Transport for London's plan to make all Black Cabs accept card payments is great news - but the details tilts the playing field against them

By Derek Stewart co-founder of CabApp, a mobile booking and payment app for Black Cabs in the UK and licensed Taxis in Ireland.

   We all love simplicity and speed.

Last weekend I popped into my local Apple Store at Bluewater to get a new charging cable. Instead of queuing, one of the staff came over to me and I purchased the cable via her handheld mobile payment device. The VAT business receipt was automatically emailed to me. What a fantastic customer service experience.

So, I welcome TfL's decision that all black cabs by October 2016 must accept card payments, making life easier for all of us by offering a similar seamless experience.

But, although supported by the London Taxi Drivers' Association, not all in the industry are happy about the decision. As always, the devil is in the detail and there are some issues in TfL's proposals as they stand.

Chief among them is the fact that Black Cab taxi drivers will have to absorb the costs charged by their banks and card processing companies. But this is not the case for private hire licenced operators who can pass on the cost to the consumer as a surcharge.

This is in common practice in the travel sector, where companies such as EasyJet and Trainline.com can legally pass on to the consumer the payment processing costs of card payments in the form of a surcharge.

TfL's insistence that Black Cab drivers absorb the cost further tilts the playing field against them. Already, cabbies have to bear the additional costs to uphold the high standards required to obtain their licenced status.

Another problem is the prescription by TfL that mobile chip and pin devices are mounted at the back of the cab at the cost of their operators.

Most taxi drivers already accept card payments, with 58 per cent of London's 25,200 Black Cab drivers accepting card payments, according to a TfL survey in 2014. 

Far from being luddites, Black Cab drivers want to embrace technology to provide the best customer experience. From medical checks to purpose-built and disability adapted vehicles, licenced Black Cabs already absorb the costs of measures to ensure higher standards of customer safety. But imposing this payments initiative, is in effect, forcing us into terms which aren't in place for other industries.

Ultimately, we don't want to compromise customer service provided by the iconic Black Cab industry, but we also don't want to see our drivers' margins squeezed in favour of the private hire sector.

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Open Letter To TfL, Over Growing Contempt For The London Taxi Trade...by Will Grozier.

Dear Mr Bradley

 

Thank you for your invitation to comment, as a contributing respondent, to the proposal document being carried forward following the Private Hire Regulations Consultation.

 

I think I may speak for a vast majority of my fellow licensed Taxi Drivers in saying that in very simple terms, it stinks.

 

It stinks for a number of reasons chief amongst which are that it demonstrates an utter contempt on the part of TfL toward the licensed taxi trade.

 

Contempt because after a consultation period in excess of 3 months attracting some 16,000 individual responses TfL announce a fully formed set of proposals within 4 weeks of the consultation closure on 23rd December.

 

Given that half of that period was consumed by the Christmas break we are asked to believe that serious consideration has been given to the ideas and comments submitted in just 2 weeks. 

 

Even an organisation capable of dealing with 3000 new PH licences per month cannot move that fast unless of course the reality is that this avalanche of newbies are rubber stamped in the same cursory fashion as the sham 'Consultation'. 

( Indeed TfL admit in the latest document that discussions with the PH trade had been on-going for months )

 

Contempt also because TfL have failed to address the most important issue concerning London's licensed taxi drivers, - the 'Elephant in the Room' - how best to provide a clear distinction between taxis and private hire and prevent cars effectively plying for hire.

 

TfL have dropped the proposal to oblige Private Hire to work on a 5 min time delay without substituting any other mechanism to ensure that current PH practice does not completely eclipse traditional cabs.

 

There are many gradations of 'stink' emanating from Palestra around this issue;

 

The malodorous stench of sulphur arising from TfL's perceived improper compact with Uber.

 

The waft of diesel fumes which daily exceeds any previous levels of air pollution experienced in central London and arises from a grossly distorted Bus population mixed with a soup of CO2 from the unprecedented exponential growth of Private Hire and the associated totally unacceptable levels of traffic congestion 

 

And finally the less discernible but nonetheless highly obnoxious scent of moral decay.

