Edinburgh Taxi Fares Rising 9.5% in December: Impact on Drivers and Uber Competition

Taxi fares in Edinburgh are poised for a significant increase of 9.5% starting Monday, December 9, 2024. The rise comes as part of the City of Edinburgh Council’s regulatory duty to review and adjust the maximum fare structure, as mandated under Section 17(2) of the Civic Government (Scotland) Act 1982.

This adjustment reflects the increased operating costs faced by drivers and aims to balance industry sustainability with customer affordability.

Details of the Fare Increase

Starting next month, customers will face higher fares across different timeframes:

• Daytime fares (6am–6pm, weekdays): A three-mile trip will cost a minimum of £11.50, up from £10.50.
• Evening and weekend fares (6pm–6am, weekdays, and all day weekends): A three-mile trip will cost at least £12.82, compared to £11.70 previously.

Additionally, the surcharge for taxi pickups and drop-offs at Edinburgh Airport will rise from £5 to £6. This additional charge has been a contentious point for both drivers and customers, reflecting the operational challenges unique to servicing high-traffic areas.

Licensing and Regulatory Context

The City of Edinburgh Council holds the responsibility of setting maximum allowable taxi fares. Councillor Neil Ross, the regulatory convener, emphasized that while the rise “may seem like a lot in these relatively low-inflation times,” it is essential for reflecting the economic pressures on taxi operators. He pointed out that the costs of vehicle maintenance, insurance, and especially the transition to electric vehicles have soared.

“We know this is a maximum set of charges,” Cllr Ross explained, “and charges below that are perfectly legal. Operators have the discretion to set lower fares if they wish.”

This fare revision comes after a previous 20% increase in February 2023, marking a continued trend in aligning tariffs with market realities. The Council’s current adjustments, however, are less steep than the previous rise, suggesting a more measured approach in the current economic climate.

Edinburgh’s Standing in Taxi Fare Rankings

The new fare structure will elevate Edinburgh’s position in Scotland’s taxi fare ranking. Currently ranked 14th, Edinburgh remains competitive compared to other regions:

The updated position highlights Edinburgh’s efforts to remain competitive while addressing operational costs and sustainability in the taxi sector.

Public Consultation: Divided Opinions

The Council conducted a public consultation to gather feedback on the proposed fare increase. A total of 52 responses were received, revealing a sharp divide:

• 25% of respondents supported the fare hike, citing increased costs for drivers.
• 69% opposed the increase, raising concerns over affordability and the growing appeal of private hire services like Uber.

Comments Supporting the Fare Increase

Many respondents recognized the financial pressures on drivers and expressed sympathy for the trade:

• Driver A: “The costs of running a taxi went up astronomically, and drivers have had to take the hit. These rises will reflect the costs drivers have lost.”
• Driver B: “Between fuel increases and the cost of living, drivers completely deserve this tariff increase. LPG taxis, in particular, face rising costs and fewer refueling stations, which means drivers lose time and fuel traveling to distant locations just to fill up.”

Concerns Against the Fare Increase

Opponents of the fare hike pointed to affordability issues for customers and competition from private hire operators:

• Driver C: “An increase of 10% would be fine. Private hire should get the same increase to ensure fair competition. Without parity, private hire companies will gain an unfair advantage.”
• User A: “This will discourage me from getting a taxi as opposed to an Uber. If you live outside of town, like in Midlothian or Bonnyrigg, the cost becomes unaffordable for nights out in Edinburgh.”

The taxi industry in Edinburgh faces mounting challenges as it grapples with rising costs, competition from private hire services, and the transition to more sustainable vehicles. While some stakeholders see the fare increase as necessary for survival, others warn it could have adverse effects.

Positive Outlook

Supporters argue that higher fares are essential for the industry to remain viable:

• “The increase is very well-deserved given the high costs of vehicle maintenance and insurance,” said one respondent.
• Another noted, “Edinburgh’s taxi drivers have endured rising costs without adequate compensation. This fare hike acknowledges their struggles.”

Warnings from Critics

Many in the industry expressed concerns about losing customers to private hire services like Uber:

• “The taxi is already expensive and is affecting the trade,” one driver commented. “Competition from Uber, with their low fares, is making it harder for us to stay afloat.”
• Another driver warned, “The last increase turned many away from black cabs. A 9.5% rise could be the final nail in the coffin for the Hackney trade.”

Some operators have already sold their vehicles, citing unsustainable costs and declining customer demand.

Council’s Final Decision

Despite mixed feedback, the City of Edinburgh Council decided to proceed with the proposed fare increase. A report concluded that there was insufficient evidence to justify delaying or altering the adjustments. The Council reiterated that these are maximum fares, and operators are free to charge less.

Cllr Ross stressed the importance of supporting the trade’s transition to electric vehicles, highlighting the substantial costs associated with adopting greener technology. He acknowledged the challenges ahead but affirmed the Council’s commitment to ensuring a sustainable and competitive taxi industry in Edinburgh.

The Future of Edinburgh’s Taxi Trade

The fare increase marks another chapter in the evolving dynamics of Edinburgh’s taxi industry. With competition from Uber and other private hire services growing, and drivers facing unprecedented costs, the trade finds itself at a crossroads. Whether the new fare structure will sustain the industry or further drive customers towards private hire alternatives remains to be seen.