxi-point.co.uk | 20
FEATURE
September 2020 | www.taxi-point.co.uk | 18
provider personally, like a company’s tech, want to be part of their network (Igo, soft merger etc) or find someone cheaper and the price differential is sufficient you can choose to move. At the moment, a theme I will return to, there is choice and frankly lots of it. So if the despatch market persists – no this deal is not fatal to the industry.
very different considerations. Competitors will play a role so you need to think carefully about what they will do. And ultimately what will Uber and the rest of the taxi/PH despatch system world do? Hopefully the rest of the article will assist your thinking and consideration of what you should do for your business as that is what you are paid to do.
Were Autocab right to accept this deal? There THE FUTURE REVEALED seems to be a lot of words, energy and excitement expressed around this subject. All the old clichés are out there ‘sold down the river, ‘Judas’, ‘took the silver’, ‘sleeping with the enemy’ etc etc. Well let’s go back to basics, a CEO’s role is to create shareholder value – that is pretty much it. Now how that value is created opens up a whole world of options, ethics, strategies and approaches. I am not here as an apologist for what Autocab and Uber did but what I passionately believe is that everyone running their own business however small, however big and with whatever potential would do well to a. remember what their role actually is and b. to have their strategy in place to do so and not to be blown off course every week when the next crisis hits town.
Do I have all the answers or even all the questions? No! But dispassionately I have been thinking about what advice I would give to a number of organisations if asked;
If I advised Uber (I don’t)
I’d advise them to make nice noises, calm everyone down and see what is left of the deal. If a significant chunk of customers started to leave I’d advise them to forget charging for the system and give it away free – after all this is rounding in the grand scheme of things. I might Should I move, sue, or stay? Lawyers get rich even advise them to give dealing with angry people – forget suing! Don’t waste loyalty bonuses – if you stay for two years it’s your money, any lawyer with a better house than yours will tell you that you have a good case – forget it free plus you will get £xx’s. I’d advise that this is not a television programme it is you running a they do nothing very cab company with a decision to make. Firstly never much until the dust forget the maxim that every business is only one settles then I would try decision from disaster – a maxim that I frequently weigh against important business decisions. You need and tie operators in for the long term. Lock the to think what is best for your business now, your doors and stop people business in the future and what your strategy is and leaving. None of this is how this helps/hinders it. Dodging the bullet? No! very original and is Different businesses with different strategies at frankly obvious. different levels of development/maturity will have
‘every business is only one decision from disaster’
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FEATURE
September 2020 | www.taxi-point.co.uk | 19
Uber like everyone else needs to work out what business they are in – if they have bought this business to do what they say and they are successful then they should be earning their income from millions of transactions and frankly not from puny despatch system charges from 400-600 companies.
‘forget charging for the system and give it away free’ Next I would advise them to hoover up the rest of the despatch industry. I heard someone say that Uber could not buy their competitors (iCabbi, Cordic, Catalina, Cab Treasure et al) as the ‘monopolies’ people (I think they meant the Competition and Markets Authority (CMA)) would stop it happening… er I don’t think so. Were the CMA not the people who came out quite astonishingly in favour of Uber (Competition Chief Attacks TfL’s Plans to Curb Uber1) don’t expect much help there. Also isn’t iCabbi an Irish (soon to be ‘offshore’) company and aren’t we leaving/left the EU (remember Brexit)? So the CMA has little impact there – if you are in any doubt look at the multi nationals and where they are domiciled and see what the CMA impact on any of them is.
In fairness to the CMA they see their role as protecting the consumer – a free system doesn’t really sound like a misuse of a monopoly does it? Neither do quick cabs! Neither do cheap/free cabs! In any event if you want to build your own system you can, this is not a utility company in a monopoly situation threatening to cut you off, it is technology and there is lots of it and there is nothing stopping you from going elsewhere or doing it yourself or with others.
‘increase commissions to a point where operators can survive but just’ I would then tell them to gradually dominate individual cities and towns. I would advise them to cut fares to free if necessary to either get operators to change to them or send them bust. I would advise them to engineer fares to give drivers on their system bigger earnings, a bigger share of the fare and once they had the supply side in their hands (i.e. connected to their system) jack up prices, carefully and slowly but inevitably increase commissions to a point where operators can survive... but only just. I would also advise them to identify other areas of the value chain that they could take over and remove from operators and drivers – e.g. vehicle insurance, free/cheap cars, credit card handling, accounts, driver benefit packages, and offer them free to take the market. The outcome if they followed my advice and were really successful and as economists say ‘all things being equal’ they would take 100% of your customers and sell them to you for a hefty commission. Your role would be the mucky end of the business recruiting drivers and placating local licensing authorities. Your exit (if you planned one and if you didn’t you should have some kind of plan e.g. pass it onto the kids or similar) is smashed to bits as you have no customers and probably before long even drivers are a mere formulaic management function as they have to work for you.
