Dial-a-Cab and Minicabs
Prompted, as always, to peruse any article with the mention of
cabs, the strap line “Hail the cab crusader” in a recent edition
of the Financial Mail not so much grabbed my interest, as the
accompanying photo of Orson Wells and Addison Lee’s John Griffin
- aka Citizen Kane reincarnate - who is launching a magazine
investigating the bad practices of his competitors! Exactly how
close he hopes to emulate the financial success of the fictional
publishing tycoon Kane, I’ve no idea, particularly as the
readership is likely to appear of interest to the odd English
speaking asylum seekers driving rust buckets cum minicabs and
the various scribes in our own trade papers who appear to agree
with some of his views, particularly those concerning the
denigrating of the radio circuits.
I have never met Mr Griffin, so have no personal view of him as
an individual. However, so far as his company is concerned,
their name has cropped up probably more than most within the PH
industry when being compared with on-cost. In fact, as many of
you already know, only very recently we lost one of our longest
serving and lowest charging clients to Addison Lee, only for
them to lose it themselves - so it alleged - within a matter of
weeks. And thereby lies the damage done to our industry by
certain PH companies who win contracts with all sorts of
ambitious claims, only to discover they cannot be met –
especially when trying to match our ASAP times. Unfortunately,
it’s only when a client experiences this fact that they realise
their error, but are then reluctant to admit it by asking us to
reopen the account. So we all lose, which is not exactly good
business practice and one example Mr Griffin could well use in
the first issue of his magazine.
Obviously I feel aggrieved at losing a valued client to any
competitor and particularly a valued one who we have serviced
for over 25 years, but losing it is not the reason I am
mentioning Mr Griffin, it’s his published comments concerning
Dial-a-Cab, our Concierge system and the allegations that we
supply minicabs. You’ve probably read enough about Concierge in
Call-Sign over the past few months to bore you to tears, but
surprisingly there are still quite a few of our members who
through repeatedly reading articles such as Mr Griffin’s and
those in the trade press, are not entirely sure or fully
convinced about our role with private hire and worse, I
personally am regularly being accused of marketing a service
that just does not exist.
So for the record yet again, as the person responsible for
marketing I would like to state categorically that no
promotional material of any description, advertising or sales
brief has ever gone through my department promoting, encouraging
or even intimating the supplying of any vehicle other than a
recognised licensed London taxi. However having said that, there
is no knowing what the future holds, and if it means our very
existence is dependant on a change of policy then a change it
must be.
Unfortunately, any mention of change and up go the arms of the
militants and those still stuck in a time warp whose gripe is
nothing more than age-old principles - principles based in the
main on arrogance, short-sightedness and ignorance. Arrogance,
because they have a badge and with it a dogmatic belief that
nobody should encroach upon what they believe is rightfully
theirs. Short-sightedness because they cannot see beyond today
and ignorance because they do absolutely nothing by way of
learning the facts. I have often heard it said that the appeal
in DaC remaining a Friendly Society is that the drivers have
control. It’s a good point, but how much do they know about what
are they controlling? In all the years I’ve been on the Board,
I’ve have never had even one driver ask to visit Brunswick House
to view, for example, the Sales & Marketing department, to see
what we do and how we do it.
Principle is a wonderful word, but how many can afford to have
them? More importantly, how many have allowed principles to
cloud their logic and have it jeopardise the future of our
Society? I would guess that the most, if not all, of the present
group of so-called militants were not members when our Society
nearly closed, or have yet to experience the damage to their
pockets that principles, short-sightedness and arrogance can
cause. The following two of many examples during my time on the
Board, just might make them view things a little differently.
How to Lose Accounts!
My very first experience came when I’d been on the Board
just a few months. Our then largest and most valued client was
the BBC in Wood Lane. Work was called from the Bush rank, which
was always busy because many of the journeys were lucrative and |
regular - so regular that many took them for granted. Then one
day all hell broke loose and not just with the drivers but also
by members of the then-Board at the news that the Beeb were
putting the account out to tender. Even worse, the Beeb wanted
to share the account between two circuits and put a rank outside
their premises to reduce their run-in costs. Being a new Board
member who for the previous 20 years had been running my own
business, I couldn’t believe the attitude and the arrogance of
our negotiating team at what they believed was the BBC’s
audacity at making such an unacceptable proposal! Not once was
there any thought put to at least salvaging some of the
business, instead their logic and anger was dictated purely by
principles. It was no surprise to see that arrogance result in
us losing the account completely.
The second example again concerned our then largest account.
This one was based in the City and was one that I personally
nurtured for several years and played a big part in retaining
when continuous problems were threatening its closure. The
account was very lucrative -particularly for those who worked
the Finz. But as with many large taxi users, their taxi
expenditure eventually becomes an issue and cuts needed to be
made. On being made aware of this fact and the figure they
intended to achieve for the following year, plus to avoid
forcing them to put the contract out to tender, we offered a
reduction in our gratuity from 12.5% to 10%. This they accepted
and we retained the account, but the opposition by a section our
Society was beyond belief, I was verbally abused for months for
no other reason than on principle and arrogance in the belief
that the driver’s gratuity was sacred and should never be
touched. There was no thought at all to what I had achieved,
only to the 2.5% they had lost.
Unfortunately, the abuse didn’t
just stop with me, our then little group of militants felt it
just to voice their displeasure at the passengers as well. That,
together with other issues, resulted in us eventually losing the
account completely.
