As you will be aware, the UK is continuing to go through a difficult period economically for a variety of reasons. Having come through the pandemic, we are now seeing the rate of inflation increase significantly and this is having a detrimental financial impact upon an awful lot of families. So, how could this affect the business of a taxi driver?

Well, quite simply, if people are having to tighten their belts financially as a result of rising rent and mortgage repayments, higher utility bills, increased cost of food etc etc then they may have to cut back on what could be described as non-essential things. For instance, perhaps some people will decide not to go out so often on an evening to the likes of clubs, pubs, theatres and restaurants. Some of those people will have travelled to and from the venue by taxi so that would mean that the taxi sector would see a reduction in fares.

Although a lot of people will have booked an overseas holiday quite some time ago there will be others who did not and, as a result of their increase in household expenditure, decide not to travel abroad and instead take a holiday in the UK. As a lot of people use a taxi or private hire vehicle to take them to and from the airport a taxi business may see a drop in their income.

It is going to be interesting in the coming months to see if the economic situation in the UK has a negative impact upon taxi drivers. Of course, we hope that it doesn’t but what can taxi drivers do if it does? Well, they can shop around for buying their petrol or diesel to see if they can source cheaper fuel. Is it possible to work longer hours to make up for fewer customers? By providing a first class service may result in people tipping more.