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FEATURE
September 2020 | www.taxi-point.co.uk | 20
‘...ever heard of deregulation’
don’t advise Uber and they may take advice elsewhere that won’t give them the above outcomes.
But, you might say, all things are never equal and new competitors will spring up offering despatch software but without Uber’s might but... You might say that to unshackle myself I might decide to pay for software. Perhaps but what if Google, Apple and others decide… we can do that? What if the big players (they will come) enter the market offering free systems and put untold pressure on Government to get rid of archaic rules (aka public safety) and enable direct to driver despatch – bye, bye operators? Can’t happen? Have you ever heard of deregulation? Speak to operators in Holland, Sweden, Ireland and anywhere else that has deregulated – it didn’t sound much fun to me. Don’t rely on legislation to keep you in business – politicians are fickle and London is a prime example of that even without legislation the London market was roasted through political influence/interference – it started like most mistakes with good intentions (we want London to be the start-up capital of Europe) and ended with cab companies struggling for survival.
SYSTEMIC WEAKNESSES CAN BE ADDRESSED So what are the systemic weaknesses in this industry that cause its participants to scrabble around for solutions to what are everyday business challenges and problems?
‘the industry is fiercely independent enabling agility, it is fragmented which makes it a harder target’
Before I answer that question could I spend a little time on our industry’s systemic strengths? This industry has been hit with a maelstrom of challenges over the years and has not only survived but thrived. The recent hit, COVID-19, has probably been the worst but even so look at the innovation, entrepreneurship and grit that has seen most companies come through. Now you don’t need to be a Doctor of Business Some are even doing better now than before COVID. Administration to dream the above up. It’s all fairly The structure of the industry is fiercely independent obvious BUT it does rely on everyone in the industry enabling agility, it is fragmented which makes it a rolling over, running around like headless chickens harder target (or had until now) and it is low margin, whilst strategic big business eats their lunch, dinner low cost and requires significant skills to manage a self and tea, and the industry continuing to have no -employed and very mobile workforce. Outside of credible plan to enable self-determination. In fairness I London the disparate and often idiosyncratic nature of licensing is an effective barrier to entry as Uber and
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FEATURE
September 2020 | www.taxi-point.co.uk | 21
effective barrier to entry as Uber and others have seen husband run the business with a few staff you are not – it doesn’t scale easily. These are real strengths going to spend days every week developing a formal within the environment that we frequently operate. strategic plan but maybe now and again you should take time out and look at where you are, where you So what are the systemic weaknesses? To want to get to and how you are going to get there aka answer this I think I need to talk at two levels here – strategy. Likewise while you are doing that just list the micro and the macro. Taking the micro first; down the top three/five/ten things that stop you individual businesses in the industry often do not see doing it and then fix/mitigate them. That’s how small their value. Without being patronising; it’s a lifestyle, businesses get bigger. Bigger businesses should be it’s a dream come true, it pays a decent income and its doing this formally already. The successful ones will mine! That’s fine but the people running these certainly be doing it. businesses have immense and broad skills but don’t To look at the macro – where is the leadership often realise that. They often work very hard their whole lives without realising their worth and the worth of their businesses. In the process they are often engaged in huge personal and financial risk. Gut feel decision making and getting through another day is seen as an achievement and a mark of success. Now if you have eighty or a hundred drivers and you and your wife or
of this industry? Yes there are lots of organisations to help you out with the local council, to get a rank, to stop a rank being taken away and to get a driver’s badge back. They will huff and puff about bigger decisions, the Deregulation Act for example, and try with futility to get well documented and legally formulated decisions reversed BUT where is the
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FEATURE
September 2020 | www.taxi-point.co.uk | 22
horizon scanning? What are we doing to influence the three/five year strategy, who is feeding into the labour manifesto for the next election? Who will stop Uber or anyone else if they decide to get local licensing washed away and enable direct to driver despatch – where in our industry is that body? It’s no secret that it is nowhere. Likewise it will stay nowhere because no one wants to pay for it. By pay I am talking a thousand pounds a month or something meaningful not the odd tenner a month and a heroic £100 if there is a special box rattling exercise to launch a judicial review.
position where it has a clear strategy, where big and small can not only survive but thrive and it develops the infrastructure to project, protect and deliver then every week, month and year will bring further turmoil to an industry that is ill placed to deal with it. Maybe when we talk about consolidation we should talk about institutions merging instead of fighting each other for members and be properly answerable to their members who in turn are prepared to pay proper fees for a proper service.
