Energy and finance company Octopus have revealed more steps to support taxi operators through the disturbance that continues to be triggered by the COVID-19 outbreak.
In the past week, Octopus has been carefully observing the scene of the taxi business. The firm has been attentively hearkening to the response from operators about how this is impacting the business.
Apart from the agreement on last week that they will restore ad delay the next least distance check level to 1 October 2020, the company revealed on Friday that they are starting an added step: a 3-month payment vacation for distance ridden in the months of April, March, and May 2020.
The distance ridden in these 3 months will carry on to be logged. However, those on the present ‘Pay As You Use’ investment choice with Octopus will not be charged in this duration. Rather, the total distance traveled in May, April and March will be reached in 24 parallel payments from the operator’s monthly immediate debits over the following two years.
This will enable the operators to carry on utilizing their cars minus any urgent demand to pay for the affiliated mileage.
Here is an instance to demonstrate:
- You ride a whole 6,000 mile in May, April, and March 2020
- Your cost per mile is £0.40. This implies they have an unpaid balance owed of £2,400
- The 6,000 miles balance is split into 24 payments of 250 miles each month
- The 250 miles for each month is reclaimed at your cost per mile of £0.40, leading to a £100 monthly cost
- The initial installment of this distance reclaim will appear in your direct debit set on July 1, 2020. Also, it will be an increase to your distance payment payable in June 2020.
An additional £100 would then be obtained in every of the subsequent 23 months of direct debits. This will be so till the £2,400 balance is completely repaid.