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Things move fast in the Irish taxi industry, adaptation is key to what's NXT

Vincent Kearns explains the driving forces behind the deal to merge Xpert Taxis and National Radio Cabs.

THE FIRST FLOOR of Xpert Taxis company’s offices was a little busier than usual on a Thursday morning in late January. The company is rolling out a new tech system for bookings that its staff is just getting used to.

“On a scale of one to 100, one being dreadful and 100 perfection – on Monday we were working at 10, Tuesday 50, Wednesday we were 70 and we hope to be up to about 100 tomorrow,” Vincent Kearns, the chief executive of Xpert Taxis, told Fora at the company’s office in Ballymount.

Things move fast in the Irish taxi industry, with ride-hailing apps like Free Now and Uber, disrupting the way things used to work. If you’re not adapting, you get left behind.

Xpert Taxis has certainly been adapting – Kearns maintained the company has made huge investments in technology since first launching back in 2005. Tech won’t do it on its own though and for the company to continue to grow it decided to merge with National Radio Cabs, one of Dublin’s oldest taxi companies.

Kearns told Fora the merger has been in the works for the past two-and-a-half years. Back in September after both companies had fully agreed on a deal, National Radio Cabs moved into Xpert’s office.

The office was filled with some of the new company branding, which is called NXT – and pronounced “next”. Daily calendars were spotted on desks upstairs with the navy and blue logos – featuring the letters surrounded by a hot air balloon – and in the entrance hall downstairs new business cards lined a desk.

“Now we are in the process of a gradual roll-out of our new branding, a gradual branding of our cars and driver uniforms,” he explained.

The Dubliner said he reckons it will take another six months for NXT to be working seamlessly. He’s not too fussed on getting the message out to the public that the two have merged, as both have a loyal customer base who continue to call for cabs every day of the week. 

Xpert carved a market out for itself among corporates and holds accounts with Intel, Three, Vodafone, large banks and legal firms while National Radio Cabs had accounts with the likes of the HSE. 

taxidrivers-in-the-high-court Kearns as VP of the National Taxi Drivers Union speaking outside the HIgh Court in 2000 Gareth Chaney / Photocall Ireland! Gareth Chaney / Photocall Ireland! / Photocall Ireland!

Striking a deal

Under the deal, Kearns remains chief executive, with Xpert Taxis owning 49% and National Radio Cabs owning 51% in the company. It has grown the fleet size to 700 cars.

“If you look at it overall, I think both sides had to concede on certain issues, otherwise it never would have happened,” Kearns said when asked how both sides reached the deal.

One issue that they had to work around was that of executive directors, but Kearns explained both sides did reach a middle ground.

“When it came down to positions, National Radio Cabs had three executive directors, whereas we only had one executive director – me, I’m not a big believer in executive directors because if your board are also executive directors it leaves you nowhere to go if at management you can’t agree on something,” he explained.

“I said I wouldn’t agree with that structure so we have three executive directors now but we have agreed to have six people on the board, so there are three others that aren’t working in the company,” he said.

“If there’s a dispute among ourselves, their input can help make a decision on what path to take.”

Another issue that had to be worked out was regarding redundancies. With 52 employees now working for NXT, Kearns said the company was faced with the prospect that some former employees didn’t want to make the transition to the new company. 

“Certain members of staff decided they weren’t willing to see change and didn’t want to move with it. A very small number opted for redundancy but the majority came along with us,” he explained.

Nevertheless, Kearns explained that he and Liam Brady, managing director of National Radio Cabs, knew each other for many years and had a good relationship and trusted each other, so felt comfortable going into talks together.

Growing market share

For Kearns, the merger was an organic one. He explained that over the past five years, he had begun to acquire the smaller taxi companies around Dublin that weren’t able to keep up with the changes in the industry.

“We acquired the likes of A to Z taxis in Walkinstown, Local Cabs in Dundrum, Near Cabs in Drumcondra, Finglas Cabs, Ashbourne Cabs and Terenure Taxis,” he explained.

“In Dublin, we cover north, south, east and west Dublin and we have expanded that to include Kildare, Wicklow, Meath, so by acquiring these companies we are getting local drivers who are familiar with the areas,” he said.

In the past five years, he estimated the number of taxi companies has been reduced by 60%. This is predominantly because they haven’t had the funds to adapt to new technologies and change as the taxi apps have come along.

Kearns got a taster for how the company could grow through acquisitions but decided it was time for a bigger deal.

“I was thinking about what’s the next best thing I could do for growth. It’s about looking at cost and efficiencies so it seemed natural to move towards a merger,” he said.

“In the last 15 years, two major companies have never merged in this industry. There were meetings with various companies but the talks would break down,” he explained.

ciiechina-shanghai-ciie-automobile-exhibition-area-cn Toyota Mirai, hydrogen fuel cell vehicle Xinhua News Agency / PA Images Xinhua News Agency / PA Images / PA Images

The future of green

Going forward, Kearns said the company is looking to launch a fleet of hydrogen cars. 