You will pay your employer’s liability insurance, you will pay your licence, you might even insure your building but when it comes to your business... possibly your most valuable asset (worth more than your house if nurtured properly) you don’t want to pay. Do you know your local MP? Do you speak to the press? Do you involve yourself in the local community? Often the answer is no. That may be lack of time, lack of confidence/competence or a myriad of other reasons BUT big business will. Not only will they, but they are and they are doing it now!
So to return to the original question – is this development good or bad for the industry? Without sitting on the fence… it depends. If you are happy with your lot, if you have no vision to grow exponentially, no exit plan, no hope of longevity and want a third parent I don’t see it will do you any harm and in the short and medium term it may be very good for you. You might get a free/cheap system, more work with no effort and enjoy the rest of your career administrating drivers and placating local licensing authorities.
If you look at the successful industries they all face existential threats from time to time. Some fall by the wayside, some come together and buy the representation and other things that they need to thrive. The Road Haulage Association is a prime example. There are many others.
It could be good for businesses which are on their knees if they need a short term tactical influx of business to get them through the next eighteen months – it could mean short term gain and long term pain but hey survival is good. If they can wean themselves off of the easy money after the crisis maybe its fine.
‘further turmoil to an industry that is ill placed to deal with it’ Our industry’s key systemic threats are; leadership, technology and distribution. People like Riide are in a prime position to take up this mantle but have they got the aspiration, infrastructure, available competences and resources to do so? Has the LPHCA or NPHTA? Has anyone in this industry? I am not here to judge others just to make the point that unless the industry starts to get itself organised and into a
BACK TO THE FUTURE
But what of those who want to grow, to retire to a beach, to buy bigger houses, smarter cars or pass a thriving business onto their kids? It may still have a place if 10% of your business comes through Uber or even 20% then you can still call the shots, unless your competitor takes your drivers because he is taking everything that is thrown at him by Uber. Remember your competitor may not even be in your town – Uber et al don’t have to worry any more about making provision they will be outside of the regulatory regime.
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FEATURE
September 2020 | www.taxi-point.co.uk | 23
The true answer is a simple one – what is it you want your business to do? Where do you want to be in five years? Will this help you or not?
I honestly believe that there is little to show for the money (a fortune by anyone’s standards) that has been spent – customers are fickle SPARE A THOUGHT FOR OUR NEW another promo code from someone else and SILLICON VALLEY FRIENDS they are off. Setting fares to a level where you Whilst we are talking about victims lets spare a can take passengers off the bus and tube in thought for Uber. This is a brave decision, yet another London was never sustainable. What about twist and turn in what appears to be a catalogue of ride sharing – even before COVID that was strategic confusion. What do they do if everyone leaves? Do they buy someone else? Do they give up? going nowhere and now... How many more directions are there to spend billions The UK industry has despite the weaknesses on? Trying to operate at scale in licensing areas with hundreds or very low thousands of drivers is very different to New York, London etc. The secondary cities in the UK are relatively small, people like cash, they already have cheap prices, they are brand loyal, cabs already arrive quickly and drivers know that if they leave an operator they probably won’t be welcomed back.
mentioned above remained resolute and survived and still has 90+% of its customers still using it. I despair every time I sit on a panel and am asked ‘why has Uber been so successful’… if you call this success what does failure look like?
ARTICLE BY: DR MIKE GALVIN Taxi, Private Hire and Mobility Consultant www.mobilityserviceslimited.com
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AIR QUALITY
September 2020 | www.taxi-point.co.uk | 24
POTENTIAL LEEDS AIR QUALITY U-TURN WHILST MANCHESTER CONTINUES WITH PRE-COVID PLANS Hundreds of Manchester taxi drivers took to the streets late August to protest against the imminent licensing changes forcing cabbies into zero-emission capable vehicles. Cabbies in Greater Manchester are concerned that the costs involved to change their cabs to ‘greener’ vehicles will push some drivers out of the industry. Taxi drivers who continue to face unsustainable low levels of work caused by the coronavirus outbreak, converged on the city centre to protest outside the Greater Manchester Combined Authority (GMCA) offices. Alongside the Greater Manchester’s Clean Air Plan, the cityregion’s ten local authorities also agreed last month to collectively develop a common set of minimum standards for taxi and private hire services covering the whole of the area. Standards would cover drivers, operators and vehicles, and plan to go further and greener than the Government’s new standards for the sector by including a step-by-step pathway to reducing emissions from taxis and private hire vehicles.
