TAXI INDUSTRY FACTS
AND SECRETS
This blog uncovers some of the aspects of the taxi/ride
sharing industry that consumers may be unaware of. How do I know some of these
things? I have been driving for two different companies for around 6 years both
night and day shifts, both quiet and busy shifts driving WATS (wheelchair accessible
taxi) and sedans. I won’t claim I know or have even heard of all the tricks but
I thought this may be an interesting blog for some people to read from the
perspective of a cabbie. There are a couple of things I will not disclose
though in case the wrong people read this blog.
Ubers Different
Revenue Methods
Interesting times in 2016 have seen different state
regulations relaxed to give Uber a foothold into the market as a direct competitor
of the existing Australian Taxi Industry. Uber the ride sharing service has drivers
receiving trips from an app with the majority of the fare going to the driver
charged from passenger’s credit cards. From the beginning government regulation
was no contest for big businesses, Uber even paid large fines that drivers encountered
early in their running days issued by Government department officials. This was when Uber wasn’t legal, to help keep the service
going. When competing on a shift against taxis and other Uber drivers, drivers
on a shift are also taking cash jobs from those waiting at taxi ranks or by running their
own agenda from the handing out of business cards building an ‘off the record’
customer base. Its good news for consumers particularly for passengers going
longer distances that would usually pay quite an expensive fare in a regular cab.
Uber benefit mostly during surging peak times taking both app and cash jobs. During
quieter periods a rate of under 10 dollars an hour is well expected.
Uber Issues
Ask any limo driver how hard it is to keep a hire car in a
condition that the customer expects. People can be smelly or dirty or have food
or drinks in hand that they will sneak on even if you tell them not to. Some
will try to smoke or play with lighters. Others will graffiti the back of
seats. Vomit and urine are common as well from the sick or intoxicated. Heeling
or heel stub is not a word a limo driver wants to hear. This is a term referred
to when a women digs her stilettos into a seat as she is being pleasured. This
happens a lot on the way back from a wedding reception. Will the driver cop the
cost of a punctured seat or try to patch it up himself and risk making his Uber/hire
car look cheap? Uber customers expect a high standard at a low cost. Uber
drivers may spend many hours of work each week to keep the interior and
exterior of the car clean and shiny and that is something taxi operators don’t
have to be as concerned about. Other issues with being an Uber driver other than
having to keep a vehicle in top condition are fuel and mechanical maintenance costs,
customer false or unfair ratings, competition of other start up Uber drivers
and low pay at times at low demand periods especially from distance fares. Oh and then there is rapid depreciation of the vehicle.
At this stage in late 2016 it has been estimated that Uber
have taken 30% of the ride sharing market. These estimations are based on taxi driver’s
reductions and taxi fleet operator’s businesses total monthly takings from
their fleets.
Taxi Services Facts
and Secrets
Taxi companies vary in the different services they provide.
The combinations of vans equipped with wheel chair facilities that can also
seat 10 passengers and station wagons equipped with wheel chair facilities as well
as standard sedans and up to 9 seater people movers. City drivers must complete
a course to become competent as well as fulfil police and identification checks
and pay a fee to qualify as a driver in the Australian cities. Country regional
drivers only need to fill out forms, pay a fee and fulfil police and
identification checks. City Taxi services usually have a high percentage of
Indian, Pakistanis and Bangladesh drivers. Country taxi services are
multicultural employers but tend to have a high percentage of Australian Caucasian
drivers. Most services run off an efficient computer system that is controlled
by a base allocating jobs through a ranking and positioning system. Some
country services have drivers handle their own incoming calls and allocate jobs
to a ranking system and positioning strategy where if there is a closer driver
near to a new job, that driver will take that fare over the 1st
driver waiting back at the rank.
Taxi drivers usually work an average rate of around 10
dollars an hour when quiet shifts with long hours without any fares/work are
taken into consideration.
Taxi drivers use a meter to manage fares with different tariff
rates depending on times, public holidays and the number of passengers. Some
taxi meters today in sedans are adjusted automatically and can’t be adjusted by
the driver manually. Vans and other people movers (passengers 5 or over) have a
manual meter with the driver being able to set the meter from tariff 1 through
to tariff 7.
TARRIF RATES FOR
TAXIS IN COUNTRY N.S.W
Tariff 1
|
Normal day time rate, 6.00am-10.00pm
|
Tariff 3
|
Sundays and public holidays, also night time rate 10.00pm-6.00am.
|
Tariff 5
|
5 or more passengers, normal rate time 6.00am-10.00pm.
|
Tariff 7
|
5 or more passengers, night time rate, 10.00pm-6.00am.
|
So a taxi driver in control of what tariff he can set fares
at can ultimately set any tariff rate at any time. Passengers would be advised
to be diligent and check the meter to see what tariff rate they are being
charged as drivers unwillingly may have forgot to adjust it or may be ripping
customers off intentionally. A sedan has only two tariffs to choose from
whereas a maxi or people mover can choose from up to four different rates (see
table above).
