£6000 Fuel Hikes Could Push Many Taxi Drivers into Insolvency

London insolvency firm Company Debt forecasts a wave of insolvencies and business failures within the UK taxi sector.

As a regulated industry, tariffs aren’t rising fast enough to match the higher costs faced by drivers. In fact, Company Debt’s data suggests that taxi drivers may spend up to £6000 more in 2022 on fuel.

Fuel isn’t the only challenge cabbies are facing right now: Director of The National Private Hire & Taxi Association David Lawrie, sounds the alarm:

“Local authorities are implementing new criteria such as electric vehicles or CCTV, and this is going to have a financial impact on the industry as a whole.

In fact, many operators are struggling to get drivers. A lot of private operators do not want to put their prices up to keep their clients, but on the other hand, many drivers are struggling to make a wage.”

As a result, many go away from driving careers to feed their family.”

A combination of factors that results in a significant shortage of drivers around the country.

Key Informations:

UK taxi drivers may spend up to £6000 more on fuel this year
The UK taxi industry is short of 160 000 drivers
Taxi running costs are up 20 to 25%

Access the full data here https://www.companydebt.com/articles/6000-fuel-hikes-taxi-sector/