PROBLEMS OF THE HAULIER AND CARRIER.
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Starting in Business With a Taxicab.
tr HERE are many who look upon the life of a
taxicab driver as enviable rather than otherwise, and one which incidentally brings in a good weekly income. There are thousands of cases whih bear out their contention, but a Certain amount of care should be exercised in making plans for joining the ranks in the first case, as there are several pitfalls into which those with little experience may fall, and, as often occurs, the recruit has had little or no previous knowledge of the type of business.
At the moment I have a specific inquiry before me with regard to taking up a taxicab driver's occupation from one who has no mechanical knowledge. There are many things which he wants to know, including he type of cab, the cost, the operating costs, driver's wages, and general points connected with the upkeep and working of such a vehicle.
The Cao to Comply With Local Requirements.
With regard to the type of cab, the first essential is that it should be of a suitable specification to comply with the requirements of the local licensing authorities. No doubt the inquirer will observe several different makes of vehicle in use in the streets of the city to which he refers; therefore it will probably be his best course to make a note of the various types which are actually in operation and to make his choiee from among that number. Prior to taking any steps with regard to purchase, he should obtain full details from the local authorities as to their requirements, which, I have no doubt, are set forth in print ; several, people have spent money in vain in purchasing a cab which could not be approved or licensed. In a later -paragraph I will deal with the cost of the cab.
A hackney carriage licence must be taken out for the cab, the proprietor must obtain a licence to ply for public hire, which means picking up fares in the streets, also licences for himself or other drivers who will take a turn at driving.
The operating costs are the next item. Ope of the essential points is to fix upon the probable average weekly mileage in order to ascertain what the expenses and income will be. I propose taking two figures, 200 miles and 300 miles per week, and comparing the profits derived from running the vehicle for these distances. About three-fifths of the weekly total will be paying miles, the remainder being "dead," running back from outlying points to the rank, or driving round looking for passengers.
Fifteen m.p.g. will be about the average fuel consumption, and the cost for the Purposes of this estimate is taken at 1s. 3d. per gallon. To garage the cab, the supply of oil, the necessary washing, maintenance of lamps and so forth will cost about 17s. 6d. per week ; a set of tyres will run about 10,000 miles and cost some 116. Annual repairs and maintenance for a vehicle in good condition when purchased should be somewhere about £25 per annum, or 10s. 6d. per week, say, including the hire of the taximeter. Depreciation will total approximately I d. per mile, and the standing charges will be, licences, approximately 6s.; insurance, Ss.: whilst interest at 5 per cent. on 'a cab costing £650 will be /2s. 6d. per week. For a distance of 200 miles, working on the figures previously given, the total expenditure will be about 14 16s. 6d.
Now let us take a 300-mile week. The standing charges will be the same, but the running costs will be proportionately higher and the total about £5 19s. ; What will a cab earn per week when driven by the owner only? In the first case, if 200 miles are covered, only 120 of these will be paying miles. At a fare rate of 1s, per mile this will mean 1.6 received, plus extras and tips, say 10s., giving a total of, 1.6 10s. Subtracting the operating costs, the balance will be only £1 13s. 6d.
When 300 miles are accomplished, 180 of which are paying miles, £9 will be received, plus, say, 15s. for tips, making a total of 19 15s. in all, less the operating costs, 15 19s. ;....this leaves a balance of 13 16s., which is more like a living wage.
Some weeks may produce consiaerably more income than is indicated in the foregoing paragraphs, but it should not be forgotten that prob ably one two weeks per annum will be spent off the road entirely, while varnishing and annual repairs are being carried out, which are usually insisted upon by the licensing authorities.
It will be seen that the margin of profit is not great when the cab is worked by the owner only. Of course, there are many possibilities which should not be overlooked, such as the formation of a regular clientele, which is relied upon by many drivers to produce a higher income, the gathering of a fund of local knowledge as to the whereabouts of the best paying fares, the reduction of dead mileage, and so forth. Experience will help to increase the revenue considerably, but estimates should not be based upon hopes alone, but upon facts which may be ascertained with a fair amount of accuracy.
The Employment of Journeymen.
With regard to the driver's wages, it is more often found that the employment of a " journeyman " driver to help the owner is a paying proposition, in that the weekly mileage is increased by working double shifts. It should be remembered that when this practice is carried out the running costs are naturally increased, but the standing charges remain the same. In other words, the cost of operation per mile is reduced and the total earnings are increased. A common practice with regard to the payment of the "journeyman" driver is for him tO take 3d. in every 1s. recorded on the taximeter, and all extras and tips whichhe receives during his working hours..
As to the cost of the cab, I have left this point until the last, involving as it does one or two factors which can be realized better when the weekly income is estimated. The type of vehicle which I should imagine will be likely to meet with approval by the particular authorities will cost in the region of £600 to £700.
If hire purchase be considered, it should be remembered that weekly payments, probably about £3, will have to be made for several years, and therefore the necessity for obtaining the maximum service from the vehicle should not be overlooked, as the money must be paid or the cab is forfeited, when the income obviously ceases. If the purchase be a cash transaction the vehicle immediately becomes the property of the owner, and he has the satisfaction of knowing that should he decide to give up the business, he can realize on the cab. Provision has been made in the running costs for depreciation ; therefore, in all probability he will not be out of pocket on the deal to any appreciable extent if such an unfortunate occur rence were to take-place. S.T.R.