The UK economy may be returning to normal after a year of COVID lockdown, but the rush to a full-time private hire taxi business may take a little longer. You can still boost your taxi income by joining the army of drivers in the burgeoning fast food delivery sector. We look at the trends affecting the fast-food delivery sector and what extra private hire taxi insurance or courier insurance coverage you may need to cover all eventualities.
A recent report by the BBC showed that while the food and soft drinks market nearly halved to £26bn from March to January compared with the previous 10 months, the value of deliveries more than doubled, soaring to almost £6bn. This mainly took the form of fast food. There was much bigger growth for deliveries from restaurants with table service, that value jumped nearly 250 percent as struggling restaurants looked around for ways to generate cash.
While younger people have been hit hard in the pocket by the coronavirus crisis, that group still spent more than £812m on food deliveries, a 150 percent increase compared with the time immediately before coronavirus.
And despite a lacklustre IPO by Deliveroo, the company still showed a modest profit from its first day of trading. So, it’s a strong market trend that looks set to stay. And if you’re still not convinced then ask yourself this question as a private hire taxi driver: have you or your friends ever ordered, or considered using, a food delivery service?
Extending Your Taxi Offering
Private hire taxi drivers and taxi fleets around the country are still feeling the effects of the COVID pandemic and are pivoting their business to include fast food delivery from restaurants in their locality. And you don’t even have to join Just Eat or Deliveroo as a driver.
Your taxi licence will already be in place, your vehicle sound, and the correct private hire taxi insurance provisions still active whether you are an independent taxi operator or part of a fleet. But if you’re transporting goods, in this case fast food, then you will need to add a couple of extra protective insurances, namely courier insurance and good in transit insurance.
Courier insurance will give you protection when you’re visiting multiple sites in a hurry, where food deliveries have the potential to be lost, stolen or damaged in transit. A good courier policy should also protect you against the risks you pose to other road users as well as their vehicles, property and persons.
Some courier insurance policies can include an element of goods in transit cover, but only up to a certain value, so it’s good to check the small print and whether the amount is enough to cover your needs. You’ll need a goods in transit policy to cover the fast food that you are delivering from the restaurant kitchen to the customer’s doorstep.
You can also bolt on public and employers’ liability insurance as well as other business covers that may be required to create a single policy that meets all your needs.
Other insurance cover you might want to look at are:
- Cash protection – to cover the cost of any potential losses through theft
- Legal protection – to cover you against any legal costs
- Stock cover – to safeguard against the cost of replacing those meals in the event of equipment breakdown.
Many insurance companies are now offering their policyholders fast food cover at no extra cost for those that have existing taxi policies with them. It’s in appreciation that their customers need that extra support in these challenging times. Check with your insurance broker to see how they can help your taxi business.