Liam Griffin interview: Director of taxi firm Addison Lee on the battle against the mobile phone cab apps

The apps jostle for space, fighting to be tapped in a global war for fares that is at its fiercest on the streets of London.

 

Liam Griffin has only just got the new iPhone and hasn’t had time to reorganise his apps.

His “taxi” folder has disappeared, littering his home screen with icons. “Dial-a-Cab, KabX, LeCab, JumpIn.” He reels off names. “Kabbee, Drivr, GroundLink… I did have Hailo, where’s it gone…? Story of their life – they’ve disappeared from my phone.”

The apps jostle for space, fighting to be tapped in a global war for fares that is at its fiercest on the streets of London. There is the Addison Lee icon, too, but one app shouts loudest. As Griffin steers his old man’s firm, founded with one car in 1975, to New York (and, he hopes, a billion-dollar sale), he could be excused for not wanting even to utter its name.

“Uber?” he asks. “I’ve probably used it three or four times. I think you have to see what the competition is up to.” What did he think? “Erm, it’s a perfectly good minicab service. It’s not by chance that they’re being successful. But I don’t think it’s got the quality we have. Would any of their drivers qualify to come and work for Addison Lee? Probably not.”

Fighting talk, but it’s hard not to think that Griffin must lose sleep up in his Hertfordshire mansion, from which he drives to Add Lee HQ near Euston in a Mercedes G-Wagen (his personal fleet also includes a Ferrari). Uber has rocked an already cut-throat industry, mostly riling  black-cab drivers, who staged their latest London sit-in last week. Yet they and Griffin appear powerless to slow the slick, loaded, Silicon Valley giant, which now operates in 200 cities.

Griffin, 41, lives with his wife, Clare, and their three young sons. They met at Loughborough University, where he studied economics, played football and raced cars. On Tuesday, he sits in the back of one of his 4,500 Ford Galaxies and fires up his own app, which he launched in 2009 (the company was also the first to send texts to announce the arrival of cars). “It does amuse me that we don’t get mentioned in the same breath as these dot-com disruptors,” he says. “The truth is, we’ve been doing exactly the same for far longer and far better.”

Today’s journey takes us from head office to West Hampstead, where John Griffin, who stepped down as chairman this year, opened a north London satellite in the mid 1980s (it’s now an estate agent). Liam spent school holidays here, dropping minicab cards through letterboxes. In 1996, he joined the firm full-time, when the company still had only 200 cars, and worked his way up, turning Addison Lee into London’s biggest private operator.

Uber appears to pose such a threat because, controversial tech aside (black-cab drivers insist that Uber relies on metering, which only they are allowed to do), it’s cheap. If I wanted to go home now, Add Lee would charge £22.30, less than a black cab but more than Uber’s “£12-16”. Yet Griffin claims that the upstart startup has accelerated his own growth. How?

“They have highlighted on-demand taxi services as a travel option that wasn’t at the forefront of everyone’s mind before,” he says. “Now it is and more people are using us.” Revenues (almost £200m a year) have continued to grow throughout the past 12 months, he adds.

Last year, the Carlyle Group, an American private equity firm, bought most of Addison Lee for a reported £300m. It is now ready to cash in on the growth. Rumours circle of an imminent £800m sale, which would require global expansion. Next up: New York, where Addison Lee today launches a franchised service for its biggest clients. If the deal works, which it must, Griffin, already a very rich man, will deploy his cars there and beyond.

In the company’s control room, a screen shows a map of London obscured by dots, a galaxy of Galaxies. Another displays a spreadsheet of jobs, including pick-up addresses. Someone healthy and ethical has ordered a Prius from a Virgin Active in Hendon, but the big jobs today are the corporate accounts – Saatchi & Saatchi, GlaxoSmithKline, Bain Capital – that pay more, and whom Uber has yet to woo. But Uber is wooing and winning everyday fares like me. It is in this market, I suggest, that Addison Lee has an image as well as a price problem. Two brouhahas that engulfed it in 2012 didn’t help. First, John Griffin skirted the law when telling his drivers to invade bus lanes. Then he appeared to round on cyclists, many of whom already hate the company’s driving style, eventually triggering a “die-in” outside head office.

The company also has a rather macho, functional image – the IBM to Uber’s Apple, perhaps (BA to Uber’s Ryanair, Griffin suggests). It doesn’t help that it employs just 16 women among 4,500 drivers (well under half a per cent compared with the industry’s 6 per cent. Griffin says he has tried hard to improve this). In May, in a sign of how dirty taxi wars have become, it was accused of deploying aggressive tactics by cancelling ITN’s account in the middle of local elections night, one of the news group’s busiest days. Why? Because it was about to jump into the back seat with Green Tomato, a rival taxi firm. “There’s history there,” Griffin says. “Three times, ITN had left us in the proverbial. On each occasion, they’ve gone to somebody cheaper, who inevitably go skint, and who we inevitably buy. When we got wind that they had agreed to go to Green Tomato, we pulled the plug the day before. It was purely coincidence that it was election night.”

