Travel cost cut to £1 in Ribble Valley taxi war
2:40pm Wednesday 2nd September 2009 in News
COMPETITION: Taxis are fighting for business by slashing prices
A SECOND East Lancashire borough is in the grip of plummeting taxi fares after rival operators slashed prices.
Firms in the Ribble Valley are running private hire taxis for a minimum fare of just £1, from a previous low of £3.
Unlike hackney cabs, the council has no powers to set the minimum fare of private hire vehicles, meaning that prices are completely subject to competition.
Now two firms in Clitheroe are determined to out do each other, with Budget Cabs and Ray’s Cars continuing to lower prices.
Alex Lee, operator of Ribble Valley-based Alex’s Private Hire, said it was ‘hardly worth bothering’ for such prices.
He said: “It is not worth starting the car for £1.
“It’s just not feasible once you have paid for fuel, insurance and tax.
“Prices have been slashed dramatically and a lot of other local firms just aren’t interested in competing with that.
“I can’t see how they can make a profit.
“We have only been here since February but the price wars have made no difference to us.”
A driver from another rival firm which has not cut its prices, who did not want to be named, said most companies were holding their prices.
“A lot of the private hire comp-anies have their regular and loyal customers,” he said.
“We have not really been affected by it and we are sticking to our guns.”
It can cost around £10,000 a year to run a taxi and drivers have to pay the operators a share of each fare.
No one was available to comment from Budget Cabs or Ray’s Cars.
Last week it was revealed that the minimum fare from some Hyndburn firms had dropped to £1.50 amid a price war.
Ribble Valley councillor Ruth Hargreaves said: “I have heard about the cheaper fares but I don’t think the drivers are very happy about it.
“The drivers and firms are offering journeys around Clitheroe for £1 but I think they are doing it more because they feel they have to.”
Ian_G says...
11:46am Thu 3 Sep 09
Why have the LET written this story as though it is a bad thing?
It won't last and in the meantime, people get the benefit of the lower fares.
Rest assured, they'll be up to their usual tricks in due course.