“We will be the first taxi company in Ireland to have a fleet of hydrogen cars by hopefully 2022,” he explained. 

With corporate clients making up the majority of NXT’s client base, Kearns explained they are beginning to focus their attention on climate matters.

“A lot of companies are serious about their corporate social responsibility and they are looking at our ethos to see if it’s the same,” he said.

Kearns said he is in talks with Toyota and other international groups on delivering a fleet of hydrogen cars. Because they have not yet been tested in Ireland, he said the company will be acting as a test bed.

“Sometimes it’s foolish to be the test pilot because we will have to tease out all the issues with them and the later adopters who get the real benefit,” he said.

Nevertheless, he is optimistic about the results, referring to the fact he trained as a mechanical engineer and has a large interest in hydrogen cars.

Get our Daily Briefing with the morning’s most important headlines for innovative Irish businesses. 

Written by Laura Roddy and posted on Fora.ie

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    Mute Damien
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    Jul 30th 2016, 11:29 AM

    Genuine Question: If they made a billion euro profit in the first 6 months, are they making repayments to the government for the bailout?

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    Mute PaulJ
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    Jul 30th 2016, 11:37 AM

    AIB is actually 99.8% owned by the state but this is such a f*cked up little corrupt country we live in I wouldn’t be surprised of the state see any of money even though we own the bank!

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    Mute Jonny Martin
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    Jul 30th 2016, 11:46 AM

    No, the bail out isn’t a loan with repayments. The Government bought shares in the bank and will only get repayment by selling those shares at some stage. The banks pay a levy to the exchequer and they could potential pay dividend on the shares owned from their profits (not happening now) but either of those payments wouldn’t be repayment of the bail out

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    Mute david verdon
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    Jul 30th 2016, 12:01 PM

    They repaid 1.6 billion to the exchequer in December 2015. An argument could made for holding on to it for another 20 – 30 years and taking parachute payments like that over the term but more than likely government will look to sell in the near future to make back some of the investment / bailout.

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    Mute Tweety McTweeter
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    Jul 30th 2016, 12:23 PM

    Their balance sheets are evidently still pretty shaky so there is no point in them paying out large dividends to the State until they have their own house in order, i.e. reinvest most profits back into bank for now

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    Mute Damien
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    Jul 30th 2016, 12:24 PM

    Ah, thanks guy. I wasn’t sure how that worked.

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    Mute Brinster
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    Jul 30th 2016, 12:29 PM

    @ Damien. Johnny is not correct at all in what he is saying. AIB is rightly making repayments to the State right now. They repaid 1.6 billion three days ago. Widely reported – http://www.irishtimes.com/business/financial-services/aib-to-return-1-76bn-of-bailout-funding-to-the-state-1.2735276.

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    Mute Brinster
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    Jul 30th 2016, 12:30 PM

    @ Damien. Mind you, that is a fraction of what those robben b’trds owe us.

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    Mute Al Ca
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    Jul 30th 2016, 11:09 AM

    I stress tested my mattress…….it still has room for a lot more Euro.

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    Mute John Fergus
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    Jul 30th 2016, 11:35 AM

    Problem is that the next crisis will likely result in a massive drop in the value of the euro. Any euros you put in your mattress now might well be worth s lot less in the future.

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    Mute Al Ca
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    Jul 30th 2016, 12:27 PM

    In the last bust…if I had just kept my money in the mattress and not invested it using ‘experts’ I would have been 12k better off.

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    Mute Alois Irlmaier
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    Jul 30th 2016, 2:29 PM

    How did Merkel test the stress test of Sperm Banks then?

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    Mute Alois Irlmaier
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    Jul 30th 2016, 2:30 PM

    Not by making a deposit then anyway?

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    Mute John Fergus
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    Jul 30th 2016, 11:08 AM

    no surprises there then, the government will still stand over them and continue to asset strip the state to do so. Its morally flexible stroke politics on all sides,
    https://youtu.be/Gr39rdDkEIY
    Its time to start calling a spade a spade. Right now the foxes are investigating break-ins at the hen house. That needs to change and fast.

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    Mute John Fergus
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    Jul 30th 2016, 5:03 PM

    The savage eye dealt with this topic well.
    https://www.youtube.com/watch?v=0HuBt56lUcE

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    Mute Dave Smith
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    Jul 30th 2016, 11:10 AM

    ever decade there has been a mini crash of some sort, a few interest rate spikes and these banks will be looking to pick our pockets again.

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    Mute rodrigo detriano
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    Jul 30th 2016, 1:50 PM

    Don’t borrow, don’t save and don’t set up standing orders or direct debits. It’s the only way to be.

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    Mute FlopFlipU
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    Jul 30th 2016, 11:27 AM

    The bankers are all well ,it’s the pleb’s that are at risk as always

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    Mute ben
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    Jul 30th 2016, 12:27 PM

    The bank after how many years of destroying our economy are still no were near a solid foundation our governments have failed and set us up for another fall..

