London Taxi's Spanish Debut: A Pricey Proposition

The Arrival of the Iconic London Taxi in Spain

In recent months, news has circulated through various media outlets about the highly anticipated arrival of the London Taxi in Spain, under the designation LEVC. A dealership has been established in Madrid, offering both the legendary TX, the quintessential London taxi, and a new van model, the VN5, both featuring the same powertrain. As a taxi driver myself, I was keen to explore this development. I contacted the official website and soon received a call from a sales representative from London Taxi Barcelona, based at the Volvo dealership in Cornellà de Llobregat. Following discussions, a demonstration unit was arranged for me to test drive and evaluate from a professional taxi driver's perspective. The vehicle was in my possession from Monday, September 13th, to Friday, September 17th, during which time I conducted various tests focusing on consumption and range to form my own conclusions beyond the manufacturer's official data.

A Flawed Commercial Strategy?

Before delving into the vehicle's performance, it's crucial to address the commercial strategy employed by LEVC. In my opinion, this strategy is a significant factor determining whether this vehicle will be a resounding success or a dismal failure. Currently, it appears to be leaning more towards the latter, and I believe it's vital to highlight this as a lack of sales spells no future, regardless of how excellent the vehicle might be. I aim to illustrate the conceptual disconnect between the seller and the buyer from a taxi driver's viewpoint through a few examples.

Imagine a manufacturer with an impeccable reputation for building high-quality clothing designed for extremely cold climates, based in Norway. They are renowned for creating jackets so warm that even Eskimos would feel the heat at -30°C. One day, they decide to expand their business internationally and choose San Juan, Puerto Rico, as their prime location for selling their premium merchandise. They open a large store, stocking it with their specialized items, but after three years, they haven't sold a single pair of socks. What was the error? Selling a product in a location without considering the local climate, a climate utterly incompatible with the intended use of their clothing.

This may seem obvious, but a similar situation appears to be unfolding with London Taxi and the Spanish taxi sector. While the vehicle itself is almost perfectly engineered for its intended service, the economic realities of operating a taxi in Spain make such a substantial investment difficult to justify. For the few who can afford such a significant outlay, personal economic circumstances will likely lead them to opt for a Tesla or a Mercedes. In such cases, the primary consideration won't be the vehicle's accessibility features but rather the personal comfort and luxury of a high-end car, especially given the many hours a taxi driver spends inside their vehicle daily.

Public Services vs. Private Enterprise

Let's consider four essential public service vehicles that operate 24/7, 365 days a year:

1. Fire Services: These include fire engines used for extinguishing fires, managing floods, rescue operations, and extricating individuals from accidents, as well as extendable ladder trucks, seaplanes, helicopters, and rapid intervention 4x4 units.
2. Medical Services: This category encompasses ambulances, rapid intervention vehicles, mobile intensive care units (ICUs), and even helicopter-based ICUs.
3. Police Vehicles: This includes municipal patrol cars and motorcycles, regional police vehicles, national police units, accident investigation teams, prisoner transport vehicles, and air support units.

All the aforementioned vehicles are commercially exclusive. They are designed exclusively for their specific functions, resulting in a very limited sales volume. Consequently, the companies that design, manufacture, and sell these vehicles must achieve profitability by selling a small number of units, which drives up the price per unit. However, in all these cases, the cost of these vehicles is borne by the public administration, making the individual price less of a concern.

The Taxi Dilemma: Cost vs. Functionality

Now, let's turn our attention to the taxi industry. Does a vehicle exist that is specifically designed for taxi services, considering all potential mobility scenarios? Yes, and the London Taxi can be considered almost the sole vehicle engineered for this precise purpose. Are there alternatives? Indeed, a standard, everyday car can be fitted with a taximeter and the necessary signage. Because these vehicles enjoy high sales volumes, manufacturers can afford to operate with much lower profit margins per unit, compensating for the reduced margin with a larger number of sales.

Who pays for the vehicle? This is, in my view, the core incompatibility of the London Taxi with the target customer, hindering its sales potential in Spain. The price of this vehicle is geared towards sales to public administrations as a guarantee of quality in urban transport services for up to seven passengers, including the driver. For instance, the cost of urban buses is not borne by the individual driver; however, in the case of taxis, it is.