Griffin, who is mostly urbane and restrained in a way that his father was not, says that he advised against the bus-lane stunt, meanwhile, although he is still pushing quietly for access. His drivers now receive cycle training, he adds, agreeing that it is in his interest to play nice. “Barclays, one of our biggest customers, sponsors Boris Bikes, so coming out and criticising cyclists wasn’t wise,” he says. Did it get him into trouble? “I certainly got a phone call.”

He is now poised to launch a new ad campaign as he tries to keep pace in a market that has unexpectedly become cool. For now, black cabs remain his biggest rival. When he hails one (“There will always be times that people want to just stick their hand up,” he says), he asks them to drop him off round the corner. “I might not get back here to the office if I gave them the address,” he says.

Perhaps unsurprisingly, he supports their war on Uber. “For the first time, we’ve got a common enemy,” he says, before darting up to his office, furiously tapping away at his phone.

Maaxi app aims to help black cabs counter rise of Uber

Maaxi

Maaxi uses GPS location tech to direct taxis to passengers using the app

A new app is recruiting London’s black cab taxi drivers with the promise that it can help them compete against Uber, Hailo and other car pick-up services.

Maaxi is designed to match up to five strangers travelling in the same direction, so that they can share a ride and split the bill.

Alternatively, users can opt to ride solo when they make their booking.

The start-up already has the support of the Licensed Taxi Drivers Association.

Maaxi
Prices are determined by how many people the passenger shares with, affecting their journey time

Its backing is in large part down to the fact that Maaxi promotes itself as a black cab-only facility, unlike rival apps that also offer private hire cars.

As well as attracting extra business, the start-up says drivers will earn more money per ride if they carry more passengers than they would do via a traditional pick-up.

Under normal circumstances, black cabs do not charge extra for carrying two, three, four or five people rather than just one, but this is not the case with Maaxi.

“The taxi driver charges each person less than the meter fare but overall gets more, when aggregating all the partial fares – a true win-win,” explained Gabi Campos, the firm’s chief executive.

“The fares are distributed according to the distance and time the person spends in the taxi, so that if five people share a journey they split the fare for that portion in five, and if in a subsequent shared journey only four are sitting in the taxi, the fare is shared by four.

“Maaxi takes the hassle out of the hands of the driver and the passenger, and uses technology for everything to be automatically calculated.”

One tech writer questioned the business model.

“You have to be really keen to save money to want to stop to pick up strangers,” commented Chris Hall, editor of Pocket-lint.com.

“I think the people already using Uber will stick with it because the prices are very affordable, and so far the service is acting smoothly.”

But another expert welcomed the company’s entry into the market.

Uber black cab
Uber has signed up some black cabs, but the facility is often unavailable and most passengers instead use its private car hire options

“Competition is always a good thing because it increases quality,” said Dr Stefania Zerbinati from Cass Business school.

“And because the company’s registered in the UK, if it succeeds it will pay money back to the government.

“Uber, instead, is registered outside.”

Uber says that it complies with local tax laws, but the UK version of its app is registered to an entity based in Amsterdam, meaning the company’s cut of each ride is taxed in the Netherlands.

Traffic opt-outMaaxi is funded by the financier Nathaniel Rothschild. It uses software developed in London, which is run off Amazon’s Web Services cloud computing platform, to match customers and cars.

Nathaniel Rothschild
An advert for Maaxi features its financial backer Nathaniel Rothschild

The system integrates with Transport for London and National Rail’s timetables to allow travellers to co-ordinate the “last mile” of their journeys.

In addition, it can arrange passenger pick-ups to be “daisy-chained”, so that drivers can continue picking up and dropping passengers as they go, rather than transporting one group at a time.

The firm makes money by taking a cut of the fee for shared rides, but not those of passengers travelling alone.

Users are given a quoted fee before entering the cab, which is based on earlier taxi journeys along a similar route.

“If Maaxi identifies sudden severe traffic which can impact a journey, it alerts passengers and allows them to choose not to continue the journey,” said Mr Campos.

“However even if passengers choose to stay in severe traffic, the costs are much smaller when shared between several users.”

He said that approximately 1,500 cabs had already signed up to be part of the service ahead of its launch in a few weeks time.

Uber began its own shared-trips service, UberPool, last month. But the facility is only available in San Francisco.

The Google-backed company has been the target of black cabbies’ ire in recent months.

They claim that allowing a smartphone to work out the cost of a ride is similar to using a taxi meter, which only black taxis are allowed to do in the UK. Minicabs, by contrast, quote a fixed fee ahead of the journey.

An online advert for Maaxi notably features a passenger wearing a t-shirt that features the Google logo alongside a swear word.

There has also been tension between the Licensed Taxi Drivers Association and Hailo, after the app added private hire vehicles.

The head of the LTDA, Steve McNamara, told the BBC he had been promised Maaxi would not do the same.

