Black cabs in London have gotten more expensive. Fares for London’s black cabs have been increased by 1.6%, despite the fact that cabbies are already facing fierce competition from increasingly popular app Uber.
The rise has been calculated by using a 1980s developed formula which is based around the average national earnings and how much taxi drivers have to pay out in running and operating costs.
Although there has been a reported 13% drop in fuel costs for cabbies, their other running costs have increased. Insurance for taxi drivers has reportedly gotten more expensive as has the cost of maintaining and repairing black cabs. These increased costs have been given as the reason for 40% of the increase in fairs.
Insurance for taxi drivers has long been one of their most expensive operating costs, with insurance providers increasing premiums in recent years.
The remaining 60% of the fare increase has been attributed towards an increase in the national average income and have been implemented to help bring London’s cabbies in line with the earnings of other works in Britain.
But with the rise of Uber and their now lose to 100,000 drivers in London, will this increase in black cab fares do more harm than good to the earnings of cabbies? By comparison there are approximately 23,000 black cabs in London.
It looks as though the number of Uber drivers in the capital is set to rise. It’s relatively easy to become a registered Uber driver and relatively difficult to become a black cab driver; cabbies in London must drive a specific type of vehicle and have to spend years learning their way around London.
Rough calculations, based on a 6km journey from the City to Canary Wharf, show that black cabs can cost anywhere up to 50% more than Uber, however if there is a large demand for Uber drivers their fares can increase.
If you’re a London cab driver and need to renew your taxi driver insurance, contact Insurance For Taxi Drivers UK today for a quote.