Mini cab claims of "35% cheaper than taxis" are false

Radio Taxis Group Chairman and CEO maintains, there is solid evidence that claims by leading Mini Cab companies to be "at least 35% cheaper on average than taxis" are completely false and designed to mislead the public.

Riesel said evidence has been exposed that firms involved in these spurious claims were typically found to be quoting "low rates per mile charges" but were "systematically overstating mileages and extras." 

These car companies whole charging systems are based on what they can get away with and may become the object of an investigation by UK or EU competition laws.  Failure to comply with UK or EU competition law can have very serious consequences.

Firms involved in anti-competitive behaviour may find their agreements to be unenforceable and risk being fined up to 10% of group global turnover for particularly damaging behaviour as well as exposing themselves to possible damages actions from customers. Furthermore, individuals could also find themselves facing director disqualification orders or even criminal sanctions for serious breaches of competition law (see OUT-LAW's guide to Anti-competitive behaviour under the Enterprise Act).

Riesel went on to say that most Mini Cab companies, even the biggest of them offer inferior service and can't compete with the licensed taxi industry's professionalism. The company owners regularly bemoan the fact that their mini cab drivers "are clueless."

Mini Cab  companies by and large use drivers who don't know where they are going, time and again can't find destinations and these "amateurish drivers" frequently struggle to find the pick up address because, basically, they are lost in London.

Riesel concluded by saying

"The majority of these companies feel that the only way they can sell their services is to give the impression that they offer a much cheaper service, when by and large they do not.  It is a sharp practice endemic in the Mini Cab business"

 

 

Posted on 03/05/2010 by Geoffrey Riesel