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Taxi Profit Margins Unchanged

Cab drivers say last year's increase by FCFA 50 has not had any positive impact on their turnover.

Conventional taxi drivers contacted yesterday July 7, 2015 in Yaounde by Cameroon Tribune expressed frustration at their activity, saying one year on since fares rose from FCFA 200 to FCFA 250 and FCFA 250 to FCFA 300 at day and night respectively, business turnover is yet to witness any difference. The cab drivers complain that the July 1, 2014 hikes were cosmetic, with stakeholders continually gnashing teeth over their inability to make ends meet.

Bertin Bekono, a cab driver in Yaounde says before July 1, 2014, he had agreed with the car owner to pay in FCFA 10,000 everyday. The amount did not change with the application of the Ministerial decision announcing an increase of taxi fare. Bekono however heaved a sigh of relief thinking that the unchanged daily takings to his boss were going to impact on his personal proceeds. Far from that. “I barely survive,” Bekono said. He explained that after handing in FCFA 10,000 to his boss for over 10 hours of work, a paltry sum of between FCFA 2,000 and FCFA 5,000 is what feeds his family.

Bekono said out of five clients, only two are willing to pay the standard price. Clients have even adopted their own pricing with some offering FCFA 100 for long destinations like Acacia-Mokolo, Mokolo-Central Post office, Mvan-Mvog-Mbi, Mvog-Ada-Mvog-Mbi and Nsam-Central Post office. The argument is that the pay according to distance and means. Fotuabong Chamberline sees in this a modern form of scamming, but says they have to do with it. “It is some sort of take it or leave it on the part of clients,” he noted, saying that his profit margin has remained unchanged since the new pricing became operational.

Another driver described the activity as a game of chance whereby some days are juicy than others. Oyono Cedric says it takes the strong like him to earn FCFA 25, 000 on some days to cover up the deficits of FCFA 18, 000 of other days as total daily earning. With such amounts, it is possible to give the FCFA 10, 000 for car owners and get home with FCFA 7,000 after fueling the car. Such days are however rare, he said, explaining that the activity is strenuous, with little to show in terms of proceeds.

Fotuabong explained that the fare increase in transportation is higher for categories such as “depot” which increased from FCFA 1,500 to FCFA 2,000 by day and from FCFA 2,000 to FCFA 2,500 by night, which is an increase of 25 to 33 per cent. The per-hour rate, moved from FCFA 2,500 to FCFA 3,000. Even at this, cab drivers insist that profit margins remains unchanged, caused by the 14-15 per cent increase in the prices of petrol, diesel and cooking gas after the elimination of the up to 35 per cent of fuel subsidies last year.

“The surplus from the increase of fare prices is taken off by fuel and same story continues,” explained Bekono. Both cab drivers insisted that the business far from being juicy. “Earnings are reasonable when on weekends, some car proprietors don’t collect daily takings from drivers,” they say.

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