 

In addition to the explicit statutory remit TfL have a concomitant implicit responsibility to act as the  ‘good steward’ of a centuries old and world renown Taxi licensing system which they are failing to exercise.

 

The British Disease - the national habit of tearing down and failing to capitalise on that which we elevate and excel at - was a societal dysfunction that most people believed had been seen off in the last century.

 

Sadly it is alive and well and currently most recently diagnosed in SE1.

 

In this context the plight of the London Cab Trade is perhaps most eloquently captured in a sentence by a national treasure Tony Hancock.

 

In an episode of TV series 'Hancock's Half Hour' Tub is seen soliloquising upon the subject of friends,

 

'Friends, friends,' he says in a questioning manner wearing a pained and distracted expression to some place off camera

 

'I've got friends all over the world.....'

 

He then pauses for dramatic effect before continuing,

 

'None in this country, but all over the world'

 

So it is with the London Taxi, revered the world over and yet marginalised by a hostile administration at home.

 

Many taxi drivers are bewildered at what has happened to our business as a consequence of TfL's back door deregulation, it has caused financial loss and personal stress to some degree to every working cabbie and the emotions most keenly felt are betrayal and anger.

 

That discontent will be exacerbated if these proposals are not modified before implementation and the taxi trades inalienable exclusive right to ply for hire enshrined in the new regulations.

We may have been around for 350 years but without a radical rethink on the part of TfL we will not be here for another 350 days.

On Wednesday 10th February the taxi trade will make it’s displeasure very visible in a demonstration in Whitehall.

The blame for the ensuing traffic disruption to London on this and increasingly frequent future occasions, must rest squarely at the door of 197 Blackfriars Road SE1 8JZ

 

Yours sincerely

 

W J Grozier

 

Proud Licensed London Taxi Driver

 

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LTDA's General Secretary Steve McNamara, Confirms Support For United Taxi Trade Demo

The Mayfair Mob, Taking The Ranks Back.

With the help of Hammersmith council, the Mayfair Mob managed to get the Shepard's Bush Taxi rank repainted last night.

This will clearly show private cars, delivery vans and of course Touts, that this is a working Licensed Taxi Rank and not for free parking. 

Also it is not acceptable for Taxis to park here and go shopping in Westfield. 

Please respect your fellow drivers. 

If you are passing and the rank is empty, please put on and give it ten minutes. 

Use it or lose it.

We have also been told Enforcement will be stepped up.

#Mayfairmob on the front line, taking the ranks back.

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THE BLACK CAB KNOWLEDGE OF LONDON.

I've been send this article which appeared in the Dutch Media, giving support to the London Taxi trade and its drivers’.  

 

The wife of a green badge who is Dutch saw this and has kindly translated it into English and thought it should be published for the London trade to read.:

THE BLACK CAB KNOWLEDGE OF LONDON.

 

Every month there are about a 1000 more private hire vehicles coming onto the streets London: mini cabs + Uber.

 

Resulting in even more queues and congestions in an already clogged-up ancient City with it narrow streets. Therefore, is it possible for the Black Cab to survive under these conditions with its highly regulated driver, vehicle and overheads?

 

Written by Titia Ketelaar,  29 December 2015.

Translation Marian Di Lieto.

 

This is what a Cabbie, the iconic driver of the famous London Black Cab knows by heart;

How to go from the centre: the Statue of Charles the I Island at Trafalgar Square, Charing Cross, to about 25000 streets within a 6 Mile radius.

 

Where, in the middle of the night, you can find a Chemist open. Or, how to find the quickest way through a web of streets from Mayfair to the Ritz Hotel at Green Park and the Lost and Found Property Office by Baker Street.

 

Where to drop off at the forever disrupted Liverpool Street Station.

 

Which pub is the nearest to whatever office, and that Kings Road and Kings Place are two completely different destinations!

 

It is simpler to let an Elephant fly than to learn the Knowledge, according to a Cabbie in the making. He still has to do another 5 month, before he hopes to gain his Licence.

 

Every day he goes out on his scooter to learn a new area and street plan, like all the Cabbies before him since the end nineteen century.