The LEVC TX starts at a price of €74,652 for the base model, rising to €76,907 for the top-tier version. These prices do not include optional extras such as the 22 kW three-phase charger. These prices are not significantly reduced in Spain by the Plan MOVES III incentives, as they exceed the pre-tax limit of €45,000 set by the administration. This leaves potential buyers reliant on local council initiatives, such as the €8,000 subsidy announced by the Madrid City Council.

Potential Solutions and the Taxi Driver's Reality

The taxi service in Spain is an administrative authorisation, often mistakenly referred to as "public transport," yet it receives no public funding. One could argue that each municipal license is, in essence, the privatisation of a taxi service, an outsourcing of a service that must sustain itself through the profits generated by its own activity. The solutions available are limited. Many taxi drivers agree that the LEVC is a perfectly conceived vehicle for taxi work, but upon learning the price, their immediate reaction is that if they had that amount of money to spend on a car, it wouldn't be this one. The only viable solution, in my opinion, is for public administrations, whether local, regional, or national, to subsidise this vehicle to make it economically comparable to existing alternatives for transporting wheelchair users.

In other words, for a price range of around €40,000. Beyond €40,000-€45,000, taxi drivers tend to seek a level of luxury that the LEVC does not offer. What the LEVC primarily provides is unparalleled accessibility. When making a significant investment, taxi drivers prioritise luxury and personal comfort, which also enhances passenger comfort, often at the expense of prioritising the accessibility features that the LEVC excels at.

Another critical factor to consider is the proliferation of ride-sharing applications, which create unfair competition for traditional taxis, particularly with the encroachment of VTC (Vehicle for Hire and Reward) services. These services, which are not taxis but operate similarly, have significantly reduced the economic performance of the taxi industry. Consequently, this diminished profitability limits the amount of capital taxi drivers can allocate towards investing in a new vehicle for their business.

The Fear Factor: Reliability and Spare Parts

Taxi drivers typically opt for vehicles with high sales volumes, ensuring robust and readily available spare parts logistics. Imagine acquiring a vehicle with limited sales, only to suffer a minor accident. If the necessary spare parts must be shipped from another country and take weeks to arrive, it poses a significant problem. This is compounded by the potential lack of experience a mechanic might have with an unfamiliar vehicle, relying solely on online manuals from the manufacturer with no practical experience in troubleshooting. A taxi driver cannot afford a 'Plan B.' If the vehicle breaks down, income ceases for the duration of the repairs. Something as seemingly minor as a cracked window on an atypical vehicle could result in weeks without work or income.

LEVC LX: A Detailed Examination

The most striking aspect of the LEVC LX is its distinctly English design, which appears somewhat unusual outside the United Kingdom. One could draw a parallel to the European reception of the original Volkswagen Beetle and its modern iteration. This vehicle, the London Taxi, retains design elements and heritage from vehicles like the Austin Seven. To achieve sales outside its home market, LEVC has undertaken a substantial investment, completely redesigning the car. This involved not only moving the steering wheel from the right to the left but also reconfiguring the metallic structure housing the battery, the battery's shape itself, the dashboard, the partition, the seats behind the partition, and the access ramp. A significant investment was made to re-engineer the entire vehicle for its sale outside the UK.

Internally, it resembles a small bus. The layout, grab handles, flooring, and plastics are all designed for impermeability and ease of cleaning with water. Crucially, the materials are chosen to avoid absorbing odours in the event of an accident, such as passenger sickness. Its standout feature is its design prioritising ACCESSIBILITY for individuals with all manner of mobility issues. This includes people who cannot flex their knees, elderly individuals who struggle to support their weight on one leg with a bent knee and find it difficult to manoeuvre into a standard car, and for whom the LEVC offers a movable seat that extends outside the vehicle for easier boarding.

Furthermore, it addresses the significant challenge faced by people who rely on wheelchairs for personal mobility, a service that is often unavailable. The LEVC LX is a robust vehicle, weighing 2,300 kg, exuding a sense of solidity in every aspect. The doors are heavy, contributing to a very quiet ride with minimal aerodynamic noise. It features independent climate control for the driver and the rear passenger area, with a touch-screen control for passengers to adjust temperature and fan speed. Additionally, it offers USB charging ports, a 220V power outlet for passengers, and an intercom system that can be activated by both the driver and passengers for communication. The vehicle also includes a safety partition, excellent LED lighting throughout, including the floor, sides, and ceiling.

