The Essential Role of Taxis in the Gig Economy in England
The sector of workers providing gig economy services in England has emerged as a powerful force in the modern labor market, redefining the landscape of work and income generation. From freelance designers and app-based delivery drivers to remote workers and consultants, the gig economy provides flexibility that traditional employment rarely does. But for all the good it does, the gig economy depends on one critical — and sometimes neglected — service to run well. Enter taxis.
From ferrying workers to and from jobs to getting you the package you ordered at your doorstep on time to even offering a reliable alternative to using personal vehicles, the taxi industry is integral in sustaining this growing economy. But how exactly do taxis stack up within England’s gig economy, and what does the future hold for this cornerstone of transportation? Which is what we’re going to unpack.
Gig Economy Growth and Its Importance in England
This question is still high on the agenda as the gig economy has massively expanded in England over the last ten years, upturning industries and disrupting working conditions. According to the ONS (Office for National Statistics), the number of gig workers in this country stood at more than 4.4 million in 2022, and the growth has been particularly prevalent in urban centres, such as London, Manchester and Birmingham.
Flexibility, independence and the growth of app-based platforms such as Uber, Deliveroo and TaskRabbit have fuelled this trend. For workers, it means providing opportunities for supplemental income or full-time freelance careers. On-demand talent and services is everything for business.
But this explosive growth has caused logistical headaches, especially in transportation. Enter taxis — a form of transportation that, though traditional, is still at the heart of the gig economy.
The Role of Taxis in Supporting Gig Economy Operations
Taxis have always been a lifeline for workers in a slew of sectors, but in this gig economy they’ve taken on an even more vital role. Here’s how they fit into this dynamic system:
1. Reliable Transportation for Workers
A lot of gig economy workers — especially those without personal vehicles — rely on taxis or private hire fleets to get them between shifts, job sites, or clients. This is especially the case in regions where public transport does not accommodate erratic or unpredictable schedules. Taxis provide a reliable solution, allowing workers to take gigs outside their local neighbourhoods, and increase their earning potential.
2. Last-Mile Delivery and Logistics Support
The increased demand for such transport services, especially to fill in gaps in supply chains, has arisen after the different delivery services — from groceries and parcels to meals — which have risen. When delivery platforms face driver scarcity, taxis take over and can make urgent deliveries or fill in peak-hour demand. This flexibility allows platforms to run smoothly and customers to be satisfied.
3. Flexible and On-Demand Commuter Transport
For gig-economy commuters, time is money. Taxis offer convenient, hassle-free solutions to get workers where they need to go so they meet deadlines or job commitments on time without delay also. Gig workers who combine multiple tasks in one day often prefer taxis because they are door-to-door, something public transport cannot match.
Challenges Faced by Taxi Drivers in the Gig Economy
Taxi drivers themselves play a critical role in making the gig economy possible, yet face unique challenges in this space.
Competition from Rideshare Apps
Applications such as Uber and Bolt have forced the traditional taxi system to adapt by providing less expensive, more flexible services. With cheaper and on-demand rideshare apps doing most of the heavy-lifting today, taxi drivers are challenged to be competitive in the sector.
The Impact of COVID-19
The COVID-19 pandemic brutalized the transportation industry, as lockdowns and remote work diminished demand for ferrying around commuters. Taxi drivers saw dramatic drops in passengers, and the aftershocks from these transformations can still be seen. While some demand has come back, many drivers say they have gotten fewer fares than when they would work in pre-pandemic years.
Rising Costs of Operation
Increased fuel prices, car maintenance costs and licensing requirements have raised taxi operating charges, squeezing the profit margins of drivers already working in a cut-throat industry. With the pressure to maintain affordability this often results in many struggling to survive.
How Taxis Are Adapting to the Gig Economy
Amid these headwinds though, the taxi sector is demonstrating remarkable sustainability as companies and drivers alike are making accommodations to the changing cycle of the gig economy.
1. Technology Adoption
Ridesharing services are now competing with traditional taxis that are taking advantage of technological advances. Mobile apps and online booking services like Free Now and Gett enable taxis to compete with the convenience of app-based bookings while keeping their unique offering of reliability and safety.
2. Diversification of Services
Taxis pivoting to remain relevant in gig economy New revenue channels have emerged in delivery services, contracted logistics and corporate partnerships for employee commute programs. These expanded services serve as a means for taxi operators to establish themselves as comprehensive solutions for different business requirements.
3. Focus on Quality and Safety
The rideshare services available today are increasingly criticized, while standard taxis have redoubled their efforts to deliver a consistent service at a high standard of quality and safety. Taxi companies specialize in certain features like advanced driver vetting methods, superior vehicle inspections, and incredible customer service that gives them a competitive advantage.
Insights from Gig Workers on the Importance of Taxis
We talked to gig workers around the country who relied on taxis to make their work easier.
Emma, a freelance graphic designer from Manchester, says taxis are her go-to for client meetings in areas of the city not easily reached by public transport. “Sometimes the train schedule just doesn’t fit, and I cannot depend on buses to arrive on time to meetings. “Taking taxis guarantees I’m timely and professional.”
Deliveroo driver Shawn, from London, explained thow taxis came to his rescue when deliveries doubled. “I had double orders, and with rush-hour traffic, my bike wasn’t making the cut. It was a taxi at the end that got the deliveries on time. It was worth it.”
These stories illustrate the different ways that taxis give gig workers the ability to overcome logistics challenges and earn as much money as they can.
Future Predictions for Taxis in the Gig Economy
As the gig economy continues to grow at a tremendous rate, the taxi industry in England stands on the brink of further transformation.
Collaboration with Gig Platforms
We can expect to see even more collaboration between taxi services and gig platforms, especially in areas such as delivery and shared transport services. They could also partner with corporate customers to take care of employee commutes as hybrid working patterns increase.
Integration of Sustainability Initiatives
As the pressure grows to adopt sustainability, you can expect to see more eco-sensitive projects in the pipeline. Electric and hybrid taxi fleets could eventually become the norm, making them attractive to eco-conscious riders and cost-sensitive operators alike.
Enhanced Personalization
Taxis could be much more personalized in the future according to the schedules and needs of gig workers. Custom subscription plans, flexible payment options and gig-worker discounts could bring taxis on board as an irreplaceable ally.
Why Taxis Are Key to a Thriving Gig Economy
Taxis are inextricably linked to the gig economy. While the former brings flexibility and opportunity, it is the dependable transport, last-mile delivery solutions, and responsive approaches of taxis that make gig work soar.
For the cab industry, it’s an opportunity to leverage collaboration, innovation, and a customer-first approach to more fully usher the taxi industry into the gig economy. For gig workers and commuters, for both the convenience and the success, taxis are still a foundation.
Are you a gig worker, taxi driver or commuter with your own story to tell? Follow along in the comments section!
[Book Now]