 

The London Black Cab driver unlike the private hire driver does not gain their licence until they have satisfied the Knowledge Examiner that they are of the high standard that the licencing authority requires of them. This allows them to accept immediate hiring’s from a rank or street hail.

 

All other forms of cars in London using route planners or not must be booked beforehand via a licensed operating centre, its App or telephone system.  This gives the private hire driver ample time to work out a route prior to undertaking the journey.

 

We’re talking about private hire licensed vehicles and unlicensed mini cabs and Uber Cars.

 

But there is one big problem according to London Cabbies and Cabbies all over the World.

 

The App to book Uber cars is really waving down or hailing on the side of the road, because they’re arriving so quickly.

 

Because of this we’re losing our privilege says Steve Mepham from the United Cabbie Group. The choice between studying the knowledge for (3-4 years) or making money straight away is the easy choice for most.

 

This means that a part of London’s soul is slipping away!

 

The amount of Cabbies in training is down by 60%. In the meantime the amount of different private hire vehicles is rising by a 1000 per month!!!

 

There are now (18th  January 2016) in London 96.890 private hire drivers and 75,394 private hire vehicles , 18.000 of which are Uber Cars and only 25.077 Black Cab drivers with 22,127 Black Cab taxis.

 

Applications:

Application volumes for licences - 539 applications are awaiting initial assessment. Of those applications, 457 are new (9 taxi and 448 private hire) and 82 are renewal applications (26 taxi and 56 private hire). Renewal applications are prioritised over new applications.

 

Sorce; http://ift.tt/1Ks1rS0

 

That is why the Laws need to be changed to protect the London Cabbies.

 

UNFAIR COMPETITION.

 

The rules need to be changed and it is for the government to make that decision for change. 

 

The rising amount of private hire vehicles as you can see from the above figures is causing queues and blocking up the roads in a City which is already congested.

 

The rules were laid down before the last King died (1953) says Steve Mepham. In fact the first act was London Hackney Carriage Act 1831. 

 

The Big question is…will the Government and TFL protect the special place and position of the London Black Cabs.

 

“We understand the pressure Black Cabs feel because of us, but they need to lower the rules” according to a statement from Uber.

 

It’s not that the Cabbies are luddites and against digitalising, which was said by Mayor Boris Johnson at City Hall last September.

 

Steve Mepham’s reaction: We created Radio Circuits and recently HAILO, an App to order Black Cabs, that was 2 years before Uber came to London.

 

THE HUMAN FORM OF GPS

 

In his Cab Steve Mepham has an I-phone so he is able to pick-up Hailo customers, an I-pad for the Get-Taxi passengers and a Blue tooth connection to offer a Credit Card service.

 

Half of my passengers are coming via my App said Steve. They like to be picked-up from home and they know that the map of London is in my head and the shortest and most direct route will be taken which is far superior to a GPS.

 

Cabbies are not against other door to door transport services; Steve Mepham reckons that 10 years ago there were 25.000 Black Cabs and 7.5 Million Londoners. Now there are 8.6 Million Londoners, so if you stop other taxi drivers from working here, we would not be able to cope with the demand.

 

And yes…Black Cabs are more expansive than a mini cab—which again is more expensive than Uber.

 

But there is a market for both. When Primart opened the doors opposite Selfridges, Selfridges didn’t go down in quality. They both have they’re purpose.

 

Steve Mepham is very proud of the service that he and his colleague Cabbies are giving to the Public.

 

“When I drop you off, I will always look and make sure you get safely through the building door.”

 

A lot of trainee Cabbies are Uber or private hire drivers or working as Couriers to learn the City/Town. Jamie Holmes was a Lorry driver and Gary Freeman use to deliver Pizza’s.

 

They are attending The Knowledge Point one of the many schools where Cabbie’s studying the enormous Map and testing each other’s Knowledge.

The school was on the verge of closing down (being demolished) but they found another smaller venue enabling them to carry on.

 

BAROMETER OF UNEMPLOYMENT.