The ambitious aim is to have an entirely zero emission taxi and private hire fleet across Greater Manchester by the end of the decade. Meanwhile across the Pennines in Leeds, Councillor James Lewis, Deputy Leader and Executive Member with responsibility for air quality, shared an update announcing a review of the council’s
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AIR QUALITY
September 2020 | www.taxi-point.co.uk | 25
plans to introduce a Clean Air Zone in the Yorkshire city.
continue to be paused until the review is complete and we have received further direction.”
Councillor James Lewis said: “As a result of the coronavirus pandemic we have seen pollution levels fall significantly due to the quieter roads. Leeds residents now breathe air that is considerably cleaner and safer than just a few months ago.
However, the potential change of heart from Leeds Council hasn’t been welcomed by everyone in the taxi industry, as the GMB Union says its members are becoming increasingly angry and concerned over the handling of the Clean Air Zone Scheme.
“Coronavirus has led to big changes but, thanks to the GMB Organiser, Andrew Aldwinkle, said: “GMB Union city’s collective action, local air quality has actually fully supports the need for cleaner air for the citizens been improving for some time. of Leeds, but the debacle around the Clean Air Zone Scheme in Leeds is becoming embarrassing. “Many of our buses, taxis, private hire and businesses are now driving cleaner vehicles and we’ve “GMB members have done everything they have been accelerated highways schemes that will reduce traffic asked to do and have been forced into debt to do it. and create more space for cyclists and pedestrians. To be now told that the scheme has been suspended “Leeds City Council is now working closely with central and Is under review is a slap in the face for our government to review the long term impact that the members and all drivers across the city, that have piled up debt which may now have been completely pandemic and these other factors will have on the city’s air quality to understand whether pollution will unnecessary. ever reach illegal levels.
“GMB is requesting an urgent meeting with Cllr Lewis in order to discuss a way forward.
“If the city’s air pollution is expected to stay below legal limits then we will no longer have the support of “GMB will also be looking at any legal ramifications the government to introduce a charging Clean Air should the scheme be scrapped altogether. I Zone. encourage the council to meet with us at the earliest opportunity.” "Given this uncertainty, our financial support will
Image: Ross Campbell
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ROAD CLOSURES
September 2020 | www.taxi-point.co.uk | 26
ROAD HAULAGE ASSOCIATION
WELCOMES U-TURNS
ON “HARMFUL STREET CLOSURES” The Road Haulage Association (RHA) has welcomed the decision by some local authorities to roll back street closures which they believe are “harmful”.
The RHA said: “There was also a problem in South London that has led to conflict between Bromley Council and Croydon Council where road closures Earlier this summer, the UK Government revealed a have led to a significant diversion of traffic. Residents of Bromley have received a letter from £250million scheme to allow local authorities to Conservative councillor Colin Smith, telling them that close roads to cars, and expand cycle lanes – a decision which is having a huge effect on congestion he has begun legal proceedings, seeking to force Croydon Council to remove various planters and and business within the delivery, haulage and the barriers blocking roads.” taxi industries. However, some councils are now having to restore roads back to their previous configuration after residents and businesses across the UK have condemned the closures.
Duncan Buchanan, RHA Policy Director for England and Wales, said: “These closures have added distance and time for many hundreds of local vehicle trips.
The narrowing of roads has meant that many businesses have struggled to receive deliveries, and the implementation of one-way systems has increased congestion.
“We’re seeing increased delays and congestion over a wide area. The gains in terms of walking and cycling are negligible or non-existent at best, and the damage to others, especially working vans and lorries, is significant.
Councils from both Brighton and Edinburgh have already performed U-turns on road closures and cycle lanes.
“I have lived here over 30 years and I have never seen delays like this ever. Croydon Council needs to rethink this anti-mobility stance.”
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ROAD ACCESS
September 2020 | www.taxi-point.co.uk | 27
CYCLING DECLINE CONTINUES Cycling numbers continue to decline after an initial spike during midcoronavirus lockdown, according to latest government figures.
