Home » News » New cab company hits city streets

New cab company hits city streets

Since immigrating to Canada 20 years ago, Hasan Savehilaghi has worked as a teacher, translator and cab driver.

Now he can add president to that list.

Last week, Savehilaghi launched London Taxi, a new yellow cab company trying to compete in London’s competitive taxi market — one historically dominated by just a few companies.

His business strategy involves more than fares and service. After working as president of the London Taxi Association for 10 years, and as a cab driver on the side, Savehilaghi decided the traditional business model was flawed.

“Currently the relation between taxi companies in the city and those who provide the services is nothing,” he said. “So the whole cost of the taxi business is on the shoulders of owners and operators.”

Savehilaghi noted cab drivers take on the risk, pay for gas, insurance and vehicles, while the cab company takes care of dispatching.

“I went through many debates, many meetings and many disputes that cab drivers were involved in,” he said. “The only way to go was to introduce a model for the cab industry.”

Under a new co-op system, cab drivers will be more like shareholders and get a piece of year-end profits. Drivers can also elect representatives, who work with management and have a presence in decision-making.

One of the main competitors in the London cab market is U-Need-A-Cab.

General manager John Pepers, who has worked in the cab industry for 35 years, noted Savehilaghi’s concerns regarding the existing deal with drivers are normal.

“Owners pay for their own vehicles [and] their own insurance. That’s commonplace. That’s done all over the planet,” he said.

Over the years, Pepers said seven or eight new cab companies have come and gone in the Forest City. While it’s too soon to decide London Taxi’s fate, he said the demise of one cab company usually means more workers for another.

“It happens from time to time in this industry and it’s not exclusive to this city,” he said of the new company. “Sometimes they don’t want to do that anymore and come back to a bigger fleet.”

Savehilaghi’s model also doesn’t use flat rates, which are often negotiated between the cab company and other businesses. These private rates save consumers money, but means lost revenue for drivers, he said.

While fare rates are controlled by the City, flat rates are considered private deals.

Aboutown, the other main cab competitor in the city, could not be reached for comment.

Andrea Schwebel, a second-year student in media, information and technoculture, said she mainly sees blue and orange cabs around the city, but noted the main problem is finding a cab on busy nights.

“If there was more competition, I guess coming and going wouldn’t be so hectic.”

Follow the Gazette on Facebook and Twitter.