 

In a room upstairs at the Knowledge School is teacher Derek O’Reilly examining trainees. 30 questions need to be answered by the nine Men and one Woman (2% of Cabbies are Woman). In the early days this room would be packed out. We use to be the Barometer of unemployment in this City. When Ford motor car plant cut down we had Mechanics coming through the door, when the City slimmed down we had Bank staff coming in and now we see a lot more Policeman and Firefighters signing on.

 

The Knowledge is an expensive study, about £30.000 on average. Having to buy a scooter and pay the insurance, petrol etc. and often without a fulltime employment.

 

ARCHAIC KNOWLEDGE.

 

During the study they also have to learn things like:

The staff at Harrods Department Store needs to be dropped off one street further then their customers as there is a passageway under the street from their canteen to the Store. They also know that the West part of London is richer than the East, so there are more trips being made on the Westside of town.

 

The question if the Knowledge is, in this time of GPS irrelevant, there is a protest!

The Conservative Party called the Knowledge Archaic. But Jimmy Jeffrey says: we know all the road works, queues etc. which the GPS doesn’t! 

 

James Holmes says that he does not have to feed other addresses into the GPS machine when the meter is running, but maybe it won’t take long before there is a app for that as well.

 

THE OLDEST TAXI IN THE WORLD.

 

The London Hackney Carriages (the official name of Black Cabs) are the oldest taxi service in the world! In 1636 Charles I gave 50 carriages from Hackney consent to pick-up people off the street. The Knowledge started in1851 because Police Commissioner Richard Mayne was upset by the amount of Hackney Carriage drivers who didn’t know they’re way around the City. For them to gain London Hackney Carriage drivers licence from then on they had to study the roads.

 

A Black Cab driver knows all the roads within a radius of 6 miles from Charing Cross. Through Roads are called Oranges and Lemons according to the colour on the map, derived from the Children’s nursery rhyme:  ”Oranges and Lemmon’s says the Bells of St. Clements”

 

The Hippocampus, a part of the brain where orientation ability is situated is in cabbies significantly larger than in other humans. This was the result of tests that were carried out at the University College London in 2006.

 

At the start of the Knowledge the Hippocampus was the same size as in other human beings but after 3-4 years of study it was found to have become enlarged! 

With thanks to Les Hoath.

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European MP accuses Uber of being 'designed, from the start, to reduce its tax'

A European member of parliament has accused Uber's European business of being "specifically designed, from the start, to reduce its tax liabilities."

Labour's Anneliese Dodds made the comment to Business Insider over email after we pointed out that two Dutch companies closely involved in running Uber's UK business had no employees for up to a year after it launched here. 

Uber employed eight people in its Amsterdam offices in 2013. But the corporate entity that immediately controlled the UK operation had none.

Uber strongly contests Dodds' characterisation of the business and argues that there is nothing wrong with the two companies in its Dutch structure that had no employees at the time. The company stresses that at the time eight employees worked for Uber overall in Amsterdam and it now employs over 150 people in the Netherlands. 

Uber runs all of its European operations from the Netherlands. The company has faced criticism for the set-up in the past and been accused of using the country as a tax haven, skirting corporation tax by processing revenue from Uber rides in places like London through its Dutch subsidiaries, where there is a lower tax rate.

Business Insider obtained documents from the Dutch Chamber of Commerce on Uber's Dutch businesses, which show Uber BV, the company that currently issues invoices for UK rides and handles the revenue from UK fares, had zero full-time employees as of December 2013, the most recent period the Chamber has accounts on. 

Uber International Holding BV, the immediate controlling party of Uber's UK company, also had zero employees up to December 2013.

While these two had no direct employees, a Dutch business that owned them both has eight.

A spokesperson for Uber said: "In 2013, all international employees based in our headquarters in Amsterdam were contracted to a Dutch company that wholly owned Uber BV. We restructured, and today there are more than 150 employees of Uber BV."

Uber declined to specifically say what the purpose of the two zero-employee Dutch businesses were, but said it was not unusual to have such structures to allow legal separation of subsidiaries, protect legal accountability, and allow varying ownership.

