Radio Taxis drivers on road to windfall

LONDON cabbies on the Radio Taxis circuit have voted in favour of a controversial plan to demutualise the business, triggering windfalls comprising £1,100 and shares worth about £4,000 for each member.

As part of the deal, American businessman Brian McBride will buy a 25% stake in the business for £2m and lend it £1.5m to fund its expansion into areas including chauffeured cars, minibuses and courier services.

Some members and the Transport and General Workers' Union wanted to remain independent and were suspicious of offering rival services to their own black cabs.

But more than three quarters of members voted in favour of the move, leaving chairman Geoffrey Riesel 'delighted'. He added: 'We always thought there was a silent majority of drivers in favour.'

TGWU cabbies' branch secretary Bob Hewlett said: 'It's just a sad day for the public and a sad day for the taxi driver. In five years' time, Radio Taxis won't exist as it is now.'

He said the company would move inexorably into non-black cab transport, leaving its London cabbies to suffer.

Some cabbies said Riesel had mounted a highly effective PR campaign in newspapers and trade papers, leaving the dissenters with no platform in the run-up to the general meetings. Although there are 1,500 full members of Radio Taxis, it has 2,500 drivers on its circuit.