Hackney carriage and private hire fares

[Drsatan]

Good evening,

I'm aware fares for hackney carriages are set by the local authority in which the vehicle plies for hire, but fares for private hire vehicles are largely unregulated and are set by private hire operators.

Would it not make sense for both fare types to be set by local authorities in the interests of protecting workers' rights? There are numerous articles about private hire operators (like Uber, Bolt, Addison Lee) engaging in a "race to the bottom" by slashing fares. Consequently, drivers are forced to work longer hours in order to make ends meet. Regulating private hire fares would also stop Uber surge-pricing fares.

I'd be interested to hear other people's thoughts on this. I've read on Twitter that Uber drivers will reject fares for jobs that are too low or require lots of dead-mileage to meet.

 

[danm14]

Unless a "minimum fare" was introduced, along with a prohibition on offering a discount (which would be horrifically unpopular) I'm not sure how this would prevent a race to the bottom.

For information, Uber get around maximum fares in Northern Ireland by licensing their cars as Class C taxis (limousines) whose fares are unregulated, allowing them to use surge pricing.

 

[Alfonso]

Mandating higher fares doesn't really fit with government belief that the market will find a more efficient way to do things. Surge pricing is designed to increase the attractiveness of driving for Uber leading to increased supply, which is also good for customers. Mandatory cheap prices make it attractive for customers but unatractive for drivers, resulting in fewer taxis, mandatory expensive prices vice versa

 

[BoroAndy]

The problem with Uber and others is that they operate as one company but licensed in numerous local authority areas. So to have regulated rates for private hire, how would it work for them? Prices in various areas are higher/lower dependent on the wealth of the area. Many people use Uber out of laziness in finding out about local private hire companies, and probably pay over the odds as a result.

 

[miklcct]

Private hire fares should not be regulated as these are pre-booked where customers have negotiation power.

 

[Drsatan]

Thanks for your replies everyone.

My thoughts are that there should be a price floor to stop a "race to the bottom" in the private hire industry. The App Drivers and Couriers Union (a trade union for PHV drivers) says in London that the minimum PH fare should be £1.25 a mile (probably more than that now due to the rise in petrol prices) to ensure PH drivers do not have to work excessive hours to make a living. I've read quite a few stories on Twitter of PH drivers having to work 80 to 90 hours a week just to make a living. That is clearly exploitative. Driver fatigue is a big contributing factor in road accidents.

This should also be in hand with a cap on PH vehicle numbers - some local authorities like Rossendale issue loads as a nice money earner.

Private hire fares should not be regulated as these are pre-booked where customers have negotiation power.

Does that happen today? I've heard about this when PH was largely unregulated in London. I've been in a few PH vehicles and I've always paid what the meter says at the end of the journey (this is usually an app on the driver's smartphone).

 

[chesterred16]

The App Drivers and Couriers Union (a trade union for PHV drivers) says in London that the minimum PH fare should be £1.25 a mile

They've got no chance - road hauliers, with their relatively strong industry bodies (RHA and Logistics UK) struggle to get those rates

 

[Bletchleyite]

This should also be in hand with a cap on PH vehicle numbers - some local authorities like Rossendale issue loads as a nice money earner.

Absolutely not. Customers should not be inconvenienced by having artificial limits on numbers of vehicles. That element of the market manages itself, because if there are too many drivers for people to make a decent living, they'll pick a different line of work or go and hang around in a different place to get business.

A minimum rate is a more interesting one (a bit like minimum wage) but I wouldn't want it set per-mile because that would remove the option for innovation e.g. flat fares, zonal fares etc. Perhaps there should be a legally defined interpretation of the minimum wage so it is clearly possible for the drivers to earn it after expenses without working in a dangerous manner. What there should absolutely also be is that tachograph style hours rules applied to coach drivers should be applied to all professional motorised road use without exception (including couriers, taxis and even simple business travellers) - too many taxi drivers and couriers work hours that leave them dangerously tired. Again, if that makes the profession less attractive it will self-manage by people switching to other jobs or moving to drive in different, underserved areas.

 

[Glasgowbusguy]

Private hire fares should not be regulated as these are pre-booked where customers have negotiation power.

Not really especially now in Glasgow where the 4 big private hire companies have all merged leaving you with no choice