As covered in our previous edition, despite greater measures and restrictions placed on motorists, car usage as a mode of transport has steadily increased over the last three months. In contrast, as lockdown eases and more people return to work or travel to visit friends and family, the cycling boom has been on the decline over the last three months.
GRAPH: Figures are percentages of an equivalent day or week (DfT data)
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TECH
September 2020 | www.taxi-point.co.uk | 28
ROBO-MASK Image credit: LG Electronics
LG BATTERY-POWERED AIR PURIFYING MASK Cabbies will know all about the pitfalls of working with a face covering on during a prolonged shift. However, LG Electronics (LG) plan to give a new meaning to clean, personal air with the introduction of its PuriCare Wearable Air Purifier at IFA 2020. Ergonomically designed based on facial shape analysis, the mask fits snugly on the user’s face to minimise air leakage around the nose and chin. LG say the design also makes it possible to wear the unit comfortably for hours on end. The lightweight 820mAh battery offers up to eight hours of operation in low mode and two hours on high.
Image credit: LG Electronics
purifier allows users to take in clean, filtered air while the Respiratory Sensor detects the cycle and volume of the wearer’s breath and adjusts the dual three-speed fans accordingly. The fans Replaceable filters enable the mask to supply fresh, automatically speed up to assist air intake and slow clean air indoor and out. With its Dual Fans and down to reduce resistance when exhaling to make patented Respiratory Sensor, LG’s wearable air breathing effortless.
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TECH
September 2020 | www.taxi-point.co.uk | 29
LG’s personal air solution comes with a case that helps maintain hygiene between uses. Equipped with UV-LED lights that kills harmful germs, the oneof-a-kind case can even charge the mask and sends a notification to the LG ThinQ mobile app (Android/ iOS) when the filters need to be replaced for peak performance. This is no-doubt one of the first of many advanced face coverings, and if you’re down to work long hours we may well start to see more of them in cabs across the UK.
Image credit: LG Electronics
A SPRAY THAT LASTS
COVID-19 KILLER CERTIFIED TO LAST MIN 28-DAYS ON TAXI SURFACES A UK company, Sirius Technologies, based in Newcastle-Upon-Tyne has launched a new concentrated antibacterial product range: StereX multi-stage disinfectant and BioBarrier system.
impenetrable bio-barrier. With each purchase, stickers are provided to be displayed in vehicles to ensure customer peace of mind.
Available for domestic and commercial use, The system claims to work in synergy to offer long- SterexBioBarrier is applied in a fine mist on surfaces lasting protection against 99.999% contactand can also be used to fully disinfect air transmission bacteria and viruses, including COVID- conditioning units. 19, tested to BS EN 14476:2013+A22019. Image credit: Sirius Technologies Mark Childs, Director said: “We have been making cleaning solutions for a number of years, but the new formula we obtained is a groundbreaking solution to the problems that have affected us and our children, during this COVID-19 Pandemic.”
The product is water soluble, chlorine free and non-toxic, and aimed for public transport like buses, taxis and private hire. It can be used on upholstery, floors, buttons, handles and rails as well as applied to air conditioning units to filter viral microbes and eliminate the spread of bacteria with an
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COVID-19
September 2020 | www.taxi-point.co.uk | 30
CLEARER DISTINCTION NEEDED
BETWEEN TAXIS AND PHV IN
FUTURE COVID-19
MEASURES
Image credit: LONDON TAXI PR
Taxi industry representatives have called for a clearer distinction between taxis and minicabs should any future COVID-19 safeguarding measures be introduced.
minicabs. Licensed taxis in large urban cities are normally purpose built with partitions already installed. Some vehicles also already have contactless payment facilities available and meet 2 metre distancing rules.
The Licensed Taxi Drivers’ Association (LTDA) recently spoke to governmental departments to Steve McNamara, General Secretary of the LTDA, discuss what more could be done to keep taxi drivers wrote via TAXI: “The LTDA took part in a call with safe during the pandemic. representatives from Public Health England, Department for Transport and the Health and Safety Representatives from the LTDA suggested Executive recently to discuss what more can be done that clearer guidance was required to keep drivers, particularly those more vulnerable concerning safe taxi use. This follows to COVID-19, as safe as possible.
widespread industry confusion over whether “We highlighted the need for clearer guidance on taxi and private hire vehicles were included in safe taxi use, face coverings and the need to draw a mandatory facecover usage when travelling. clear distinction between taxis and PHVs. The cab driver representatives also highlighted the need to have separate guidance for taxis and
“We were assured that they are aware of these issues and specifically looking at the latter.”