London Hailo cab
Cabbies are putting up their own posters expressing their feelings

“This was the major concern that the taxi trade had, following what can only be described as the sell-out by Hailo, who went to the dark side,” said Mr McNamara. “Nat Rothschild has personally assured the taxi trade that this is a black cab app and we’re very excited by it. We actually think it could be a real game changer.”

London: Testing Ground For Car Service Apps

A second wave of protests by black cabs earlier this month were the latest skirmish in an ongoing conflict over public car fleet transport. Drivers of traditional black cabs, under their umbrella organisation, the London Taxi Drivers’ Assocation (LTDA), staged a traffic snarling protest on 24 September in central London.

The drivers were upset over what they saw as an ongoing lack of regulation concerning mini-cabs and mobile apps, illegal touting and electronic rickshaws – particularly Uber, the US app that enables drivers to pick up fares signalled through smart-phones. According to UK government statistics, London alone controls 31% (around 71,600) of the 231,000 licensed vehicles in the UK. By one estimate this market is worth over £3 billion – demonstrating its global importance in the ongoing sector fracas.

It is also a unique urban market. Its odd formation, complicated local road systems and general age and sprawl have led to a significantly fragmented private-hire (minicab) market. At the same time its status as a centre of innovation and technology has led to it becoming an important testing- (and battle- as the protest demonstrates) ground for the latest innovations in the taxi and private-hire sphere.

Close-up of ‘for hire’ signage (on roof and in...

Close-up of ‘for hire’ signage (on roof and in nearside front window) on a London hackney carriage, photographed at Marylebone station.

Maaxi taxi app gets backing from Ken Livingstone as he hails Nathaniel Rothschild’s new venture

Ken Livingstone

Ken Livingstone called Maaxi revolutionary

Former London mayor Ken Livingstone has thrown his backing behind financier Nathaniel Rothschild’s new taxi sharing app Maaxi, believed to be likely to launch in the next few weeks.

In an open letter to taxi trade organisations, Livingstone said: “I have been using my experience and knowledge of London and its transport system to help launch a new ‘People’s App’ called Maaxi which enables Londoners to share taxis.”

Livingstone also slammed controversial rival travel app Uber, calling on Londoners to back Maaxi to “stop Uber driving the black cab trade into extinction!”.

The Maaxi taxi app, which aims to reduce the cost of black cabs for passengers by arranging taxi sharing to destinations, is being driven forward by Rothschild and Argentine tech guru Gabriel Campos, former chief exec of gaming website Pokerstars.

Earlier this week Rothschild held a meeting with taxi drivers at Millwall FC to promote his new app to gathered cabbies.

Maaxi has also already received strong early support from taxi trade organisations such as the Licensed Taxi Drivers Association (LTDA).

Steve McNamara, LTDA general secretary told City A.M. yesterday: “Maaxi is a great and unique concept whereby drivers can earn more and passengers can pay less. This really is a win-win situation, great for passengers and taxi drivers.”

Meanwhile a spokesperson for current London Mayor Boris Johnson said the Mayor is keen to examine any “new technology that helps cabbies and customers”.

190,000 mobile phones left in London Taxis every year

More than 190,000 mobile phones are lost in the back of London taxis each year, in what a security firm has called a technology "black hole". PA photo.
More than 190,000 mobile phones are lost in the back of London taxis each year, in what a security firm has called a technology “black hole”. PA photo.

More than 190,000 mobile phones are lost in the back of London taxis each year, in what a security firm has called a technology “black hole”.

Internet security firm ESET surveyed 300 London black cab drivers and found that on average a driver finds around eight forgotten mobile phones in their taxi each year, with around half of them not being secured by any type of pin code or other means, leaving private data vulnerable.

Mark James, security specialist at ESET, said:

“Today we use our mobiles for a multitude of tasks, whether it’s our online banking or connecting to corporate email systems, and we do not want our devices to fall into the wrong hands.

“Our study shows that despite the huge publicity cybercrime receives in the media today, consumers still do not see themselves as a real target. This is naive and wrong. Cybercriminals are well aware of the fact that our mobiles contain connections to corporate networks and sensitive information and they will take advantage of this.

“Consumers should as an absolute minimum use a password to protect their device in case it is ever lost, however a good security posture would include encryption and a remote wipe facility.”

According to those taxi drivers surveyed, 68% said they would not try to have a snoop on a phone they found in their car.

“While our study has proven just how honest taxi drivers are, sadly not everyone who finds a phone will take the same approach,” said Mr James.

“I imagine the majority of people who find a phone will actually have a look around and see if there is anything of any interest or value to be found. What people need to start asking themselves is – could any of the data held on my mobile compromise me either personally or professionally if it fell into the wrong hands? If the answer is yes, which I expect it will be, then security on your mobile device must be a priority, not an afterthought.”

However, it was not just mobile phones that have been discovered in the back of cabs, other items that have turned up in the last year included £100,000 in stocks and bonds, an inflatable banana, a dog, 400 packets of jelly and a Nato chief’s briefcase.