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Hackney Carriage or Private Hire? A few things to think about when making your choice.

Six top tips for anyone looking to start a career as a licensed driver

More and more new drivers are entering the cab trade every month. This is great news and shows how starting a taxi or private hire business is relatively easy and low cost. It is a fantastic way of working in a flexible way, and it is also an industry where any person can build a substantial business if they decide that is what they want -the possibility for growth really is there for everyone. However, it does worry me a bit that some applicants seem to come to the trade (and our training sessions) having already invested a substantial amount of money and time but with very little idea of how the business works and what to expect.

Following on from my previous post (My Cab, my rules!), here are some top tips that may help you decide on whether or not cabbing is for you:

1. Make sure you are eligible for a licence

Every authority will have a policy on suitability. They may call it a suitability policy or they may call it a convictions policy, or a policy on being ‘fit and proper’.  Whatever they call it, the first thing any new applicant should do is read it. If you need any help interpreting it, contact us and we will go through it with you. The policy may deal with some basics such as minimum age (often, for no real reason I can understand, 21 years of age), and the minimum time you’ve held a driving licence. It will also go into much more detail on previous convictions (and remember – driving offences are included in this).

If you find that you are not eligible according to the policy, this doesn’t mean you can’t try applying. Each case must be dealt with on its merits, which means each individual must be treated fairly and given a fair hearing. But the policy will give you a good idea as to whether or not your application will be a waste of time and money, or whether you want to risk your money. These days you usually won’t get a refund (or at least not a full refund) on a failed application. This is why I say this should be the first step for every person looking to get a licence. There isn’t any point in applying if you know the answer will be no. These policies can usually be found on the licensing authority website. If you can’t find what you are looking for, contact us or email the licensing authority to ask.

2. Picking the right type of licence is key

You can only drive around looking for work, wait on a rank, or take bookings directly from the customer, if you hold a hackney carriage (taxi) licence.

Private hire drivers can only receive bookings from a licensed private hire operator.

Reading this, you might think that a hackney licence gives you more freedom? Well, in some ways it does. However, there are a few strange quirks with hackney licences. Firstly, you can only ‘ply for hire’ (the term given to driving around looking for work) in your own licensed area. Outside of area you cannot pick up off the street or taxi ranks. Secondly, you must take journeys within your local area (or set distance in London) unless you have a ’reasonable excuse’ not to. If it is a short journey and you’ve been sat on the rank for two hours, guess what? Tough! That’s just the luck of the draw. Thirdly, the tariff (the amount you can charge) is set by the local authority. Strange isn’t it? You buy a vehicle and get a licence and cover all the costs of running the business but someone else tells you how much you can charge. Again, that is just the way it is. Is it right? Well, that’s a debate for another day. This brings me to my second important point: don’t start a business unless you know all of the problems. Once you know them, you can find a way to work that suits you. It isn’t sensible to start a business and then complain about the rules afterwards. All you will have done is wasted time and money and caused yourself unnecessary stress.

On the other side of the coin, private hire fares are set by the operator and the scope to charge more for certain jobs is much greater (where this is not discriminatory). But out of this fare you have to pay the operator to receive the jobs in the first place (usually a fixed weekly fee or commission based payment) and you absolutely cannot do private work. Picking the right operator is therefore an important business decision. Are they charging the customer and you the right amounts? Can you earn enough? Is it a fair deal? You can only answer these questions if you take the time to research the situation. Remember: you are the driver. You are doing the important work. Choose a business partner (operator) who respects this.

3. Think ahead to what type of work you would like to do

As well as the booking and pricing restrictions you also need to consider what type of work you want to do. Whatever work you decide on, you will need a suitable vehicle. Does the local authority in your area allow for that type of vehicle to be licensed? What are the age restrictions? What are the emissions restrictions? What engine power or size is permitted? Do you have to buy a wheelchair accessible or purpose built vehicle?

All of these factors will have an impact on the type of work you want to do. If you aren’t enjoying the job, you are not going to be as successful in running your business. The good news is there are so many licensing authority areas, with so many different specifications, that you are bound to find something to suit you (although you may have to move house!).

Lastly, if you are a private hire driver, applying for your own operator licence may be the way to go to open up more opportunity?

4. Learn about the role of the licensing authority and how you fit into the bigger picture

Transport is changing rapidly. Find out about the local authority’s plans. Do they intend to block access to some roads? Will your vehicle type be included? Are they working to encourage more cycling and use of public transport? How will this impact on your ability to make money? (spoiler: it should be a good thing as more people give up private cars).

You cannot operate any business in a bubble. You are part of bigger picture, one that is often in the news and at the forefront of technological change. This is good thing. In change there is opportunity. However, you can only grasp opportunity if you stay on top of how things are moving and where the gaps in the market are appearing.

5. Pay attention to the small details

In terms of rules, laws, conditions and regulations the more detail you understand the safer and less stressed you will be. As a professional driver, knowing these things is part of your job. Keeping other road users safe is part of your job. If you get stressed out at the idea of cyclists using the road then being a cab driver is not for you. Overtake giving sufficient space to demonstrate due care and attention for all road users. Allow pedestrians to cross. Read the Highway Code! Will this slow you down? Almost certainly. Is this a problem? No. Not if you go into this business understanding that this is the future of transport.

Do not hold a mobile phone (or any communication device) in your hand whilst driving the vehicle. Find out what ‘driving a vehicle’ means (clue: it isn’t just when you are moving). How does this impact on taking card payments from passengers? What can you do about this?

Where can you park? Where can you wait? Can you pick up customers who are waiting on a double yellow line? This will happen to you. What is better – Work out the answer before it happens? Or spend the rest of the day worrying about the ticket you may be receiving in the post?

Can you smoke in a licensed vehicle? What about vaping? What do you do if your customer insists?

Who has to wear a seatbelt in a cab? Well, this one is actually a bit complicated and not helped by the fact that the rules are not written in one place but must be cross-referenced from multiple bits of law. Will you carry children in your cab? Well, it seems highly possible. Do they need to use car seats (known as the ‘correct child restraint’) in your cab? (Short answer: yes, in the front seats as per usual rules for motor vehicles (section 15(1) Road Traffic Act 1988). However, rules for child restraints are different when passengers are travelling in the back seats of private hire vehicles and taxis. Do you know what they say? What about children under 3 years old? What about that lucrative school run you were planning on doing? How does this change things and what planning is needed to operate safely and legally?

6. If in doubt, ask an expert

If you want to know the complete answers to these, or any other, questions you may have, please do get in contact with us and we will gladly help. Alternatively, you can book onto our online classroom ‘Professional Driver Course’ and learn them all in one go. Whichever you do, please prepare yourselves correctly. Drivers get in trouble all the time. Not because they are bad people but because they didn’t take the time to find out the correct answers to these and many other questions. Stay safe out there and good luck with your business.

 

 

Nothing in this article should be taken as legal advice.

Unified Transport Systems

Unified Transport Systems work to connect public and private sector service providers to create the transport systems of the future. A truly Unified network will create opportunity, ensure well-being and allow everyone to travel easily, safely and at a fair price.

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