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FUEL
September 2020 | www.taxi-point.co.uk | 31
AUGUST SEES
THIRD MONTHLY FUEL
PRICE RISE
Petrol and diesel prices rose for the third month in a row but data from RAC Fuel Watch shows they don’t appear to be rapidly heading back to prepandemic levels.
low of just under 106p in May which, it’s important to remember, is still 13p a litre less than it was in January.
“It was good news for drivers that August didn’t see A litre of unleaded rose half a penny in August to the price of fuel jump, especially as so many people 114.88p and diesel by a third of a penny to 118.47p were ‘staycationing’. It was also positive that meaning both fuels are still 13p cheaper than they motorway fill-ups remained more reasonably priced were at the end of January. than they have been in the past with service station retailers apparently not taking as much margin as The supermarkets increased their prices very they have in the past.” slightly with petrol rising by a third of penny to 109.55p and diesel by over half a penny to 114.17p. Williams added: “The short-term outlook for pump prices generally does not appear ominous for UK RAC fuel spokesman Simon Williams said: “Even drivers despite a blip in the oil price at the end of though pump prices have risen for three August. The cost of a barrel of oil rose dramatically consecutive months, August’s increase was slight sparing drivers any nasty shocks when they went to due to fears of a hurricane affecting supplies in the fill up. We had feared prices might rise more quickly Gulf of Mexico, but fortunately there was no adverse impact to production as the hurricane was as people started driving more after the lockdown but so far petrol has only gone up 9p a litre from its downgraded to a tropical depression and refineries were spared massive flooding.”
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VEHICLE
September 2020 | www.taxi-point.co.uk | 32
Image credit: DYNAMO
It was this time last year that the Hackney taxi trade was introduced to a new kid on the block. A new upstart that was 100% electric and future proofed for a modern taxi industry. Yes, we are talking about the Nissan Dynamo Taxi. Whilst Dynamo, a Coventry-based vehicle manufacturer, officially unveiled the black cab to London in October 2019, there was a lone driver testing the very first plated vehicle in the capital. That driver goes by the name of Adam Patrick and the cab he continues to drive faced its first vehicle licence renewal at the end of August. Even with the impact of coronavirus, Adam has found the first 25,000 miles in his new taxi a joy to run both from a driving perspective and a financial one.
Maintenance wise the cab has required just a couple of new front tyres, but nothing else. The taxi was relicensed by regulators Transport for London (TfL), passing with flying colours. From a financial point of view, Adam says he is saving a fortune on fuel. In fact, using home off-peak charging facilities, provided by British Gas, his last 2,800 miles has cost just ÂŁ43.61; Image: DYNAMO
Image credit: DYNAMO
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VEHICLE
September 2020 | www.taxi-point.co.uk | 33
the equivalent of 1.6p per mile. Dynamo, who have taken the highly popular Nissan eNV200 Evalia MPV as a basis, has re-engineered the vehicle into a distinctive wheelchairaccessible taxi capable of carrying up to five passengers.
having to charge up. Recharging in the winter at 3 miles per minute on a 50kWh charger keeps downtime to a minimum.
On the topic of passenger feedback and their recognition of the vehicle as a black cab, Adam told TaxiPoint: “Customers see a yellow light and they see a London black cab. Many of my punters who I pick up are oblivious to the fact they are travelling in a new design London black cab. They just want to get from A to B.
“The more astute punters notice the Image credit: DYNAMO new design, the 100% electric logo and are very excited that London now has a fully “Downtime on servicing is so minimal it is not worth electric taxi. Punters comment that the mentioning, there is so few moving parts, there is so passenger area is a good comfortable size and little to go wrong.” they just love the panoramic roof.” Like most manufacturers and businesses, COVID-19 Adam added: “The economics of the vehicle are amazing. I am now down to less than 2p per mile on a 5p per kWh home night rate. With the 150-mile range in the summer I can do a full 9-hour shift without
has presented challenges for Dynamo. Production slowed due to distancing measures put in place on the production line, but the firm are planning to gear up in October as orders start to materialise.
Image credit: DYNAMO
Image credit: Daimler
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APPS
September 2020 | www.taxi-point.co.uk | 34
WHICH CUSTOMERS ARE MORE LIKELY TO BE AWARE OF AND USE A TAXI APP?
