Private hire car overprovision: independent assessment tool for local authorities

4 Potential Tests for Overprovision

4.1 Passenger complaints

Absence of passenger complaints may indicate that there is adequate provision of private hire services. This may also indicate that there is existing overprovision of private hire services, or that the licensing of more private hire cars could lead to overprovision.

The existence of passenger complaints may indicate that there is insufficient provision of services at times or in some localities, or for some sectors of the community.

It is prudent to check the veracity of any complaints before relying on the level of complaints as an indicator of overprovision or otherwise.

4.2 Driver ratios

Lower driver ratios may be an indicator of overprovision. Whether a ratio is felt to be low may vary by locality.

4.3 Driver turnover

A high level of driver turnover may be an indication that drivers find it difficult to make a living as a driver. This in turn can be an indicator of overprovision.

4.4 New businesses operating in a locality

New businesses may drive additional recruitment for drivers and may, in turn, lead to additional licensed vehicles becoming registered. If the increase in drivers and / or vehicles is sustained for several years, this could lead to overprovision. The effect of new businesses operating would be viewed in conjunction with driver ratios and driver turnover.

4.5 Reduced vehicle mileage

A trend of reduced vehicle mileage may indicate that fewer hires are being undertaken. A change in average annual mileage should be viewed against changes in the number of licensed vehicles and changes in the number of licensed drivers.

4.6 Driver availability to cover night-time demand

If there is evidence that drivers are generally unwilling to work at night, this may be an indicator that drivers can derive sufficient earnings during daytime working to achieve targets. Such a scenario may indicate that there is not overprovision.

4.7 Level of multi-shifting

High levels of multi shifting tend to occur along with higher driver ratios. If there is also high levels of driver turnover, this can be an indication that income levels are not sufficient to sustain the number of drivers. Higher levels of multi-shift operation which are not coupled with high driver turnover, indicates a sustainable level of income and suggests that there is not overprovision.

If there is anecdotal evidence of people working excessive hours, it is prudent to take such information into account when considering the ratio of drivers to vehicles and multi-shifting activities.

4.8 Pirating activity

If there is proven evidence of pirating activity (private hire cars touting for hires without being pre booked) this may be evidence that there is insufficient demand to sustain the private hire car fleet. However, pirating activity should also be viewed against the context of taxi provision. If taxi availability is limited, pirating activity by private hire cars may also relate to lack of available taxis.

4.9 Extended wait times between hires

If there are periods when driver are waiting for extended periods between hires, at times when they would be expected to be relatively busy, this may be an indication of overprovision. The wait time which may be considered to be extended will vary by locality and time of day.