We've noted before that Uber's UK fares are processed through a Dutch subsidiary. This means revenues and profits from the UK company, which might be liable for corporation tax, end up in the Netherlands. Uber BV's 2013 accounts show it had $51.2 million on its balance sheet.

The most recent accounts for Uber's UK-registered operation show it made a £888,436 pre-tax profit on revenues of £11.2 million in the year to December 31, 2014, according to DueDil. It marks a 951% increase in revenue on the year earlier.

Here's a screenshot of Uber BV's 2013 accounts from the Dutch Chamber of Commerce's website, with the employee figure highlighted:

While the accounts are out of date, they do cover a period in which Uber was operating in the UK. Uber launched in London in June 2012, with the two Dutch subsidiaries examined here opening months later. They are also the most recent accounts available.

Anneliese Dodds, a Labour Party MEP for the South East, told Business Insider via email: "It is especially worrying that Uber's business model appears to have been specifically designed, from the start, to reduce its tax liabilities."

"I share many of the concerns that have been raised in the UK and elsewhere about Uber's tax arrangements," she said. "As a result, I have asked for the company to appear in front of the European Parliament's 'special committee' which was set up to investigate corporate tax avoidance. I have also raised issues with their business model with the EU's Competition Commissioner."

Responding to Dodds' accusations, a spokesperson for Uber told BI:

“Our corporate tax structure is probably the least innovative thing about Uber:  it’s the standard approach adopted by most multinational companies.  Uber is a significant net contributor to hundreds of local economies, creating new economic opportunities for thousands of people in each city where we operate.  In terms of corporation tax, this is a moot point today because unlike more mature, highly profitable US companies, Uber is still investing heavily to roll out our service around the world”.  

Dodds has been a leading voice calling for European tax reforms to stop large corporations avoiding paying dues. Many of the recommendations made in a report she authored last year have been endorsed by the European Commission.

Dodds' office clarified that Uber has not yet been asked to appear before the special committee on tax, and the EU Competition Commissioner has not yet responded to her letter about Uber.

Dodds continued: "Some people have suggested that criticising Uber's business model is to criticise the new digital economy. This could not be further from the truth. There are huge numbers of digital companies out there which are creating value through increasing productivity and adopting innovative new business models."

"Uber's profitability, however, seems to be based on reducing its tax liabilities and screwing down pay for drivers. That is not the kind of 'innovation' which will help us create a sustainable digital economy for the future."

Source : Business Insider 

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TfL Statement : Card Payments To Be Accepted By Every Black Cab.

Travelling in one of London's iconic black cabs is about to become even easier. Today (3 February) it was confirmed that every London taxi will be required to accept card payments for their fares by October this year. The move was approved by the Board of Transport for London (TfL) following a consultation in which an overwhelming 86 per cent of respondents backed the move.

Cash has always been the standard method of payment in London's 22,500 licensed taxis but around half of all cab drivers now accept card payments. By requiring cards to be accepted in all black cabs, taking a cab will be even easier for Londoners and visitors.

The Mayor of London, Boris Johnson MP, said: "It's great news that with a quick swipe of a card, millions of passengers will be able to pay for their journeys in London's iconic black cabs. It's an essential part of modern life and it'll make paying for your journey swifter and simpler than ever before."

Garrett Emmerson, TfL's Chief Operating Officer for Surface Transport, said: "We believe the acceptance of card and contactless payments will be a huge plus for both taxi drivers and their passengers. Card payments are part of everyday life in London, and people use them in every aspect of their lives. The TfL network is seeing more and more contactless payments so this would bring the taxi trade into line with other transport services in the Capital. It means that customers no longer have to check whether they have cash for a journey beforehand and will open up taxis to potential new customers."

TfL has also committed to working with the card industry to link card payment devices directly to the taximeter in future.

Richard Koch, Head of Policy at The UK Cards Association, said: "Consumers are increasingly choosing to pay with cards as a convenient and secure alternative to cash. It's great news for Londoners, and visitors to the Capital, that they'll always have the option of using a debit or credit card in taxis now too. With one in ten card transactions now contactless, many passengers will also welcome the ability simply to touch and pay for their cab journey."

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