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Reflections: Issue Issue 22 7 Jul 2011

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Bus, Taxi/DRT, Local Authority, Other, All of UK

Why have so few innovative taxi-based services developed in UK?

1. Attitudes of the Taxi Trade

The taxi trade is a wide and diverse constituency, and includes many small one-vehicle owners who tend to be set in their ways and may lack the entrepreneurial skills to go beyond the standard business model.  Other parts (especially the more unionised Hackney operators in larger cities) have traditionally distinguished themselves from Public Service Vehicle (PSV) operators running buses by their opposition to separate fares and any concept of...

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8 Jul 2011

I should like to point out that this material was developed by myself and Paul Fawcett. Kris Beuret

8 Jul 2011

I suspect this analysis understates the principal reason for the reluctance of the taxi trade to engage in taxibus operation : the financial risk involved in committing resources without the guarantee of financial return. Experience suggests that many taxi operators outside of the major cities would rather hold vehicles on standby in the expectation of a guaranteed return on a conventional booking than commit fuel and driver costs to an uncertain return. Even where capital costs have risen sharply through licensing obligations to provide accessible cabs there is little evidence of a preference to 'keep the wheels turning' by entering new markets. John Hodgkins, Island Solutions Ltd