Black Cab Protest Set to Cost Londoners £125 Million

Kabbee, London’s homegrown licensed minicab comparison and booking app, has calculated how much tomorrow’s black cab demonstration is set to cost Londoners and the minicab marketplace. 

 

Based on data from the Centre of Economics and Business Research (CEBR), the cost to Londoners given the additional congested caused during those six hours, could amount to £125 million.[1] 

 

In addition to this cost, around a quarter of all London’s 65,000 minicab drivers are likely to decide to stay at home, in order to forgo losing money by spending a day in traffic.  It could therefore be a total of 16,250 licensed minicab drivers would ordinarily earn an average of £150 per day, losing out on £2.4 million of income.[2]

 

In London, minicab transactions amount to £9.8 million per day.[3]  With no supply of black cabs and 25 percent less minicabs, Kabbee expects that passengers may pay around £2.5 million extra for all cab journeys tomorrow, due to extra demand.[4]

Kabbee’s CEO and Founder, Justin Peters, comments on the cost to all road users: “Considering tomorrow’s demonstration is based on a decision that is with the high court, £125 million is a big price for Londoners to pay, especially as it could be avoided. 

 

“Since 2011, we have worked 24 hours a day, 365 days a year with 70 fleets and over 10,000 licensed minicab drivers across London who service hundreds of thousands of our users. Busy Londoners tell us that they want an easy booking process, and the best possible price. With black cabs costing up to 65 percent more than minicabs, it’s probably time for them to reconsider their charging policies to regain competitiveness.”[5]

 

Ryan Newman of Angel Cars, one of the largest fleets on the Kabbee platform, comments on the cost of the protest: “It’s safe to say that a good 25 percent of all our drivers will be put off working tomorrow – why would they, just to sit in traffic?  Drivers’ average daily earnings are around £150, so this is big blow to them, especially as we are the fleets that are doing as we should and abiding by the rules.”

 

Due to London’s bus lanes being clear of black cabs from 2pm tomorrow, Kabbee has submitted an official request to Transport for London to allow minicabs temporary access to bus lanes in a bid to keep London moving.

 

-Ends-

 

For more information please contact the Kabbee press office at Sense Communications at kabbee@sensecommunications.co.uk or call 0203 551 3954.

 

Notes to Editor

 

About Kabbee:

 

 

  • Kabbee lets users instantly compare quotes from 70 leading London fleets – based on time, location and type of car – and then book and pay by cash, card or pre-paid account. This saves passengers time and money and increases fleet efficiency.

 

  • Kabbee was launched in June 2011 and has had around 400,000 app downloads to date.

 

  • Kabbee was recently named as a ‘Future 50 Brand’ by Real Business, for being one of Britain’s most exciting and disruptive new businesses.

 

  • Kabbee incentivises its users to earn credit with its Free Cabs programme. By simply sharing their referral code the user gets £10 free credit for any friend who makes their first new account booking and their friend will automatically get £10 free credit too! Please refer to full T&Cs.


[1] Based on £1.7 billion cost of London traffic, divided by 81 - the number of hours the average person spends in London traffic, multiplied by 6 hours – see link here

 

[2] Based on there being 65,000 minicab drivers in London – a quarter of which will not work, multiplied by £150 earnings per day

 

[3] Transactions amount to £3.6 billion per year - Ibis world report on Taxi Operation in the UK: Market Research Report 2013

 

[4] 25 percent of £3.6 billion (transactions per year) divided by 365 is £9.8 million per day, amounting to £2.45 million extra cost

 

[5] See press release here

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