The Rise of Uber. How Hartlepool Taxi Drivers are being squeezed out of the market.

How the increasing number of out of town licensed Taxi Drivers in Hartlepool working for Uber is squeezing local drivers out of the market, as drivers claim its becoming increasing unprofitable to continue to work.

20th November 2024

In recent years, Hartlepool, like many other towns across the UK, has seen the increasing presence of Uber, the global ride-hailing giant.

Whilst Uber’s rapid expansion has been hailed as a modern convenience for commuters in larger towns & cities & for customers seeking affordable transport options, the debate over its impact on the local economy has stirred up a whirlwind of challenges for local taxi firms, self-employed drivers, and the wider Hartlepool and Teesside area.

The impact of Uber’s rise in Hartlepool cannot be understated, with tensions brewing between the some taxi firms and this new wave of on-demand transport, we delve into the various issues surrounding Uber’s controversial operation in Hartlepool, and how it’s affecting the livelihoods of local drivers, businesses, and the wider community.

The Squeeze on Local Taxi Firms

Local taxi firms in Hartlepool have reportedly been feeling the strain as Uber’s presence in Hartlepool continues to grow. Traditional companies with decades of service are said to be facing ever increasing competition from a service that offers lower fares, fewer overheads, and, for many, greater convenience. Whilst Uber may seem like a cheaper and quicker alternative, for established taxi firms, the pressure, according to some has become overwhelming leading to fears that some local firms could be set to announce potential lay offs.

The increasing number of out of town licensed taxis in Hartlepool has reportedly not gone unnoticed..

Uber’s business model is simple yet effective: it uses an app-based platform that connects drivers with passengers, cutting out many of the traditional overheads and licensing fees that local firms have to contend with. As a result, Uber drivers can often charge lower fares, which makes it more attractive to customers. But for the local taxi firms, the result is a squeeze on already narrow profits and a growing sense of uncertainty about their future.

Impact on Self-Employed Drivers

Self Employed Hackney Carriage drivers in Hartlepool are said to be seeing their takings slump, as many drivers claim the upsurge of Uber in the town has had a devastating effect on their livelihoods

In Hartlepool, many self-employed taxi drivers rely on their private hire vehicles to make a living, with Hartlepool yellow Hackney Carriage vehicles deemed to be some of the safest & most well maintained vehicles in the country. However, as with the increasing costs of drivers having to maintain those vehicles to an impeccably high standard, the rise of Uber has left many drivers questioning their ability to compete with the lower fares and flexible working hours that Uber offers leading to many local drivers claiming that the dramatic upsurge of Uber in the town has led to a dramatic slump in their takings, leaving drivers feeling increasingly isolated in an industry that, for them at least,.... is no longer profitable .

While driving for Uber allows drivers to set their own hours, it also means working for less money, as Uber reportedly takes a significant cut of the fare.

This has caused a ripple effect on self-employed drivers who've invested thousands of pounds in private hire vehicles, only to find themselves struggling to maintain those vehicles, pay licensing fees, and cover the costs of insurance. Despite these hefty costs, many drivers feel forced to either lower their rates or work even longer hours just to stay afloat.

For many of Hartlepool’s taxi drivers, Uber’s business model appears to offer more rewards for drivers operating in areas like the larger cities, but offers fewer benefits for those working in smaller, more rural towns where demand is inconsistent & the market share is increasingly precarious.

Knowledge of the Area: A Growing Concern

One of the main criticisms levied against Uber drivers in Hartlepool and across Teesside is their lack of knowledge about the towns they're driving in. Many traditional taxi drivers pride themselves on their extensive understanding of Hartlepool’s local roads, streets & landmarks, as well as the fastest routes to key destinations, offering passengers both a personalized and efficient service.

However, Uber drivers, who often rely upon GPS for directions, are seen as having little or no knowledge of the local area they're working in. This can result in longer journeys, inefficient routes, and a sense of alienation for passengers who are used to the familiarity and expertise of local taxi drivers. It’s also reportedly led to frustrations with longer wait times or drivers who are unsure of how to navigate the often-complex road layouts of the town.

Local passengers, especially older residents or those with mobility issues, may feel that Uber drivers don’t have the same level of commitment to the community, which can lead to a more impersonal and sometimes frustrating experience, with one Hartlepool Taxi Firm only recently taking to social media to remind its customers that they are still in comparison to its competitor (Uber) working out the cheapest & asking customers to continue to support them & their local drivers.

