Private Hire’s Great Developments
Which factors have been the most influential in shaping the private hire trade over the last 40 years? Here is the first of a few candidates:
Number 1 - The Two-way Radio
Despite plenty of demand, the supply of passenger services is restricted by the rules covering plying for hire. Almost 50 years ago a few enterprising fellows set up businesses to take telephone bookings from the public and farmed them out to fleets of cars on the road. The minicab was born. The key to keeping in contact with drivers was the two-way radio. It may not be the most earth-shattering bit of kit ever to have been invented but it is an important communication tool in many sectors and has been indispensable to private hire. Nowadays, with GPS and mobile phones, the days of the radio may be numbered. The masts may be coming down but perhaps we should erect one in bronze somewhere as a tribute to the system that helped get millions of people home.
Number 2 - The People Carrier
In Echo 99’s Spring 2008 issue we profiled the Renault Espace, the granddaddy of the multiple passenger vehicle (MPV). A whole host of similar vehicles followed. In fact the first MPV was the Chrysler Voyager in the US, the latest incarnation of which can be seen on London streets, many with PCO licence stickers. The MPV has meant regular business for the trade: families on their way to the airport, groups on a night out, wedding parties and corporate delegations. In these eco-conscious days the emissions per passenger can also work out very favourably.
Number 3 - Competition
What makes private hire so vibrant is that it does not suffer from the limits imposed on the black taxi trade. Customers can chose from hundreds of companies, many different makes and model of car and a range of prices. Operators use a variety of factors to distinguish themselves from the competition: fleet size, value for money, driver experience, environmental impact, local knowledge…and long may it last!
Number 4 - Licensing
It took a long time coming and the black taxi trade with their political friends did their best to scupper things but common sense prevailed. Private hire licensing in London is not perfect and it could be simpler but it is here and it works pretty well. Most importantly it serves the people who should be put first when deciding transport issues - the travelling public.
Number 5 - Satellite Navigation
The value of satellite navigation lies not only in route guidance. GPS, the technology which underpins it, also enables vehicle tracking. Tracking data can help resolve disputes whether it involves the passenger, the driver, the operator or the authorities. It also improves the efficiency of allocating vehicles to jobs, which means less empty driving time and better customer service. The effects of this technology will continue to be immense.
Number 6 - Text Messaging
A customer receives a message on their mobile phone telling them that their car is on its way and receives another message when it has arrived. This simple use of available wireless telecommunications technology has positive effects in terms of fleet efficiency, customer relations and passenger safety. The more switched-on private hire firms have been quick to embrace technologies which serve them, their drivers and their customers well. Those that sit still are often left behind.
Number 7 - Online Booking
The internet is not a threat to the trade but an opportunity. Websites can help improve the image of operators and the trade in general. Only around a quarter of London operators have websites and many of these do not say much. However, many websites let customers book cars online as an alternative to call centres. Mobile phone booking is next in line.
What do you think is the most important development? Let us know your thoughts.

