Fares set to rise as trade hit by growth of taxi apps
Political Correspondent THE rise of app-based firms, such as Uber, has forced plans for a fares rise for hackney cabs in Glasgow as owners struggle to meet costs.
Taxi users face a fares rise as councillors are asked to approve an increase this week.
According to an independent report, firms such as Uber have caused traditional black taxis to take a hit in trade and taxi owners are finding it more difficult to meet the cost of putting a cab on the road.
Despite the costs for fuel, insurance and maintenance dropping and other costs such as licensing remaining static it is recommended that the tariff should be raised by 2.5 per cent.
It will mean the minimum fare for flagging down a cab will increase from £2.80 to £3, and changes to the fares for the remaining distance and time spent in the cab.
Drivers’ earnings are the only item identified in the basket of costs that have increased in the 12 months analysis, by around £1,600.
The total cost of putting a cab on the road is estimated at £33,900 a year.
The impact of app-based operators such as Uber moving into the Glasgow private-hire market has increased competition and led to hackney cabs seeing a decline in the number of miles they are occupied in hires.
Fares of between one and 10 miles will see an increase of either 20p or 40p.
The report by an independent review body Taxi Research Partners recommended the 2.5 per cent increase.
It stated: “In drawing this conclusion, it is also important to note that the market for taxi services in Glasgow has changed and will continue to change as a result of the emergence of app-based operators in the industry.
“This is a fundamental and irreversible change that has, and will continue to, result in changes to the numbers of trips and distances travelled with a passenger, which will in turn impact on the ability of a taxi to operate commercially.
“Current trip data suggests a decline in the numbers of live miles operated by a typical Glasgow taxi.”
Stephen Flynn, chairman of Glasgow Taxis, said it is not enough of an increase to make a difference either to passengers or taxi owners.
He said the rise was in the initial fee – the minimum on the meter – which he said brings taxis in line with private-hire car firms.
He said: “If it goes ahead it is the first rise in two years and will be taken up by other costs like credit card charges and garage fees.”
Mr Fynn agreed new entrants to the market have had an impact, but don’t necessarily benefit passengers.
He added: “Without naming any firm, app-based companies have come in and can throw money at the business.
“Then they hit you with surge pricing.
“These firms have taken probably around 10 to 15 per cent from taxis and also the private-hire businesses in trade. We are asking for an equal playing field.”
Other costs such as extras for additional passengers, unsocial hours and public holiday fares will remain unchanged under the proposals.
The taxi rise proposal is the latest transport increase for passengers this year
This month the Evening Times reported how train operator, Abellio Scotrail, and bus firms First Glasgow and McGill’s have increased fares for service in the city.