A Better Model. A Better Service.

My last few blogs have discussed how the private hire industry works and how the drivers within it are engaged. DrivenByQ has a mix of employees who drive company owned vehicles and self-employed sub-contractors who have their own vehicles. The full-timers are mostly exclusive to DrivenByQ. The part-time drivers however might sub-contract to multiple companies and will also have some of their own clients who use their service.

At every stage of growth, DrivenByQ has depended on sub-contractors to help at times of peak demand. At the executive level however there is only a small pool of sub-contractors in our local area. Very few people can offer the same level of quality as ourselves. Rivals will even resort to using a taxi company when they are busy. This drastically reduces the quality of the vehicle used and means no plate exemption too.

At DrivenByQ, we believe that if a customer expects an executive car service, they should receive an executive car service. To ensure this happens, we use our sub-contractor network from across the region and upgrade the service from executive to VIP if needed. This often costs DrivenByQ more than we charge to a customer. On the flip side, it not only ensures quality is maintained but it gives passengers a pleasant surprise.

Some of the VIP vehicles will be the latest (long-wheelbase) Mercedes S Class. These cost over £70,000 when new and represent the pinnacle of a large, luxury car equipped to the highest standards. Features of these cars include double glazed windows, electric sun blinds, massaging seats, adaptive lumbar support, digital TV and ambient lighting. The L version (for long) even adds an extra six inches over the standard car. This gives generous legroom and the rear seats have an additional electric recline function.

It may seem overkill to send such high-end vehicles for DrivenByQ customers but it ensures the ongoing relationship with corporate customers is maintained. It also builds the relationships required for us to transition from our local market to a regional one. With over one-hundred airport transfers a week to and from Manchester International Airport, it seems only natural to make Manchester Airport the next focus.

A New Model. A New Chauffeur.

In the last year, DrivenByQ has been through some fairly big technical changes which have mostly occurred in the background. If you were to go back and read through my Chauffeur Blog you would see that acquiring a new account customer lead to a domino-effect. Simply increasing the turnover past a certain point meant changing our VAT arrangement. This lead to the purchase of new company owned Mercedes vehicles and that in turn lead to the hiring of our first ‘employed’ driver.

Not many people know it but the private hire industry works quite differently to most business models. The majority of the time, the cars and drivers are not owned or employed by the company. Instead, they work on a self-employed, sub-contract basis. Historically, DrivenByQ has been the same. Using self-employed drivers who own their own vehicles. The advantage of this is that it keeps costs fixed and it provides a flexible workforce. Additionally (and it may be brutal but) anyone underperforming is quickly replaced.

Minicab offices use the same model and always have done with drivers paying a rental fee (or settle) for their radio equipment. At DrivenByQ we use a commission rate which is proportional to what a driver earns. The difference however between a minicab (or taxi) office and the executive work which DrivenByQ carries out is that a minicab driver will work a shift pattern of up to twelve hours and wait to see what they earn - which is sometimes very little. An executive driver will know in advance what they are working and will only work when required.

The real separation between the two models is that a minicab (taxi) office will have drivers ready to go ‘on demand’ whereas the executive company will struggle to cover jobs at short notice. This was the industry standard until a few years ago when digital disruptors (like Uber and Deliveroo) arrived in the market. They attracted a new kind of person to the industry who demanded conditions more akin to a traditional type job. Comparing earnings to hourly rates of pay resulted in legal claims being made and over time, the government’s response was to publish the Taylor Review.

The outcome of this report was to recommend more people be employed on an hourly rate where they could also receive worker’s rights. I am proud of the fact that DrivenByQ has always paid some of the best rates to self-employed drivers and they have in turn been able to invest in nice vehicles. This summer however, with the purchase of company owned vehicles and a change in the way we reclaim VAT, we spent time constructing a bespoke ‘contract of employment’. We then took on our first ‘employed’ driver who has sick pay, a set hourly rate and a holiday entitlement.

Driven By Quality

Last year I wrote a blog about airport transfers and how some people compete on price for the cheapest part of the market. It is relevant again now because we have been gaining customers who have never travelled with us before. Primarily they are business passengers who book their own travel and like to pay by card.

One company close to our area had gained business because of their unbelievably low prices. They even emailed our corporate customers and offered discounted accounts! When they first launched we didn't focus on them because there was no clash with our niche, although we heard lots of concerns from other operators.

In hindsight a really cheap operator is a blessing in disguise. They seriously weaken the competitors at the bottom of the market and jeopardized their own future at the same time. Their prices are so low, nobody can compete with them and so too nobody will work with them. Eventually they struggle to meet demand and let people down.

As the downturn ends, account customers are travelling more, independent business passengers now prefer best value (not price) and holiday makers want luxury. At DrivenByQwe have always provided quality and reassurance! Gladly it seems there is a real appreciation and demand for it again.