Essential Taxi Industry Updates for 2023
With the year rapidly coming to a close, we’ve rounded up the key updates and challenges from the taxi industry. Plus, a look ahead into the future and what to expect.
Table of Contents
1. Taxi regulatory changes and compliance
2. Competition from ride-hailing services
3. Taxi availability and suitability
5. Changing customer needs and preferences
6. Taxi driver retention and well-being
8. Keeping you updated at The Taxi Centre
It’s been another busy year for the taxi industry. With the growth of electric taxis, changing taxi regulations and technology, it seems like it’s all happening at once.
As we reach the end of 2023, we thought we’d look back at some of the most important updates for the taxi industry this year. Read on for the full round-up.
Taxi regulatory changes and compliance
When it comes to taxi regulations, things have constantly been changing. Local councils and authorities have been continuously updating their policies around licensing requirements.
This includes changes to vehicle specifications, driver qualifications, insurance, and background check processes. Such a stream of changes has made it challenging for drivers to keep up, costing both time and money.
Low Emission Zones (LEZs) have been a constant source of threat to drivers, creating the pressure to switch to an electric or hybrid taxi. This has caused particular financial strain on those who can’t afford to make the switch, though taxi grants have helped combat this.
It’s important to make sure you are up to date on the latest taxi regulations in your local area to remain compliant.
Competition from taxi ride-hailing services
With a host of taxi booking apps now available to customers, you no longer need to call an operator to book a taxi.
In just a few taps, customers can now order a taxi straight to their door and even pre-book for a later date.
It’s the height of convenience for passengers, but a challenge for traditional taxi firms. If old-school operators don’t keep up with the competition, they risk falling behind.
Not only do these booking apps offer an easier way to book a taxi, but more competitive pricing and a better customer experience. Offering online booking services through an app is especially key if you’re just starting your taxi business.
Taxi availability and suitability
Due to increasing demand and taxi driver shortages, many taxi companies have found taxi availability an issue.
Given the speed and ease through which customers can book taxis online, this is now even more of a challenge.
Maintenance and replacement costs have also been a source of expense, with changing taxi regulations. Especially those that require older vehicles to be replaced to meet emissions standards.
What’s more, with the UK government’s move towards electric vehicles, taxi firms have had to adapt and face the inevitable costs of fleet expansion.
QR codes for booking taxis
Recent developments in the industry include the use of QR codes to generate and automate bookings.
These aim to offer passengers a quick, convenient way to book a taxi whenever and wherever they are by scanning the code with their smartphone. They can then track their taxi until it arrives to their destination. Perfect for hotel guests or those attending a party!
The potential for QR codes in the taxi industry came to fruition during the COVID-19 pandemic. In the UK, taxis were fitted with unique QR codes which were linked to the NHS app. This assisted with the track-and-trace scheme to help reduce the spread of infection.
Other uses include helping with digital payments and allowing customers to scan their driver’s badge for reassurance.
Changing taxi customer needs and preferences
Let’s not forget that some of the industry’s most recent changes have also come from the changing needs of its customers.
In a digital age, most UK transactions now take place via cashless or contactless payments. Customers now expect these services to be available when paying for their taxi journey.
If you read our article on the future of cashless payments in the taxi industry, you’ll know there are a lot of benefits that come with this. Such as:
- Lower security risk with drivers carrying around less cash
- A more seamless payment process for both driver and passenger
- Increased satisfaction from customers
- Added convenience for passengers – no need to worry about having the right cash
Taxi drivers in cities like Birmingham, Liverpool, Chelmsford, and Oxford have had no choice but to adapt. Since 2016, drivers in these areas have all been required to offer card payments to customers.
With digital payments expected to rise up to 91% by 2028*, other taxi firms will have to follow suit to keep up with the change in demand.
*According to MyPos
Taxi driver retention and well-being
Amid driver shortages and increasing demand, driver retention has been another key challenge.
With many drivers approaching retirement age, taxi firms have been forced to try and recruit younger drivers. A task more difficult than it seems.
Add to this the increasingly rigorous knowledge test and all the necessary training, and you get much less interest.
Those who are still working want more competitive wages and flexibility in their shifts. In response to this, taxi firms are looking for ways to prioritise driver well-being in order to keep a proactive fleet running.
In one of our recent articles, we focused on mental health in taxi drivers, providing some helpful tips and advice to look after your mind at work.
Automated taxi customer support
As technology improves, more operators are looking to implement automated customer support systems. These enable faster, seamless customer interactions when it comes to bookings and dispatches.
In the hustle and bustle of daily living, customers don’t want to have to wait around to speak to someone. This is where these automated systems come in handy, passing any issues straight through to the customer service team.
Dealing with customers promptly will hopefully boost customer satisfaction rates and customer loyalty.
Keeping you updated at The Taxi Centre
At The Taxi Centre, we like to think we’re not just here to help you find the perfect new taxi for sale. But also, for any other needs you have related to a taxi vehicle.
From keeping you up to speed on the latest taxi grants and incentives, to giving you tips on improving your customer service and more in our newsroom.
With our Hire Purchase options, you can get one of the latest models at a great price and pay in a way that suits you. Plus, with our special offers and partner discounts, we help you save money as a taxi driver. After all, a little extra always comes in handy!
If you need any help or assistance throughout your journey with us, we’re here. Just get in touch with our friendly team for some expert advice. We’re happy to help!