When one considers the length of time we have been in business
servicing the corporate and private sector with taxis, had we
been a private concern our fleet size by now would probably be
well in excess of 5 - 6000 vehicles and would have played a
major role in restricting the growth of minicabs to what they
are today. But instead, we have plodded along, being governed by
our members, many of whom have not a clue of what’s happening at
the sharp end of running our business. This is not a criticism,
just a statement of fact.
Let me give you a typical example: One year at an AGM a driver
proposed that every client should pay waiting time, I argued
that it would take away my ability to negotiate. My plea fell on
deaf ears and the proposal was carried by a huge majority,
indicating that those voting in favour could see no further than
their pockets.
They just couldn’t see the advantage this gave
our competitors and the damage it was going to do to us - and it
did!
Why Clients Use Private Hire
Now to the principle factor which concerns the supplying of PH.
Some of you may prefer to think otherwise, but cost is not
always the reason why clients want to use PH. In many instances,
it is simply as a back-up supplier to their primary vendor.
Clients who spend £millions on taxis want a 100% service all the
time, not just when it suits our drivers. It may interest some
of you to know that in Sales there is a word we have never been
able to use to our clients. That word is guarantee. We cannot
guarantee a service and not just we at DaC, but also our
opposite numbers at the other radio circuits. This is a major
weakness when doing a sales pitch to a client who is offering a
taxi contract valued at several million pounds. Try explaining
to an irate client, who having booked a cab two weeks in
advance, is being told 20 minutes before the cab is due that we
have nothing in the area! Fortunately, this doesn’t happen
often, but it can happen and when it does we are in no position
to be bolshie and possibly lose all the business when the client
informs us that we cannot be relied on as sole vendor and that
they intend using PH as a back-up. Obviously, any company -
whether PH or even ourselves - when acting as back-up to the
preferred supplier, push continuously to increase their share of
the work, so it isn’t difficult to see how some of the PH
companies
have grown to the size they have and how they have secured a
foothold in many large clients.
Like it or not, PH is now legal, they are licensed by the PCO
and they are here to stay. Little - or I should say nothing -
was done |

during my years of writing in Call
Sign of the dangers threatening our industry from minicabs. I
gave
the facts as heard from countless clients, I begged, whinged,
moaned and insulted to get many of our members attention and for
them to realise the need for change. I was a one-man crusade on
a pointless campaign and for my efforts, I created a reputation
as the Society’s Aunt Sally, the Board member everybody loved to
hate! The only beneficiary was the editor of Call Sign, whose
mail box was rarely short of letters slagging off ‘Toggers’.
Now of course, the inevitable for doing nothing is that some of
those PH have now become giants - and how do you contain a
giant? Well interestingly enough, whilst I had little success in
getting all of our individual members to act of their own accord
to contain the threat of PH, our Concierge system is the next
best thing. So I’ll finish this little missive as I started ie
with the mention of one such giant - namely Addison Lee. For
those who haven’t read Mr Griffin’s article in the trade press,
he is whinging about the much sought after one-stop-shop package
that many of the large corporates have been pushing for several
years and which the radio circuits are now offering clients -
including private cars. Our two main competitors now have their
own fleet of cars, so have no need to sub-contract out that
work. A number of senior clients already have contracts with PH
firms, but still need the one-stop principle, which is where our
Concierge system comes into its own. Through innovative and
brilliant technology developed in-house, Concierge is able link
the clients PH company/s - assuming they have the technology -
with our own and thereby allowing us to manage the complete
transport usage. There are only so many PH firms that can be
part of this package, which means there are quite a number of
these PH giants – including I suspect Addison Lee - who having
no licensed radio circuit to get into bed with, will be left out
in the cold.
With this being the case, we should all take advantage of it. So
could I respectfully suggest, particularly to those members of
ancient principles and those handy with the use of clipboards
and handing out letters, to realise the enormous benefits that
can be gained by being receptive to what their Society has to
offer, what power their Society has by being on the inside
controlling the situation with Concierge for example, and how so
much more progress could be made and quicker if we ALL played a
constructive part in keeping our Society not just at the top,
but even more successful still.
Barry’s Lesson in Radio Circuit History…
And finally, whilst I rarely comment on specific articles in the
other trade papers, I do on this occasion feel it prudent to
correct certain facts of one article in Taxi by Barry Hooper,
who by co-incidence just happens to be amongst those scribes I
mentioned earlier concerning the views of Mr Griffin. Barry, on
this occasion, uses his regular spot in Taxi to give a history
lesson on the birth and fate of radio circuits. He starts by
stating the difficulty for drivers getting on those circuits
then and in this instance for DaC it was because of the
short-sightedness of those running the circuit. Well, as that
same short-sightedness still applies to this day and, being part
of the present Board, I feel qualified to inform professor Barry
that had he undertaken a modicum of research, he would have
discovered that the reason Dial-a-Cab have always had a waiting
list for drivers - something Com Cab or Radio Taxis have never
had - is because our policy has always been to have a fleet size
proportionate to the volume of business, thereby guaranteeing
each of our drivers x number of trips each per day. At any time
in our history, we could easily have had and boasted at having
the largest fleet in London, but it would have been to the
detriment of our members. Prof Barry then goes on to criticise
the manner in which Radio Taxis and Com-Cab are now run and then
considers it his business - no doubt on the basis of his
remarkable foresight and expert opinion - to warn our members of
the fate that lies ahead for our Society should we ever decide
to change our status of trading. Barry, if you are reading this,
I mean no disrespect to Taxi, but you are wasting your talents.
The Economist is one of our clients and I’m sure our Chairman -
who you know very well - would be happy to give you a reference!
Allen Togwell
DaC Marketing
allent@dialacab.co.uk |