Following a reduced demand during the Covid lockdown as the hospitality and school sectors were largely affected, many drivers left the taxi industry to work in other sectors. After suffering a financial crisis and shortage of demand, the drivers were left no choice but to look for other sources of reliable income. These affected drivers naturally moved to other transportation sectors such as courier & food deliveries. Many insurance companies were offering free policy upgrades to accommodate this industry change.
In addition to the above, the industry has also been affected by the increase in inflation and fuel prices. It has become more and more difficult for drivers to make an adequate living whilst keeping up with running costs of licensing fees, insurance, vehicle maintenance and living costs. The minimum wage has been known to be increased on a yearly basis however this has not been reflected in the private hire sector for a number of years.
In the past 24 months, the food and courier sectors have continued to grow and thrive sustaining the newly acquired drivers causing a long term shortage in the taxi industry. This has had a direct impact on taxi companies nationwide since we have returned to some sort of normality post-Covid lockdown restrictions. The demand for taxi transportation has significantly increased surpassing previous levels. We at Zip are doing everything to encourage drivers to return or join us in providing an adequate service to our customers.
The taxi industry is at an all-time high however due to lower levels of drivers, there has been increased customer waiting times affecting the quality of our services. At a scope, it could take 12+ months for new drivers to come into the industry and enable the service levels to return to normality.
If you’re interested in joining Zip as a driver, please visit our private hire driver recruitment page for further information.