financial manager's report

 

The last time I wrote in Call Sign, I was criticised the following month by a DaC member for not confining my comments to the theme of 'what I did last month'. At the risk of causing the same reaction, I can say now that I have no intention of writing a 'what I did in the holidays' sort of article, it reminds me too much of primary school - besides which it might only stimulate further discussions as to why I did what I did!

MERGERS / TAKE-OVERS

We are experiencing major changes in various aspects of our traditional activities. The latest of the big financial mergers is between SocGen and Paribas, two French banks which according to the papers collectively employ 5,000 in London; job losses are forecast. This joins a growing list including Bankers Trust / Deutsche Bank, Morgan Stanley / Dean Witter and DLJ / Phoenix amongst our own customers. There are also changes mooted amongst the larger legal firms and it all means challenges ahead for our industry.
   These developments involving major customers of the radio taxi circuits will in due course mean that someone, somewhere, generally loses an important account. We all have an increasing reliance on their custom and ignore their requirements for improving and expanding services at our peril. Many operate 24 hour a day, 7 day-week businesses and expect their support services to cope accordingly by offering positive responses

Alistair Hill (10353 bytes)

to their own changing circumstances with service levels and flexible products at the top of the list.

AND WHAT IS THE ANSWER…?

How should we at Dial-a-Cab react? Some say that we need to offer non-taxi vehicles, additional services and to require drivers to cover all work offered. Others say the trade must respond with tactics which I believe would only demonstrate the backwardness of some sectors of this trade and confirm some customers' critical views.
   King Canute was unable to turn the tide and I believe the taxi trade will be unable to continue to resist changes to its traditional working practices without inflicting more damage on itself. Many big users already place over 50% of their ground transport outside the licensed taxi trade.
   From a business perspective I can only say that industries which fail to adapt to change seldom survive. They are usually forced to change - and it is always better to lead change rather than to react to it - otherwise they wither and die.

 

Other changes which are affecting us include the transition to a new internal accounting system which represents the conclusion of months of endeavour by numerous staff and suppliers. Bedding in takes time as does getting to grips with the changes from the previous system, but in due course it will offer significant commercial advantage and will streamline and simplify many internal. procedures.

THE FUTURE OUTLOOK

The general outlook for the coming few months seems to be for business to remain largely unchanged. Despite the occasional speculation of mergers within the radio circuits, a quick look at the structures of the organisations suggests such changes are unlikely as well as difficult to accomplish. As Friendly Societies we and Radio Taxis (London) would require the requisite approval of members to any proposals and far better options exist for winning benefits than merging / take-over. Furthermore, any outsiders looking to exploit opportunities in the ground transport business would almost certainly opt to set up their own organisation rather than try to manage an existing radio circuit where the members can simply walk away if they do not like what they see.
   Our financial performance this year to date is still buoyant although the records seen last year are unlikely to be exceeded. But we are still on the way to excellent results which should be a source of comfort to members although they cannot, as things stand, benefit directly from this situation.

Alastair Hill

Is It Legal?

Ever told your passengers about the legendary - but non-existent - "bale of hay" Hackney Carriage act? This series will look at some of the different acts each issue and ask you: Is it legal? London’s licensed cab drivers are answerable to some 37 Hackney Carriage Acts - some of which date back to the eighteenth century.
   This month: Anyone wishing to hail a cab in London should be aware that it is actually illegal to shout ‘Taxi’ while the cab is in motion. How many of your customers does that make into law-breakers?
And as for the drivers, did you know that you are breaking the law if you throw money out of the

window of your Hackney Carriage "…in order to cause alegal.jpg (9491 bytes) scramble by the public?" You didn’t know? Well then, Call Sign has just saved you some money!
   Spotted a dirty cab within the City of London recently? Well, it wouldn’t be too surprising if you did, as you are not allowed to clean your cab on any public highway within the boundary of the City of London. Has anybody told Allen Togwell…?

More next month…


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