Taxi booking apps have remained popular with customers wishing to travel during the pandemic. With cabs ordered direct to doorsteps, payment on accounts, there are many reasons a customer may favour a booking app, and the process of ordering a cab this way is here to stay. But who is more likely to use and be aware of a booking app? According to a Department for Transport (DfT) Public Attitudes Tracker report published last year which focuses on appbased minicab services, awareness and use vary significantly by age and gender. Men are more likely than women to be aware of this service (85% versus 77% respectively) and to have used the service (31% versus 26%). Levels of awareness are fairly steady across the age groups but drop off significantly for those aged 75+. As you would expect, usage is more common among more tech savvy people aged 45 and under, with at least 38% of the age bracket having used a minicab app. Only 27% of those surveyed aged between 45 -54 had used a minicab and it falls further to just 10% for those aged 65+. While there were no significant differences in levels of awareness by English region, usage of app-based minicab services is significantly higher in London.
In terms of the number of apps used, most app-based minicab users (68%) made use of one app only. Those using more than one app were more likely to be men (24% versus women 16%) and belong to social grades ABC1 which is a term used to describe the middle and upperclass society. Find TaxiPoint on social media
CHARITY
September 2020 | www.taxi-point.co.uk | 36
75TH ANNIVERSARY VJ DAY COMMEMORATIVE TINS DELIVERED TO WAR VETERANS BY TAXI CHARITY To mark the 75th anniversary of VJ Day on Saturday 15 August, the Taxi Charity for Military Veterans delivered specially commissioned VJ Day commemorative tins, filled with sweets and a miniature or two, to WWII veterans. The charity delivered tins earlier this year to commemorate the 75th anniversary of VE Day and received so many phone calls from veterans thanking them for thinking of them during lockdown that they wanted to replicate the idea for VJ Day, for all their WWII veterans including those who served in the far east and are often known as the “forgotten fleet” or “forgotten army”.
Dick Goodwin, Vice President, Taxi Charity for Military Veterans, said: “The Taxi Charity had a commemorative VJ Day tin specially designed for WWII veterans for the 75th anniversary featuring a work by war artist Thomas Dugdale. The tins are being delivered to local veterans by volunteer London Cabbies and the tins for those who live further away have been posted. “With most VJ Day events having to be cancelled, it is our way of letting all our WWII veterans know we are thinking of them on this very important anniversary.” The unique VJ Day Commemorative tin pictured above was delivered to WWII veteran Roy Miller by London Cabbie and Taxi Charity volunteer Silvi Oliveria.
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REGIONAL
September 2020 | www.taxi-point.co.uk | 37
A good Samaritan has been praised by police after he witnessed a robbery from his high rise flat in Newcastle – before using his location to direct officers to the suspects. Police received a call from a taxi driver who reported he had been robbed while sitting in his vehicle in the Shieldfield area of the city.
directing them to the location of two men who were suspected to have been involved in the incident. Chief Inspector Alan Pitchford, of Northumbria Police, said: “This was a fantastic piece of teamwork between police and members of the public that has led to the arrest of three suspected robbers.
“I want to thank the member of the public who He reported that three men had approached him on witnessed this robbery and did not hesitate to contact Shields Street before they assaulted him, damaged his police. Not only did he quickly alert us to the incident taxi and then fled with a quantity of cash. but he stayed on the line and provided updates with the locations of the suspects. Officers were quickly deployed to the area but a resident who had witnessed the robbery from a high “It shows the fantastic community spirit that we have rise flat nearby also contacted police. in this region and shows that residents will not tolerate this type of violence in their community.” The good Samaritan was able to assist police in
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GLOBAL NEWS
September 2020 | www.taxi-point.co.uk | 38
AROUND THE WORLD CHINA DeepRoute, an international self-driving vehicle technology provider, and Cao Cao Mobility, a strategically invested business of Geely Technology Group, have announced the companies’ partnership to advance the design, development and commercialisation of Cao Cao’s Level 4 autonomous robo-taxis service. The autonomous vehicles, powered by DeepRoute’s self-driving technology solution, will be deployed at the 2022 Asian Games in Hangzhou, Zhejiang, China.
Image credit: DeepRoute
AUSTRALIA Taxi drivers in Victoria will benefit from a $22million boost from the Government to help the industry which has been hugely impacted by the COVID -19 pandemic. While making the announcement, Minister for Public Transport and Roads, Ben Carroll, said: “Taxi and commercial passenger vehicles are the only means of transport for some people. Many Victorians still need to access essential medical care and supplies.