Mechanically, it is an electric vehicle with a range extender. This means it operates as an electric vehicle, powered by a small petrol engine whose sole purpose is to generate electricity. There is no mechanical transmission between the front-mounted petrol engine and the rear-wheel drive. It is equipped with an 11 kW onboard charger, with a 22 kW option, and a 50 kW CCS Combo charging port.

Initial Verdict on the LEVC LX

The LEVC LX is undeniably a vehicle designed specifically for taxi services. Like other specialised public service vehicles, its exclusivity for a particular activity dictates lower sales volumes. However, unlike those other services, the taxi industry in Spain has viable alternatives, allowing standard passenger cars to be adapted for taxi use. The decision-makers weigh the economic balance between the required investment and the expected economic return over the vehicle's lifespan. Passenger accessibility, while important, often takes a secondary role in these calculations. A higher investment typically correlates with a greater expectation of comfort.

Public administrations have budget allocations for rescuing banks, highways, and oil platforms. With a modicum of political will from the government – perhaps an idealistic notion – to improve the quality of public transport, particularly for individuals with reduced mobility, this vehicle could be made economically accessible to self-employed taxi drivers. As a taxi driver, I currently see the possibility of this vehicle becoming as commonplace as a Toyota Prius+ taxi in the future as quite distant. Future articles will explore the charging process, including the time required for domestic charging, accelerated chargers, and fast-charging stations, as well as the real-world electric and petrol range.

Taxi Fares in Spain: A Look at Las Palmas

In a separate development, the plenary session of the Las Palmas de Gran Canaria City Council has finally approved the urban taxi fares. This decision comes after more than a year of demands from the majority of the sector. Employer associations initiated protests in March, which were suspended after the Councillor for Mobility, José Eduardo Ramírez, committed to resolving the issue this month. The measure was fast-tracked into the plenary session agenda.

Consequently, prices will increase by an average of 14.71%, the percentage requested by the sector. However, an economic study commissioned by the council to justify the tariff revision suggests that taxi drivers would require a 19.05% increase to balance income and costs, nearly five percentage points higher. Despite this, associations and cooperatives propose moderating the increase, believing that "higher increases" could lead to a reduction in clients, ultimately decreasing sector revenue and worsening their financial situation.

The authors of the study estimate that the tariff revision could boost annual gross income by approximately seven million euros, equating to an extra €4,500 per license per year, or €375 per month. Despite the fare increase, which requires final approval from the Canary Islands Price Commission before implementation, the taxi prices in Las Palmas de Gran Canaria are set to remain the cheapest in all of Spain. According to a comparative study by Facua in 2021, journeys of up to five kilometres in Las Palmas cost 22% less than the average price in the 56 major Spanish cities. Therefore, the 14.7% increase will only cover approximately "two-thirds of that fare differential.""

Frequently Asked Questions

Q1: What is the main advantage of the LEVC LX for taxi drivers?
The LEVC LX is designed with exceptional accessibility features, making it ideal for transporting passengers with mobility issues, including wheelchair users. Its spacious interior and user-friendly features enhance passenger comfort and ease of boarding.

Q2: Why is the LEVC LX considered expensive for the Spanish market?
The initial purchase price of the LEVC LX is significantly higher than conventional vehicles used for taxi services in Spain. Furthermore, it exceeds the eligibility threshold for national subsidies under the Plan MOVES III, making it difficult for individual taxi drivers to afford without additional local or regional support.

Q3: What are the main concerns taxi drivers have about the LEVC LX?
Beyond the prohibitive cost, taxi drivers are concerned about the availability and timely delivery of spare parts due to the vehicle's exclusivity and potential reliance on international supply chains. They also worry about the learning curve for mechanics unfamiliar with the vehicle's specific engineering.

Q4: Are there any government incentives available for the LEVC LX in Spain?
While the national Plan MOVES III has limitations, some city councils, like Madrid, have announced specific subsidies. However, these are often insufficient to bridge the significant price gap.

Q5: What is the current state of taxi fares in Spain?
Taxi fares vary significantly across Spain. Las Palmas de Gran Canaria is noted for having some of the cheapest taxi fares in the country, even after recent increases. Other cities may have considerably higher rates.

If you want to read more articles similar to London Taxi's Spanish Debut: A Pricey Proposition, you can visit the Transport category.