Why are bus & taxi fares still same given oil prices ?

[truman 10]

lol, how much fuel do you think they have stored? BOOM

 

They don't store it..they agree (and sign a contract for) a price for the fuel maybe 6-12 months in advance and have to buy it at that price... (assuming they do buy in advance)...probably a good idea really to mitigate further price hikes..as far as I know no-one expected the recent price drop..

[beansforyou 10]

Aren't both taxi and bus companies profit making businesses?

 

Why would they voluntarily offer to make less profit?

[No User Name 10]

lol, how much fuel do you think they have stored? BOOM

 

Read post #4. Boom!!!!!!!

[Blackbeard 10]

lol, how much fuel do you think they have stored? BOOM

 

Try learning how business works when it comes to planning for the future.

http://en.m.wikipedia.org/wiki/Forward_contract

Some you win some you lose.

[Andy C 86]

In both the case of public transport and taxi operators, fuel isn't the only cost.

 

There is also the cost of staff wages, cleaning, parts, licences, insurance, MOT, garaging/depot, marketing/information and more.

[MobileB 10]

Didn't you know? When the price of fuel is going up, the bus companies have to increase the fairs because of the rising costs. When it goes down, fuel only accounts for 10% of a bus company operating cost.

[nikki-red 308]

Threads merged. Please use the search/prompt facility before starting new threads.

 

Thank you.

[Lotusflower 10]

The cynical side of my personality inclines me towards another take on this question. Some people work behind a bar as stewards. Some of them are greedy!

[Andy C 86]

Black cab taxi fares are set by the council.

 

Some bus fares in Sheffield are still cheaper than they were 6 years ago!

 

Hardly greed.

[stormvixen 10]

True, but 6 years ago, we had a better service. Still not as good as 10+ years ago, but hey ho...

 

I'd not mind so much that fares aren't going down, as I understand the business model they have to use, but for the fact that this is sadly, the case. Lets just hope they put the savings aside to bulk buy for the next time A LOT and then maybe be able to look at passing these savings on.

[actionman 12]

Amazing petrol & diesel prices drop yet no shouts from taxi and bus companies about dropping prices about as honest as extra increases at christmas from taxis because drivers are working the holiday period 90% who don't even celebrate christmas blatant profiteering remember this next time they are screaming about fuel prices also black cabs are more expensive in sheffield than London as us yorkshire folks say ROBBING GETS :rant:

 

Private hire Taxi fares have stayed the same for nearly the last 5 yrs.!!!! Div.

[denlin 12]

True, but 6 years ago, we had a better service. Still not as good as 10+ years ago, but hey ho...

 

I'd not mind so much that fares aren't going down, as I understand the business model they have to use, but for the fact that this is sadly, the case. Lets just hope they put the savings aside to bulk buy for the next time A LOT and then maybe be able to look at passing these savings on.

 

We didn't have a better bus service where I live than 10 years ago. We only used to get about 4 an hour now they are roughly every 6 minutes at peak times and a lot more frequent on a Sunday