RUSSIA Ride-sharing giant Yandex has announced the launch of ‘Yandex Go’, Europe’s first super-app to combine all key aspects of on-demand transportation and delivery. Yandex, a NASDAQ-listed tech company, which operates in Europe, the Middle East and Africa, created the super -app with the aim of offering “a seamless user experience that helps city dwellers simplify their life”. ‘Yandex Go’ will replace the ‘Yandex.Taxi’ app and add on Yandex’s car-sharing service ‘Yandex.Drive’.
“We’re providing a boost to this vital industry to move through and beyond the coronavirus pandemic, keeping drivers and passengers safe and ensuring a strong and sustainable industry into the future.”
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GLOBAL NEWS
September 2020 | www.taxi-point.co.uk | 39 Image credit: SkyDrive
JAPAN SkyDrive, a developer of urban air mobility solutions, has announced that it conducted a public demonstration flight of its new SD-03 flying car model. It was the first public demonstration of a flying car in Japan. The flight took place at the 10,000-square-meter Toyota Test Field, which is one of the largest test fields in Japan and home to the company’s development base. The aircraft has been designed to be the world’s smallest electric Vertical Take-Off and Landing (eVTOL) model as a new means of transportation for the near future.
USA New York’s drone test site at Griffiss International technology to support high-density vertiport operations Airport will now be trialling air taxis, as the possibility of for vertical take-off and landing aircraft. cab-like journeys in the skies continues to move closer. The goal of the research is to develop technology that The research program, which is said to be costing will support safe, secure, resilient and efficient heavyaround $900,000, will develop automation lift cargo delivery and passenger carrying.
SINGAPORE The country’s Multi-Ministry Taskforce have announced they will be expanding the COVID19 testing regime to identified community groups such as taxi and private hire car drivers. The Government has said they will be encouraging individuals from the trade to come forward and utilise the tests being offered. All tests will be free of charge for drivers, with the Government covering all costs.
SOUTH AFRICA With an ongoing deadly feud between taxi operators in Cape-Town failing to come to an end, gun-ridden violence has once again resulted in the loss of life. In the latest incident, one commuter was shot dead and another commuter wounded. A taxi operator was also hit by a bullet, but his condition is not life threatening.
The incident took place at the Belville Taxi Rank, Cape Town, which has been at the centre of violence between rival taxi operators. Police confirmed that one man has been arrested in connection to the shooting. A firearm was also seized.
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GLOBAL NEWS
September 2020 | www.taxi-point.co.uk | 40
RECORD HIGH FOR DIDI AS GLOBAL DAILY TRIPS REACH 50 MILLION Didi Chuxing, a leading mobile transportation and convenience platform, announced that its global daily trips reached a record high of more than 50 million on 25 August, the Chinese Valentine’s Day. The one day record number included trips from DiDi’s ride-hailing, taxi-hailing, Hitch (P2P commuter ridesharing), bikesharing and designated driving services. In April this year, DiDi announced its “0188” 3-year strategy. Namely, by 2022: •
Image credit: DiDi
•
To complete 100 million daily trips globally
•
To achieve an 8% penetration rate in China’s total mobility market; and
To maintain its ongoing initiative to strive for a • future without major safety and security incidents
To serve 800 million monthly active users globally.
Spain A Spanish taxi driver who had repeatedly transported coronavirus patients to a Madrid hospital for free, received a surprise standing ovation by staff at the hospital for his kind actions. In addition to the heart-warming gesture, the driver was handed an envelope containing cash for his wonderful contribution during the COVID-19 pandemic.
Image: LEVC
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September 2020 | www.taxi-point.co.uk | 41
ACCOUNTANTS
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FINANCE
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CARD PAYMENTS
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MEMBERSHIP
APPS
More jobs every shift with your Black Cab app. Join over 17,500 licensed UK taxi drivers already using the app. For more information CLICK HERE
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The LTDA retains experienced barristers with specialised knowledge of the London cab trade. Click here for more information or call: 020 7286 1046
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EV Chargers
Emissions Systems HJS HJS are Europe's leading manufacturers of emission reduction systems for commercial vehicles. Retrofit your taxi to meet EURO VI standards. For more information visit the website by clicking here or phone 01344 566050.
HORIZON SYSTEMS LTD
LEGAL
Horizon Systems Ltd supply and install OLEV home electric vehicle charging points across London, Essex and Kent. Visit www.easyevcharge.uk or call 0800 13 13 057 to find out more.
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Charity
May 2019 | www.taxi-point.co.uk | 20