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Regulatory reform   london story aug 2011
Regulatory reform   london story aug 2011
Regulatory reform   london story aug 2011
Regulatory reform   london story aug 2011
Regulatory reform   london story aug 2011
Regulatory reform   london story aug 2011
Regulatory reform   london story aug 2011
Regulatory reform   london story aug 2011
Regulatory reform   london story aug 2011
Regulatory reform   london story aug 2011
Regulatory reform   london story aug 2011
Regulatory reform   london story aug 2011
Regulatory reform   london story aug 2011
Regulatory reform   london story aug 2011
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Regulatory reform london story aug 2011

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Regulation in taxi business, a LOndon storo

Regulation in taxi business, a LOndon storo

Published in: Business, Travel
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  • 1. Regulatory reform A London story<br />Geoffrey Riesel<br />Chairman & CEO<br />Radio Taxis Group<br />London UK<br />
  • 2. Brief History<br />First taxi in London hackney coach 17th Century <br />“Hacquenée, French term for general-purpose horse 'ambling nag'. <br />1625 - only 20 available for hire, operating out of inn yards.<br />1636, the owner of four hackney coaches brought them into Strand outside Maypole Inn, <br />First taxi rank appeared - established tariff for parts of London drivers wore livery, easily recognisable. 'Hackney carriage' still the official term used to describe taxis. <br />
  • 3. Regulating the Trade <br />1636 Charles I proclamation enabled 50 hackney carriages to ply for hire in London. - Aldermen to make sure number not exceeded <br />After Civil War, 1654 Oliver Cromwell set up Fellowship Master Hackney Carriages -Act of Parliament, taxi driving became profession - 200 hackneys allowed. <br />Act replaced in 1662 under Charles II by new act, required hackney coaches to be licensed - restricted number to 400. <br />1688 number increased to 600, after six years by Act of Parliament to 700 <br />
  • 4. Regulating the Trade <br />1711: 800 licenses issued; then another 200<br />1833 unregulated limits on numbers; no restriction on amount of taxis - only limit - driver & vehicle to be 'fit and proper‘ - condition still applies <br />Makes London licensed taxi trade oldest regulated public transport system in world<br />Rivalry between licensed taxis and formerly unlicensed private hire vehicles has been around as long as the taxi trade<br />
  • 5. 1851<br />“Knowledge of London” introduced Sir Richard Mayne<br />Great Exhibition in Hyde Park - complaints cab drivers didn’t know where going<br />Passing Knowledge - detailed recall 25,000 streets, six-mile radius Charing Cross<br />Location - clubs, hospitals, hotels, railway stations, parks, theatres (including stage doors), courts, restaurants, colleges, government buildings and places of worship<br />Blue Plaques, statues, London curiosities - examinations are one-to-one oral tests currently approx. four years to pass.<br />
  • 6. More recent history<br /> No legitimate limitation on numbers<br />Still an unrivalled standard of KoL(best taxi drivers in world – Hotels.com survey) <br />But deficient administration for many years of knowledge testing has acted as unauthorized barrier to entry<br /> Ageing population less night drivers<br />
  • 7. Ageing population of drivers<br />More taxi drivers over 70 years old (approx. 6.5%) than under 30 years old (approx. 1.5%)<br />London Taxi industry not meeting demand<br />If demand not met someone else always does<br />Lots of examples, New York, Paris, London <br />
  • 8. More recent history<br />Ageing population especially less night drivers – (age demographics)<br />Ageing drivers also keep cabs longer “sweat assets”<br />Adds to pollution more older cabs <br />
  • 9. Could this happen to you?<br />Does your taxi industry meet demand?<br />Private Hire 2nd standard - easy entry<br />Labour force chooses easier option <br />Private Hire in London fills unmet taxi demand – caused by unrealistic barrier to entry <br />
  • 10. London Taxi industry - great Standard Poor administration of the system – artificial barrier to entry<br /> 10 years ago Taxi trade C.24,000<br /> Today Taxi trade C. 24,500<br />10 years ago mini-cabs 30,000<br />Today Private Hire C.62,000<br />Estimates of as many 30,000 touts<br />
  • 11. Threats to taxis-other factors <br />Pricing a consideration in a slow economic market<br />PH perceived as cheaper<br />Taxis over the years serviced most of London<br />PH has all but annexed everywhere in London but centre – now in centre too<br />
  • 12. No shortage of direct competitors to taxi London industry(who flourish when taxi services have gaps)<br />Heathrow Express – (although they are now a client too)<br />Gatwick Express<br />Easy Bus<br />National Express bus<br />London Underground<br />Boris’s bikes<br />Threats to the taxi business - London<br />
  • 13. Inertia in taxi industry <br />Effect on standards – case studies<br />New York – radios banned in taxis, apprehension of increasing medallions – a poor move?<br />Sweden – deregulation meant both opportunities and threats<br />Ireland – Dublin - suicides<br />Limitation on numbers causes damage, industries must grow - in line with demand<br />
  • 14. Solutions<br />Balanced continuous growth – measured against demand<br />Protectionism always fails<br />High Standard of driver entry means pride in job<br />Deregulation causes too much damage<br />Answer for London? - need to modernise and streamline the testing method but keep its standard<br />Radio bans cause more harm than good<br />

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