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    Mute Aoife
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    Jul 30th 2016, 11:15 AM
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    Mute John Campbell
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    Jul 30th 2016, 12:21 PM

    Yes, we heard all this before and the mantra about the ‘soft landing’. I dread to think what a hard landing would be like in the lingo of the banks. Just don’t trust them!

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    Mute Brian Holmes
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    Jul 30th 2016, 11:06 AM

    How do they know what AIB will be at at the end of 2018

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    Mute Cian O Donoghue
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    Jul 30th 2016, 11:12 AM

    Buy gold

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    Mute Bobby Fox
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    Jul 30th 2016, 12:25 PM

    Buffet says equities beats gold into a cocked hat and he’s right ..

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    Mute Dave Smith
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    Jul 30th 2016, 1:28 PM

    for most irish people, paying off their credits cards would be better advice…baby steps

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    Mute Alois Irlmaier
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    Jul 30th 2016, 1:52 PM

    Have children, then you can send them as child labour for the up coming WW3?
    Or just post your granny to Cash my granny for gold to…
    Seriously the world now has a system where debt is traded as a commodity? I suppose you can thank Bill Clinton for that???
    Would Platinum be better?

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    Mute Goldberg
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    Jul 30th 2016, 12:18 PM

    They are both failed businesses

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    Mute Alois Irlmaier
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    Jul 30th 2016, 1:56 PM
    3
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    Mute Joey Gee
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    Jul 30th 2016, 1:12 PM

    What no one in Ireland is telling us is that this whole exercise is based on fantasy.
    Fantasy because, at the behest of the commission, Greek, Portugese,,Slovenian nor Cypriot and other ‘small banks’ were totally excluded form the test. At the same time, certain other banks were also excluded.
    Why?
    Brussels pulling another fast one.

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    Mute Alois Irlmaier
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    Jul 30th 2016, 2:25 PM

    Is the E.U. Stress test a way to make sure the banks here BORROW more money from the ECB?

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    Mute Gerry Dunne
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    Jul 30th 2016, 2:12 PM

    Was wondering if that Italian Bank has just done an Anglo style deal just like the one the 3 robben bistards got jailed in hotel mountjoy for.

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    Mute Turk Oneeighttwo
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    Jul 30th 2016, 11:39 AM

    @Brian Holmes… Using projected trading figures and then a hardcoded stress test/worst case scenario, projected figures must be realistic based on current trading stats. Banks would further prosper if rates were higher but that’s not realistic presently

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    Mute Dean Burroughs
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    Jul 30th 2016, 2:15 PM

    Can we not just keep AIB and use its profits to run the HSE. While we are at it how about means tested state mortgages fair deals in the region of 500 euro per month under strict conditions if you miss 3 months of payments you are out,If you loose your job you have 6 months to find employment or you are out. No ifs or buts those are the rules kind of deal. can this not be done? Ignore the EU on certain social issues and fix the country.

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    Mute Bobby Fox
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    Jul 30th 2016, 6:18 PM

    Good point.banks can leverage money on deposit 33 times.they can take your 1000€ on deposit pay you a pittance in interest then lend out 40,000€ at 5+times the interest.its a license to print money that only morons could F up . Why should banks be in private hands ?

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    Mute Sean @114
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    Jul 30th 2016, 11:26 PM

    “Let’s keep the recovery going”.

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    Mute Micheal OLainn
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    Jul 30th 2016, 3:49 PM

    If the actual level of real mortgage impairments were to be fully reflected in AIB Mortage Bank’s balance sheet, the position would be an awful lot worse. The high Court and Master’s List in Dublin are full of cases by AIB and AIB Mortgage Bank.

    AIB and AIB Mortgage Bank are not cutting deals because they simply can’t afford to realise any losses and reflect these on their balance sheets.

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    Mute Micheal OLainn
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    Jul 30th 2016, 4:37 PM

    Reflecting the true extent of mortgage impairments would mean that AIB Mortgage Bank is grossly insolvent.

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    Mute Ava Emc
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    Jul 30th 2016, 9:47 PM

    Could someone tell me what this means for us that have some savings in these banks? I am clueless in finance. Thanks.

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    Mute Alois Irlmaier
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    Jul 30th 2016, 1:47 PM

    Who came top here as stable??

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    Mute Al Ca
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    Jul 30th 2016, 2:15 PM

    Mickey “Knuckles” O Brien’s Savings and Loan Shark Company.

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    Mute Alois Irlmaier
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    Jul 30th 2016, 2:27 PM

    Thank God, I thought it would be Mickey the Rat Savings and Loan then ;0)

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    Mute Alois Irlmaier
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    Jul 30th 2016, 2:28 PM

    Nothing to do with the DJ of the same name…

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    Mute von
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    Jul 30th 2016, 5:25 PM

    Skum the lot of them. MONEY MONEY MONEY hope they are happy.

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    Mute von
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    Jul 30th 2016, 8:13 PM

    The Banks don’t give a chit as long as they can rip the public off, its nothing to do with humanity they take Houses off people like sweets no concience.

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