Sunday 20 November 2016

Motorists should be able to become black cab drivers without having to learn the Knowledge in the biggest shake up of taxi regulations for 30 years, according to a Thatcherite thinktank.

The Institute of Economic Affairs is proposing a bonfire of regulations and restrictions in the taxi market to increase their number on the roads and slash fares for passengers.

Under the IEA’s plans, it would no longer be a requirement in London for new drivers to spend three years memorising routes around the capital.
The distinction between private hire vehicles – which have to be booked in advance – and taxis – which can be hailed on street corners - would be dropped.

Other changes would see minicab and  – rather than just black cabs – being able to wait on taxi ranks for new passengers and drive in bus lanes without being fined.

The main requirement to drive a taxi would a clean criminal record and car insurance to protect the driver and passengers.

The IEA - which was closely linked to Margaret Thatcher's ideas in the 1980s - said new mobile phone apps like Uber had “completely transformed the taxi market and rendered the majority of existing regulations redundant”.
The IEA said the distinction between private hire vehicles and taxis had been “blurred” because cars booked using the Uber app can be booked from street corners.

Mark Littlewood, the IEA’s director general, said: “Current regulation of the taxi market is archaic and needs urgent reform. Much of the new regulatory measures taken have been obvious attempts to obstruct growth within these companies.

“The market must be liberated from overzealous government regulation to allow companies to regulate themselves according to market preferences, and to level the playing field for both taxis and private hire vehicles in a way which encourages competition and growth and to improve service for consumers.”

Last year the number of licensed minicabs and taxis jumped by nine per cent to 242,200, the highest level ever. Two thirds of these – 69 per cent – were private hire vehicles.

The report said this distinction should be dropped altogether: “Before smartphones, apps and GPS there was a clear distinction between taxis and private hire vehicles.

“Taxis were hailed for spontaneous trips and private hire vehicles (PHVs) had to be pre-booked. Technological changes have rendered that distinction obsolete.

“Yet, whilst PHV markets are open and competitive, taxi markets are still heavily protected, with the number of licences capped.
“We should not be supressing the growth of new business models, but lifting restrictions in the taxi market generally, which would lower prices.

“To ensure the market remains competitive, archaic regulations such as quantity restrictions must be lifted and privileges abolished, to establish a level-playing field.”

The thinktank pointed to evidence in New Zealand and Ireland that when restrictions are lifted “consumers have benefitted from shorter waiting times, lower fares and higher quality services”.

The IEA said there were “significant barriers to entry for would-be black cab drivers”.

It said: “Aside from the stringent Knowledge test – which can take up to four years – the iconic black cab sells for nearly £43,000.

“This is almost twice as expensive as a hybrid Toyota Prius, the common choice of Uber drivers.”

It was a “myth that smartphone-enabled apps have created an ‘unregulated’ private transport service”, the IEA said.

“Organisations such as Uber do not just offer transport services, but a set of rules and regulations under which services are provided. Private regulation such as this is preferable to statutory regulation. 

http://www.telegraph.co.uk/news/2016/11/20/motorists-should-become-black-cab-drivers-without-having-to-lear/

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CANADA

Calgary's taxi committee has voted to create 222 new taxi licences, but the decision may have created a hitch that could keep Uber from launching in the city before the holidays.

Adding more taxis will give drivers a chance to compete with the growth of ride-hailing companies like Uber, committee members argued on Friday.

Uber could hit Calgary streets in time for the holidays, councillor says
The livery transport advisory committee also approved amendments to Calgary's rules for ride-hailing, recommending the new taxis hit the streets first and that could take up to three months.

"Ninety days is typically how much time it takes to from the date of approval of a taxi plate to the date that it actually gets on the road and is rolling," said chief livery inspector Mario Henriques.

Uber was hoping to launch in Calgary in time for the holiday season.

City council, which still needs to vote on the recommendations from the committee, will discuss the changes later this month.

Associated Taxi spokesman Roger Richard said he would prefer to see the taxi system opened up so there are no limits on how many cars are on the street, allowing the industry to compete head-to-head with ride-hailing services.

"Why create restrictions on our side?" he said.

http://www.cbc.ca/news/canada/calgary/taxi-committee-wants-more-cabs-on-the-street-before-uber-arrives-1.3858753

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