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A drop in bookings by financial companies, particularly in Canary Wharf, has contributed to a slowdown in Addison Lee’s business in London this year, according to the minicab company’s chief executive.
Liam Griffin said bookings for Addison Lee’s courier business, which he described as a “true measure” of London’s economic activity, had fallen 10 per cent year-on-year in the first two months of 2024, following a strong performance in 2023.
“We would consider ourselves the barometer for economic activity in London. It was strong through calendar year 2023 but has definitely softened a little in 2024,” he said.
“We see production companies and a lot of media houses are very busy, but equally we can see some city financial [companies] and that type of industry are quieter than we would normally expect,” he said.
The Canary Wharf financial district in particular had struggled with the after-effects of the pandemic and had recovered only half as quickly as the City of London, Griffiths added.
“We would like to see more [activity] happening, and the City to be busier once more.”
Some major tenants have left or cut the space they occupy at Canary Wharf as working habits have changed and the need for office space has fallen.
Still, Griffin said Addison Lee had put the pandemic behind it. The company, which provides private hire, taxi and courier services, reported a 14 per cent rise in operating profit to £14.2mn in 2023.
Griffin, whose father set up Addison Lee in 1975, bought the business back from private equity group Carlyle in 2020 as part of a consortium of investors.
The new owners refocused the business on its core market of London and on corporate accounts.
“We have sat in this premium niche we think people are prepared to pay for,” Griffiths said.
Amid an industry-wide shortage, Addison Lee has also started using freelance drivers with their own cars to help increase capacity. The company now had 7,500 drivers, he said.
“Historically every single driver was in an Addison Lee vehicle . . . but it was a challenge to recruit out of Covid and to meet the demand. The drivers during that period became more independent, and wanted more flexibility.”
