Plan Insurance Blog

The Affects of Covid 19 on the Taxi Industry

In these unprecedented times the future is very hard to forecast but as the saying goes, forewarned is forearmed. Although events are still unfolding and may take a dramatically different turn we’ve attempted to predict some of the more probable outcomes of recent events:

Consolidation of Taxi Apps – business models for many fledgling firms with their high capital requirements will have gone out the window as work from tourists and business travellers completely ceased. We’ve already seen Kapten and Free Now merge. Will more follow as a consequence of reduced revenue levels as the market takes its demand to return to previous levels?

Reduction in Taxi & Private Hire Driver Numbers – reduced demand from an economy in recession meaning older drivers call it a day. Also some drivers that failed to keep their financial heads above water during the lockdown may take the opportunity to explore new means of employment.

Taxi & Private Hire Drivers Doing More Deliveries – the need to supplement income has never been more apparent. Many industrial drivers were quick to begin working with courier apps and food delivery companies to meet the rapidly emerging market demand. With new trading relationships formed and habits established its likely that these entrepreneurial undertakings will continue even as the dust begins to settle on Covid 19 crisis? However insurers have stated that the free cover upgrade on policies to include these types of deliveries on a frequent basis are temporary. Once additional premiums are required to be allowed to fulfil these job requests then the economics might no longer add.

Environmental Concerns to Take a Back Seat –many drivers, businesses, councils and even governments will be struggling to recover financially after the devastating impact of the crisis. Therefore logic dictates that the schedules for any initiatives requiring significant time and capital that are likely to place additional strain on budgets and cause further hardships for individuals already straining to cope with the fallout will be delayed. Transport for Greater Manchester (TFGM) have recently announced that the statutory consultation on the Greater Manchester Clean Air Plan will be postponed. Similar proposals in other cities are likely to encounter the same fate.

It would be great to hear what drivers believe will happen based on their extensive industry insights? Please get in touch via our social media channels to let us know your thoughts. You can also visit our FAQ page for information regarding the assistance that Plan is able to provide to our clients during the Covid 19 crisis.