Half of all cab firms surveyed believe Uber poses a ‘severe or moderate threat’, according to new research.
The consultation involving 103 taxi operators, also highlighted that cab firms believe digital hailing is the future of the taxi industry.
Cabs.com, a cab firm aggregator, announced the results of its latest survey into the Private Hire Vehicle (PHV) market. Cabs.com lists over 8,000 cab firms on its website, more than 50% of the UK market. This is the second survey the company has conducted and it was sent out to 3,000 independent cab firms (103 responded), 20% of the total in the UK.
The picture emerged of a robust and optimistic sector of the taxi market, but one aware of the challenges facing it. Below is a summary of some of the major findings:
52% of companies believe Uber poses a severe or moderate threat
73% believe digital hailing is the future of the taxi industry
79% believe independent cab firms should join together to effectively compete with Uber
William Berry, CEO of Cabs.com, said: “Independent cab companies are well aware of the changing dynamics of the cab market and the threats that they pose. Cabs.com is in a unique position to help.”
The survey also built a picture of the infrastructure of an average cab firm:
10 to 15 drivers
Average fare of c£12
Monthly passenger bookings of 1000-2000
Monthly staff costs of £8000
Office rent of £500 - £1000 per month
Berry added: “82% of companies surveyed said they would be interested in our service if we could lower costs and increase bookings. You can see from the figures above that the market bears significant office and staff costs.
“An automatic dispatch system would significantly reduce these costs, whilst our passenger and driver apps ensure a quality of service that would see increased bookings.
“This is a huge opportunity to bring together all the independent cab companies, and their drivers into one advanced digital hailing service, with great benefits to passengers across the UK in terms of convenience, availability, service and cost.”
Image: pxhere (CC0)