Taxis told to 'put their best foot forward' as Uber takes on the English Riviera
Torbay taxi drivers may have to cut their prices if they want to compete with Uber drivers on the English Riviera, according to councillors, who have stressed that the new tariff is a maximum charge.
Torbay’s taxi drivers have been told they may have to cut their prices if they want to compete with Uber drivers on the English Riviera.
Torbay Council’s cabinet has rubber-stamped a request from the local taxi trade to increase the amount drivers can charge for rides in the bay.
But councillors have stressed that the new tariff is a maximum charge, and there is nothing to stop taxi firms from charging less if they want to compete.
California-based Uber operates in around 70 countries and 15,000 cities worldwide. It is the largest ‘ride-sharing’ company in the world with 10 million active drivers and couriers.
While it does not directly subsidise its drivers, it does use financial incentives, bonuses, and earnings guarantees. Uber started operating in Torbay earlier this year.
A report to the committee said a balance needed to be struck between the needs of the taxi trade and the public’s desire for a safe and affordable service.
The cost of vehicles has risen as have maintenance and fuel costs, and the meeting heard that unless fares kept pace with inflation potential drivers would be discouraged from entering or staying in the trade.
Daytime and early evening fares can rise from November 4 by 4.6 per cent, while nights, Sundays, Bank Holidays and Christmas fares can go up by 3.8 per cent. It will be the first increase for two years.
The two additional tariffs for vehicles taking five to eight passengers show a larger increase.
The report sums up: “It is considered that the proposed uplift will assist those taxi drivers licensed through the council to face the rise in fuel costs and other cost of living rises and support Torbay’s taxi trade to make a viable living, therefore reducing the number of drivers leaving the trade for better remunerated work and encouraging consideration of investment in newer environmentally friendly vehicles.”
There are currently 188 Hackney carriage vehicle proprietors in Torbay and 549 dual licensed drivers who can drive a Hackney carriage or private hire vehicle. A council consultation on the proposed increase in fares attracted just two responses, both opposing the fares increase.
Answering a question about Uber’s arrival in Torbay, Cllr Alan Tyerman (Con, Churston with Galmpton) said: “We are not setting a rate that has to be charged, but a maximum rate.
“People are entitled to charge less if they want to.”
And Cllr Adam Billings (Con, Churston with Galmpton) added: “The market mechanism exists for those competing for business, to allow them to put their best foot forward to compete with Uber.”