Councillors have voted to retain Aberdeen's controversial Street Knowledge Test despite opposition from global giant Uber and AGCC research highlighting the economic advantages of its removal.
Following a crunch meeting yesterday with emotions running high, councillors voted unanimously to retain the Street Knowledge Test for at least the next two years when the issue will be looked at again.
Representing the Chamber's position at the council's Licencing Committee on Wednesday, Jason Stewart, Commercial Director at Aberdeen & Grampian Chamber of Commerce, asked councillors to review and reform taxi and private hire licencing to take account of developments in technology such as Satnav.
He described the Street Knowledge Test as a barrier to entry to the trade and asked for its removal to increase taxi provision across the city.
Mr Stewart called for a "pragmatic" approach to address unmet demand during peak periods causing "clear harm" to city's reputation and economy.
He said: "The reason AGCC takes an interest in this issue is that we recongnise that the unmet demand - to be clear, during peak times and at key venues - for taxis and private hire cars in Aberdeen is holding our city back.
"We undertook some research with our business network on this issue and we were struck by the level of engagement we received.
"Not only through a business lens but as residents of Aberdeen and people who go about their day-to-day lives in our city,
"75.8% of our respondents said they find it difficult to obtain a taxi or private hire vehicle, with almost two thirds of respondents, 65.8%, describing availability as limited.
"The research identified evenings, weekends, and late periods as the greatest pressure points."
Mr Stewart continued: "This is more than simply an annoying inconvenience for residents. From a business perspective, the shortage of taxis and private hire vehicles in Aberdeen represents a huge economic opportunity cost.
"It makes it more difficult to do business here in Aberdeen and it damages our city's reputation.
"We have one chance to make a first impression on those arriving in Aberdeen. Adequate taxi provision is an essential part of our transport infrastructure and connectivity.
"It's important to our reputation as a place to do business and our ability to attract investment to our region."
He went on: "Our research showed that almost 65% of respondents have changed their plans because of uncertainty about getting home safely or reliably.
"Of those, 96% told us they would use hospitality venues, attend events and use evening economy services more often if the taxi or transport availability was improved, spending an average of £50 extra per visit."
Commenting after the meeting, AGCC Chief Executive Russell Borthwick said: "We are frustrated and disappointed that councillors have missed this opportunity to modernise taxi licensing arrangements in Aberdeen.
"It's abundantly clear that Aberdeen needs more taxis and private hire vehicles at peak times, and at transport hubs like the station and airport. That unmet demand is harming our city's reputation and holding back our economy.
"Councillors had the chance today to modernise licensing requirements; instead, they have left out-dated barriers in place, such as the Street Knowledge Test, which is quite unnecessary for pre-booked cars thanks to modern technology.
"This decision leaves Aberdeen stuck in second gear while we watch cities that have modernised their requirements surge ahead."