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Deregulated Taxi

This could be one of the most important pieces of taxi knowledge that you will read this year in any taxi magazine. Swedish taxi drivers were recently involved in rioting following deregulation. The word ‘deregulate’ rightly spreads fear through any civilised taxi system and it isn’t beyond the bounds of possibility that our current Government, once they licence minicabs - something that now seems inevitable - could look at deregulation over here. Call Sign asked international journalist and part-time Stockholm cab driver Peppe Arninge to give DAC readers an insight into the world of… DEREGULATED TAXI DRIVING IN SWEDEN

A special Call Sign report from Peppe Arninge in Stockholm
Photography by Dennis Thern and Peppe Arninge.

Firstly, about Peter "Peppe" Arninge: Age: 38, born in Stockholm, Sweden sharing his time between there and Bangkok (Thailand). Occupation: Journalist. Studied Journalism, Film and English at the University of Stockholm. Plus exams in information, copywriting, newspaper design and editing.
   Hobbies: Driving a cab at Taxi Stockholm on weekends: "This has been a part of my life for almost 16 years. I don't really need the income, but I like the character of the job. And it's relaxing behind the wheel"
   Also worked part-time as a weekend dispatcher for almost three years at Taxi Stockholm during his studies. "Great fun. I was called The Dictator as I always wanted to have full control of the 450+ cabs on the circuit. My personal record in serving the passengers with taxis is 325 incoming calls and radio announcements in one hour."
   The future? "I will stay in Bangkok for another three or four month period, starting on January 6 1998. After that I have to come to London and drink some beer with everyone at DAC - especially if Alan Fisher is paying"! (Sorry, what was that? I wasn’t listening!…Ed)

ABOUT STOCKHOLM

  • 9 million people.
  • 5,000 taxis.
  • Taxis can, like in London, be easily hailed on the streets.
  • Radio dispatched taxis must be at the pick-up address in 5 minutes (within the city limits) and within ten minutes out in the suburbs.
  • Receipts must by law be provided to every passenger, whether they demand one or not.
  • All major taxi companies accept credit cards. Each card is checked on-line (radiolink) and the taxi owners (not the companies) have to pay the 3% card charge.
  • Cars used as cabs in Stockholm: Volvo 850, Mercedes, Audi, Volkswagen, BMW and Peugeot. Most of them are diesel.
  • Drivers average 12-14 hour shifts, 6 days a week..
  • Salary for employed drivers: 37% on what is on the meter, minus 30-40% in tax.
  • Average meter income a day: £120.
  • Total taxi companies in Stockholm: About 21, each with their own price list.
  • Total taxi companies in Sweden? Thousands - thanks to deregulation.
  • GPS: Still not implemented. Tests are running for the moment and many drivers want it, but cannot afford it. Data Dispatch in use.
  • Average taximeter fares: Flagfall £2,54 Per kilometer £1,90
  • Per hour (waiting time) £32 (Ed’s note: Yes, £32 an hour, I double checked!)
  • Average price for a 10 minute fare within the city limits: £10. A tip is included in all taximeter prices.

BEFORE AND AFTER DEREGULATION
After more than seven years of deregulation, the situation for the honest and hardworking Swedish cab driver is still the same. Trying to survive on an income level lower than the minimum standards of the Swedish social welfare law. Many drivers have suffered badly both from nervous breakdowns and heart attacks as well as personal bankruptcies and heart-rending divorces.

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By using inspectors (yellow jackets) to control central station, arriving passengers

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One of the taxi owners at Taxi Stockholm

But why this situation. And what happened to the taxi industry to put people within it in such an unprofitable position?
Well, before 1990 there was only one major taxi company in each 
Swedish city. Permits, which were very tough to obtain, were issued by the City Council in each community after a thorough check of the cabby's credentials and background. One mistake, like a speeding ticket, was enough to refuse an applicant a permit to operate his or her own cab for years. And as this wasn't enough, there was also a queue to get the chance to apply for a permit - in most cases a waiting period for 12 years or more.
At the same time, these were the golden years of the Swedish and European economies. The yuppies overflowed on the streets of Stockholm and hailing a cab, which at the end of the 70's and the first years of the 80's had been considered a bit luxurious, was something everyone did around the clock! These were great times for the Swedish cabby and most of the guys and gals made good money. Some even made small fortunes.
But times change. During the autumn of1988 the Conservative's, together with the Liberal's, proposed a total deregulation of the Swedish taxi industry. With arguments not even close to reality, they convinced the Social Democratic leadership to vote ‘yes’ to the new ideas; a campaign that succeeded after an intensive lobbying period within the political parties and among their representatives.

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