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DAUS’ BRITISH INVASION – UNDERCOVER IN THE LONDON TRANSPORT SYSTEM: “SKY FALL!” IS LONDON CAB FALLING DOWN?!After all of these years I finally visited the supposed Holy Grail of taxicab systems in the world – London. The International Association of Transportation Regulators (IATR) and its European regulators participated in our annual Taxi Research Network sponsored Taxi Expo in Amsterdam at the end of November 2012 where the topic of consistent conversation and presentations was the London cab system. Immediately thereafter, I was invited to visit London by John Mason, the head of Transport for London’s taxi and for-hire licensing. In addition to meeting and interviewing private for-hire and black cab drivers, I also spent many hours with Mr. Mason and PCO staff, touring the inspection, administration and training offices before visiting industry dispatch and radio facilities. In the course of my trip I was interested and intrigued to learn more about the work of the United Kingdom's (U.K.’s) Law Commission. The Law Commission is conducting a review of the licensing system for taxicabs across England and Wales, including London, and will be making recommendations for reform by the end of 2013 as well as producing draft legislation. The English taxi system, thought of in regulatory circles as the best cab system in the world, is revealing that some clothes are being shed by this regulatory emperor. The system’s infrastructure and years of political issues, customs and resistance to change could lead to a disintegration of the system if not tended to appropriately. Believe it or not, London’s system may need some reforms to keep it on top of the heap. There are many similarities but also several key differences between the London taxi market and New York City (NYC) in particular. For example, in London there is a mostly street hail black cab system with license holders who have passed the famous and rigorous Knowledge examination, and the Private Hire Vehicles (PHVs) that must accept only prearranged radio calls and do not have the same level of training. In NYC, yellow taxicab drivers can accept “only” street hails and receive significant training while For-Hire Vehicle (FHV) drivers have not been trained at the same level. The rivalry between PHV and black cabs in London, and taxicabs and FHVs in NYC exists, but it is a much more intense situation in London. Most London black cabs are older “purpose built” vehicles that are aging, but functional and elegant. NYC’s taxi fleet is newer and becoming “purpose built” off the assembly line in the next few years due to the “Taxi of Tomorrow” project.
IATR President Matthew Daus (second from right) tours the SGS Inspection Facilities at Transport for London's Public Carriage Office with (left to right) Helen Chapman (Deputy Director), John Mason (Director) and Edmund Davies M.I.M.I. (Taxi Contract Support Manager).
The grid based geography of NYC is much easier to master, of course, compared to the overwhelming and dizzying web of streets on a London map. Many, but not enough, London black cabs and PHVs accept credit cards while NYC mandates taxicabs to have fully integrated rear seat card readers. Finally, London won the bid for and held the 2012 Olympic games, and NYC lost the bid and continues its Olympic dreams. First, let’s start with the drivers and the penultimate issue, the “Knowledge”. This endless system of driver education involves a multiyear unpaid job of training with no guarantee of ever completing its requirements which would allow one to work as a London black cab driver. Prospective black cab drivers ply the streets on mopeds with maps in hand practicing runs and stopping by London Taxi and Private Hire for periodic testing. The London Taxi and Private Hire is the regulatory agency for cabs that replaced the historic Public Carriage Office that is part of Transport for London (TFL). I met many prospective applicants waiting in the TFL lobby, dressed to their best in suits and genteel English clothing. The Knowledge in recent times can take many applicants up to 4 years to complete, and it is quite an impressive endeavor. However, one could attend and graduate law school, obtain most graduate degrees, or even come close to obtaining a Ph.D. in the United States in less time. The Knowledge is by far the most impressive topographical skills assessment which sets London black cab drivers on top, but it is also the source of many problems festering within the system. Some critics contend that it may not even be necessary due to GPS navigation devices. There are some who argue that London’s “open entry system” is as good as closed, as the difficulty and number of years needed to pass the Knowledge amounts to a de facto barrier to entry. Not only has this led to more drivers opting for the easier route of joining the ranks of licensed PHV operators creating competition for the black cab drivers, but it may also contribute to class distinctions on a social and political level between these different types of drivers. It would be no surprise to find a superiority complex among black cab drivers that affects everything from opposition to policies that benefit their passengers or to the very existence of PHV drivers. It appears that Mr. Mason is moving towards reform in this area by increasing vehicle inspections and possibly