Taxi drivers and operators riding the wave of optimism amidst economic challenges, SumUp survey finds

A recent survey by SumUp, which interviewed 750 small UK business owners and decision makers, has revealed a cautiously optimistic outlook among independent taxi firms.

Despite the economic turbulence of 2023, including a technical recession and rising inflation, these businesses are looking forward to the future with confidence.

The survey highlighted that 40% of taxi firm owners feel confident about their business prospects, expecting steady performance and overcoming challenges in the coming year. Furthermore, 30% are very confident, anticipating significant growth within the next 12 months. A smaller segment, 10%, acknowledge facing challenges but remain generally positive, while 20% are uncertain about the future direction of their businesses. Notably, none expressed worry about their business outlook.

Despite the optimistic sentiment, there are significant hurdles to overcome. Half of the respondents cited the economy and inflation as key concerns, with rising petrol prices being a particular issue since November 2023. Additionally, 20% are feeling the pressure from competitors offering cheaper alternatives, while 30% struggle with customer retention. Other challenges include increasing bills, narrower profit margins, and the demands of digital transformation.

In response to these challenges, taxi firms are implementing various strategies. Over 40% have developed cost-saving plans with service providers, and 22% are cutting supply chain and professional service costs. Some firms are adjusting their pricing strategies: 22% have lowered prices to stay competitive, while another 22% have raised them to safeguard profits. Additionally, 11% are investing in digital technologies to support growth, while others are diversifying their service offerings or reducing staff to manage costs.

Corin Camenisch, Product Marketing Lead at SumUp, said: “As champions for small merchants, we conducted this survey to discover the confidence levels of small business owners and decision makers in the UK to better understand the challenges they face, gauge their optimism about their future, and identify areas where support for SMEs might be needed. 

“Overall, confidence levels of small business owners and decision makers across the UK are high. This positive outlook suggests that small merchants are prepared to navigate potential uncertainties and continue to thrive. 

“We have provided tips off the back of our findings for those just starting out in business, or who are looking to deal with unexpected market fluctuations on our full campaign page.”