Minimum Rates Rises Are Key to Taxi Drivers Survival Post-Pandemic

After the most difficult year on record the taxi and private hire industry needs all the help it can get to aid its recovery. With the hospitality and tourism industries being effectively closed for the past year, the main source of income for many drivers has all but disappeared. Many drivers are even reporting that they are not earning enough to cover base costs such as fuel or insurance.  

Waning income has been a dominant stressor for the industry. However, as the economy reopens other issues are starting to arise. Licensing authorities across the nation have been raising their licensing fees for drivers and operators. This is a logical way for them to recoup some of the financial impact they will have no doubt suffered over the pandemic. While it’s an understandable measure, it’s also causing a lot of negative feeling within the industry.  

The second growing issue is the cost of implementing and maintaining Covid-safe measures into their operations. Costs for screens, cleaning equipment and extra valeting all add up to a significant expense. Combined with license fee increases and lost income potential is clear why advocates for the industry are championing fare increases to help mitigate this.  

Fare Increases 

Many localities have not implemented a minimum rate fare increase in over a decade. This is despite other cost of living increases due to inflation or rising fuel costs. As the trade is typically reliable from a fiscal standpoint it has perhaps been easier to gloss over these rates remaining the same in the past. However, this is no longer the case. 

The events of the pandemic and subsequent lockdowns have decimated the taxi trades client base and highlighted how low the rates are in some areas. The reduction in business has been further compounded in some areas by the growth of ride-hailing apps such as Uber. Prior to this year's Supreme Court ruling, Uber were able to offer fares at a significantly reduced price compared to traditional taxi trade models. 

Some local authorities have acknowledged the difficult position drivers and operators have found themselves in and acted accordingly. Glasgow taxi fares have been raised for a second time in twelve months to try and mitigate some of the fallout of the pandemic. Places like Bury and Welwyn Hatfield have both recognised this and committed to a 12% minimum fare rise, the first rise in over a decade. But not all licensing authorities have implemented similar initiatives.  

In a recent article for The Mail, two drivers appealed to South Lakeland District Council for a fare increase. As one of the UK’s biggest tourist destinations, most of the economy depends on visitors for a large portion of their revenue. The Lakes saw over 19 million visitors during 2018-19 and thanks to the pandemic this number has all but disappeared along with potential sources of income.  

The story seems to be similar for drivers across the Lake District and other tourist hotspots across the country.  Drivers in these areas are desperate for their licensing authorities to intervene and raise fares. Without fare rises in these areas it seems that many drives will continue the struggle they’ve had throughout the pandemic. Hopefully, with news that there will be a domestic tourism boom, drivers will be fortunate enough to recoup some of their lost earnings later in the year.  

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