Other Concerns in the
Taxi Industry
Taxi drivers in some circumstances can run unmetered fares,
that are usually called ‘quoted fares’ that run a trip without the meter going.
This is usually an agreement between the passenger and driver before the trip. The
end of shift total split usually is from 45%-50% for the driver and the cab
owner to pay for fuel and take the rest. Unquoted jobs are based on honesty and
it is up to the driver to declare them on a running sheet or fare disclosure at
the end of the shift. Unquoted jobs can only be proven that they are done by
excessive kilometres but the driver can then say that he went out to a distance
fare to pick someone up and then when he got there they had gone or changed
their mind. As this does happen then it is a viable story whether it is true or
not. Drivers with a low kilometre per dollar rate are often more desired to
drive operator’s vehicles than those who run large amounts of kilometres
without disclosing quoted fares. For example if a driver runs 320 kilometres
for the night and has a gross taking of $600 (total cab taking for driver and
cab owner) then this is simply worked out as $600/320km= $1.85 per kilometre.
This is a good rate. If you take a bad running cost then it would be gross
takings of $230/260km= earning 88 cents per kilometre is a poor running rate.
Drivers also have been rumoured to be dealing in illegal
drugs at times or may also be using. Drivers for taxi companies at this stage
in 2016 do not have to undergo any drug testing. Drug dealing taxi or Uber
drivers may be a rarity but they certainly mix in the right circles and to
suspect that some may be doing this wouldn’t be chasing at shadows.
Occasionally dealers will employ a taxi or Uber to run them around to do a drug
run, driving at various drop off points with the driver often receiving a tip
at the end. It is in a driver’s best interest at times to turn a blind eye and
play the 3 monkeys card. Imagine being told by four large men dressed in black,
“You didn’t see anything mate,” as they put something wrapped in plastic into
the back of your cab.
What many new drivers to the rideshare industry find out is
that to be successful as a professional driver one must be skilled at assisting
the elderly, sick and disabled - I am
not big noting myself as a good Samaritan but these are just some examples of
what I have done to assist people in order to complete a fare. I have personally
have gone into a hospital to receive a fare who has just been released and I
have put the shoes and socks on to the patients feet and then assisted the
patient onto the lift do go down three floors to my awaiting taxi.
Other times I have assisted the elderly and sick.
*Once an elderly gentleman refused to go into an ambulance
and I helped him into my cab instead while the ambulance was still there at the
scene.
*Another time a guy in poor health was picked up at a
medical centre. A large amount of dead skin from his legs floated through the
air and I was breathing it in as I drove him home.
*We often assist the
visually impaired as well guiding them into chemists and medical centres
guiding them through doorways and upstairs.
Drivers don’t
necessarily have to do some of these things it is totally up to them on how far
they want to help out or not help out. At another time a fare allocated to me
was a young lady waiting at a service station who just couldn’t drive her own
vehicle anymore as she was over tired and may have been strung out on drugs as
well. So I moved her car into a safe spot and took her about 40 kilometres away
to where she lived. It was a good fare but I made the decision to cross a busy
road and move her car and I guess some other drivers may not have done this.
Negotiating with drunks and angry people is another skilled
required. People will not be afraid to be loud and comment rudely about
anything at any time. A driver can escalate the situation by being aggressive
or by not taking adequate control of a situation. There is a balance that a
driver must learn and that is to be empathetic and firm but fair.
A good driver must be tolerant to rude remarks and at times
mild verbal abuse, they must be patient and be able to understand other
peoples’ situations. A driver can be a nursing aid, a phycologist, a listening
ear and a parcel delivery service. Develop an even spread of these skills will
often lead to some nice tips and more fulfilment from the job knowing you’ve
helped someone out.
UBER IMPACT
Uber drivers are expected to come and go from the industry.
Some may leave when the reality of working with people isn’t quite so
glamourous. The advantages of supplying your own car are soon being questioned
when passengers mess up or are abusive. The ratings system may not mean much too
intoxicated passengers when they have been partying all night and enjoying the
ride home is still part of the party experience. There is truth to say that
they have made a fair dent in the industry and they will continue to do so.
Uber has been label a scam but not to passengers. Uber is a scam to the vulnerable drivers trying to earn a dollar from travelling for $1 dollar hired with other running costs.
