Taxi fares up 16%, Would a free market be better? Options

[Bofem]

As our trusty cabbies are plotting a 16% fare rise this year, I wondered whether there's a better way for taxis to operate.

Currently, the council sets the maximum price, but has thankfully removed the restriction on the number of licences it hands out, so I think there's currently 300 or so taxis for W Berks. But they all charge the MAX.

Dig a bit deeper though, and we see that 45% of the fare is for the cabbies' wages, and as running costs appear to only have increased 6% at most, are taxi drivers helping themselves to a 10% pay rise?

Why not operate a free market, where taxis can charge what they like?

[massifheed]

Why not operate a free market, where taxis can charge what they like?

Because I'm pretty sure it would end up like the current situation with petrol prices, where they all charge a high price anyway and just keep within a couple of pence of each other. It wouldn't be much good for the consumer.

[NWNREADER]

As our trusty cabbies are plotting a 16% fare rise this year, I wondered whether there's a better way for taxis to operate.

Currently, the council sets the maximum price, but has thankfully removed the restriction on the number of licences it hands out, so I think there's currently 300 or so taxis for W Berks. But they all charge the MAX.

Dig a bit deeper though, and we see that 45% of the fare is for the cabbies' wages, and as running costs appear to only have increased 6% at most, are taxi drivers helping themselves to a 10% pay rise?

Why not operate a free market, where taxis can charge what they like?

There is a free market - the restriction on the number of licenses has gone and drivers may charge what they wish up to a maximum.

Maybe the drivers are seeing it harder to make their living with so many more cabs?
I suspect an inner circle may make it difficult for anyone to reduce charges. How would they advertise the fact and how much could any one driver reduce and still make up what he/she was giving away?

[Richard Garvie]

I do feel sorry for the cabbies, they are getting hit from all sides at the minute.

[NWNREADER]

I do feel sorry for the cabbies, they are getting hit from all sides at the minute.

That will shove their insurance even higher

[Strafin]

I do feel sorry for the cabbies, they are getting hit from all sides at the minute.

I don't, none of them are struggling are they? The only ones who do make a bit less are the ones who operate only in the daytime. They charge an extortionate amount after 10pm that works out to between £3.50 & £5 a mile to go somewhere locally.

[Richard Garvie]

I don't, none of them are struggling are they? The only ones who do make a bit less are the ones who operate only in the daytime. They charge an extortionate amount after 10pm that works out to between £3.50 & £5 a mile to go somewhere locally.

I agree with you, it costs me £10 or so to get from Newbury Market Place to Henwick. A lot of the drivers that I've spoken to say they are struggling. There are a lot of cabs around, some cabbies reckon they are only getting three of four "jobs" a day. From speaking to the local cabbie groups, they say that the council refuse to speak or work with them.

[Andy Capp]

I agree with you, it costs me £10 or so to get from Newbury Market Place to Henwick.

No point; that burnt down years ago!


I find taxis expensive, but there's only any money for the taxis at weekends and late at night at that. Then they have to put-up with the pi$$ed-up brigade.

[dannyboy]

Maybe they should be self managed?

[dannyboy]

I agree with you, it costs me £10 or so to get from Newbury Market Place to Henwick. A lot of the drivers that I've spoken to say they are struggling. There are a lot of cabs around, some cabbies reckon they are only getting three of four "jobs" a day. From speaking to the local cabbie groups, they say that the council refuse to speak or work with them.

Ah, I see - all the council's fault.

[Exhausted]

Ah, I see - all the council's fault.

Actually yes, it was WBC that grossly inflated the number of cab licences and therefore drove up prices because of excessive competition.

[Andy Capp]

Maybe they should be self managed?

They are!

[Andy Capp]

Actually yes, it was WBC that grossly inflated the number of cab licences and therefore drove up prices because of excessive competition.

Huh?

[Exhausted]

They are!

Only in so far as they have to toe the WBC rules.

[dannyboy]

Huh?

You know, supply outstrips demand, so the prices go up.

[Exhausted]

Huh?

Think about it. 50 cabs all trying for 10 fares. 40 cabs idle not earning twopence between them.

[Andy Capp]

Think about it. 50 cabs all trying for 10 fares. 40 cabs idle not earning twopence between them.

Perhaps the 'idle' ones should drop their prices and put the word out, and they would start to get bookings?

[Exhausted]

Perhaps the 'idle' ones should drop their prices and put the word out, and they would start to get bookings?

Blimey, a bit like the ice cream wars but with the Newbury cabbies.

Still, I'm sure that's a sensible suggestion based on current maintenance costs and last but not least fuel prices.

[Andy Capp]

Blimey, a bit like the ice cream wars but with the Newbury cabbies.

Still, I'm sure that's a sensible suggestion based on current maintenance costs and last but not least fuel prices.

If that is the case then, that would mean even if there was only 10 taxis taking 10 fares, prices would remain the same because of costs, not because of the council over subscribing the licences!

[Exhausted]

If that is the case then, that would mean even if there was only 10 taxis taking 10 fares, prices would remain the same because of costs, not because of the council over subscribing the licences!

You obviously haven't thought this through when those ten cabbies get back, there will be another ten jobs for them With my 50 cabs for ten jobs, they will have to wait through 40 jobs before they get to the top of the pile again. Do you see where I am coming from.

I suspect you are now going to say, what about the waiting customers who couldn't get a cab because all ten cabs were on the road. If you are, forget it.