Its raising calls for intervention by the local council to curb out of town licensed taxis operating in the area.

According to a recent report published online, its claimed One-in-five private hire vehicles in England, such as Ubers and minicabs, have obtained licences from Wolverhampton City Council, where they are cheaper and less stringent on backgrounds checks than in other parts of the country.

This has led to claims that the apparent 'loophole' in the law regarding licensing is allowing drivers in to bypass tough safeguarding rules introduced after a 2014 child sex abuse scandal.

Hartlepool Borough Council's licensed Taxi drivers are said to go through some of the most stringent background checks of any local council across the country, with fears drivers coming in from other boroughs aren't facing the same stringent checks leading to fears regarding public safety & calls for the local council to do more to prevent out of town licensed drivers from effectively 'undercutting' drivers who've paid thousands of pounds to be licensed by their own local councils to operate.

Another issue that many local drivers are said to face is the significant operational costs associated with maintaining their own private hire vehicles. In Hartlepool, as it is across Teesside, taxi drivers are required to ensure their vehicles meet local licensing regulations, undergo rigorous safety checks, and comply with strict insurance requirements. These costs can run into thousands of pounds each year not to mention the costs of being background checked & licensed by their local councils.

Local taxi firms such as Hartlepool's 23 Taxis also must pay for their fleet’s upkeep, whilst self-employed drivers are responsible for covering the cost of vehicle maintenance, repairs, and licensing fees out of their own pocket. In comparison, Uber drivers often operate with a far lower threshold for expenses, as many use their own cars to drive passengers, with Uber’s support structure offering minimal responsibilities for vehicle upkeep.

For Hartlepool’s self-employed drivers, who may have invested significant amounts in their vehicles as part of their livelihoods, its said to be becoming increasingly difficult to compete with Uber’s low-cost operations. Drivers in Hartlepool face higher operational costs without seeing an equivalent return in terms of fare prices or job security.

Hartlepool Taxi Drivers fear work will simply "dry up"... As Uber Expands across the town...

Some Hackney drivers in Hartlepool fear the rise of Uber will be the death of the Yellow Cab industry in the town

The presence of Uber is not just a local issue in Hartlepool – it’s having a wider impact on Teesside as a whole. Whilst the service may be hailed for providing more flexible transport options, it's said to be creating a ripple effect across the whole region. Many drivers are reportedly leaving the traditional taxi industry in favor of the flexibility Uber offers, yet this shift is said to come at a significant cost.

Claims of a regulatory 'black spot' as council licensing regulations were originally intended for traditional Taxi Services...

Its claimed currently regulatory framework by local councils such as Hartlepool is 'insufficiant' to deal with the influx of out of town registered taxis.

Local councils are also struggling to keep up with Uber’s growing influence. Licensing and regulatory frameworks were said to have been originally designed for traditional taxi services and have not been fully adapted to accommodate the new dynamics introduced by app-based companies like Uber. This has created a regulatory 'black spot', leaving local councils unsure of how to enforce rules that ensure fairness for both traditional taxi drivers and new entrants like Uber.

Moreover, as local drivers face more competition and reduced earnings, the implications for the local economy are far-reaching. Fewer self-employed taxi drivers means fewer local people making money in Hartlepool for the local economy, Furthermore, it’s not just taxi firms that are said to be feeling the squeeze; local businesses that rely on transport services – from hospitals to hotels – are also seeing disruptions.

Traditional drivers will simply "throw in the towel"...

Whilst Uber may seem like a modern and convenient alternative for Hartlepool residents, it's undeniably shaken up the local taxi industry, creating challenges for established firms, self-employed drivers, and even the town's economy as a whole. The lack of local knowledge, the financial strain of maintaining private hire vehicles to the standards required by local councils, and the squeeze on profits from local taxi firms are all said to be raising serious questions about the future of transport in Hartlepool and Teesside.

It’s clear that some drivers are being left behind in the race for profits. For Hartlepool, it seems the meter could be about to be swithed off for the future of traditional taxi services in the town, as Ubers rise in Hartlepool leaves traditional Taxi Drivers with fewer passengers to pick up, & further financial losses.