licensing standards for PHV drivers and vehicles in order to level the playing field because of the increasing influx of drivers and service in this category. Another issue is driver familiarity and comfort with the existing system in general, which, for example, is slow to adopt changes or new technology outside radio groups. While I was in Amsterdam and London, there was nothing more frustrating in both places than not having credit card access. It is, quite frankly, outrageous that merchants, including taxicab and limo drivers, are either not equipped with or are resistant to accepting credit cards; i.e., many handheld systems are surreptitiously hidden in glove compartments. Forget about the “no cash” protection from robberies, but simply making it easier for customers will increase usage and tips just as it did in NYC. The more I travel the more I feel that credit card acceptance in taxicabs is a fundamental right that must be mandated everywhere! Whether it is through handheld processors, rear seat swipe systems or apps within the control of passengers, this is 2012 and we need to play catch-up compared to other industries. We do not need “Q’s” help to invent fancy devices and gadgets. Let’s start with the basics, like simple credit card readers, and later build on this foundation by integrating smart phone payment technology and regulatory dashboards and software. In this way, the TFL can obtain data and analyze cab usage as they already do on the congestion pricing program. As NYC cab drivers have learned, the government did not “spy” on them, they were not subject to widespread government tax audits, and they actually earned significant additional revenue. Let’s get over the driver fear and obstinacy in London and just get it done. The primary opposition is coming from driver groups, and they really have no legitimate excuse for inconveniencing customers. In London, all drivers are independent owners and merchants so there are no thorny administrative issues that exist in other English cities where driver leasing is the norm and where taxi owners need to advance cash to drivers at the end of their shifts because credit card payments take some time to clear.
A "Wrapped" London Black Cab
The U.K.’s Law Commission is a very well respected, law reform body that looks into a wide array of industries and issues. It was created as an independent body by Act of Parliament with a mandate to keep the law under review so it remains current, simple and fair; as well as to make recommendations to government. This interdisciplinary group of lawyers, economists, and policymakers studies an issue or system from top to bottom as was recently done via the Victorian Inquiry in Australia, and may result in an extensive report that could lead to important changes to the London cab system. The Law Commission published a consultation paper in May this year, and Ms. Uguccioni and research assistant Hannah Gray outlined the key features of the consultation paper. The provisional proposals maintain the current distinction between the black cab and PHV systems but seek to introduce common national safety standards that would apply to both. Quantity restrictions on taxicabs and medallion values are a difficult area which the Commission is also considering reforming, and this is probably the most controversial area they are considering. Reform of ancient concepts like "plying for hire" means reassessing the boundary between services provided exclusively by black cabs, as compared to "pre-book"-only PHVs. The Law Commission has consulted extensively with the IATR and local stakeholders and is working with legal experts in order to tackle these issues. There is a unique opportunity in London right now to preserve the system’s high stature and bring it to the next level. Many issues are coming to a head including the widespread unchecked use of smart phone apps, no credit cards, an aging London cab driver pool, increasing numbers of PHV vehicles, and the announced bankruptcy of the company that manufacturers the London black cabs. The Olympics are over, and I can understand that any Mayor looking to make changes before such a tremendous event would have been politically problematic as we are now seeing in New Orleans, Louisiana where Mayor Landrieu is trying to clean up the system before the 2013 Super Bowl. However, London Mayor Boris Johnson was just reelected earlier this year and he is term limited so there is an opportunity now to tackle key issues even if it means major disagreements or protests by drivers. Mayor Johnson needs to display his “Jaws” and play a “Doctor No” role with the powers that be. Some tough parental love may be needed for the industry, and the time to tweak this system is now. This unique political opportunity can be facilitated by the work of the U.K. Law Commission as well as the presence of an intelligent, dedicated and experienced administrator and public servant such as Mr. John Mason. Mr. Mason spearheaded such politically and administratively complicated projects as “congestion pricing” and he has already helped redefine the dynamics of taxi and private hire regulation. He has a “Bond” with the drivers which has not existed in a long time. “007” is a lucky number and we have high hopes that “the sky will not fall in London!” © 2013 TLC Magazine Online, Inc. |
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