DIVERSITY IN THE UK TAXI INDUSTRY
Article by Sam Pooke FREENOW UK
www.free-now.com/uk/
The UK taxi industry faces a significant diversity gap, with certain groups underrepresented. Recent research shows that female taxi drivers make up only 1.5% of the total taxi workforce, and the industry struggles to attract younger people, as drivers are predominantly aged 54 or older. While 15% of newly licensed drivers now come from BME communities and 28% of those taking the Knowledge exam are from these groups, financial barriers and other challenges still hinder the recruitment of a younger, more diverse workforce.
Adding to the challenge, a new report by Centre for London, with the support of FREENOW, shows the number of taxis in London is declining at a rate that could see Black Cabs disappear from the capital’s roads within 20 years.
As such, more support is needed to grow the trade, breaking down barriers for young people and women while creating greater inclusivity to safeguard the future of one of London’s most iconic symbols.
Why diversity matters in the taxi industry
As taxis serve a wide range of passengers from different backgrounds, a diverse driver base helps create trust and ensures better customer service. Statistics show that women take more taxi trips than men, so there is a notable demand for female drivers. A diverse driver base not only meets these preferences but also contributes to a more welcoming environment for all passengers.
inclusive and
Additionally, with many current drivers approaching retirement - 21% of whom are aged 60 - we could see a large portion of drivers retiring at once, leaving a significant gap in the workforce.
Addressing barriers to entry
A major obstacle that discourages many from entering the industry is the Knowledge of London exam. It can take as long as 3-4 years to complete and can cost drivers up to £10,000. The test demands significant dedication, time and financial resources, which can discourage potential drivers. Aspiring drivers face challenges like the steep costs of renting or purchasing a vehicle. Our research found that since 2017 (when the
16
new electric Black Cab was introduced) there has been a 39% increase in the upfront cost of buying a new cab, yet all financial aid schemes are set to be scrapped by 2026. This can be particularly difficult for students entering the workforce with limited savings, as well as for women, who may already experience pay disparities.
Getting new drivers on board
Implementing measures that support new taxi drivers is crucial to overcoming some of these challenges and alleviating pressures. We launched a Knowledge subsidy programme to help drivers with the cost of the Knowledge test and recently introduced an exclusive bonus for female taxi drivers to celebrate International Women’s Day 2025, aiming to encourage more women to join the FREENOW platform and promote a more diverse, inclusive service for all passengers.
Female drivers in London who completed their registration with FREENOW by 31 March qualified for a £500 bonus and were able to take advantage of the existing 0% commission for their first six weeks. This special offer is part of FREENOW’s ongoing efforts to empower female drivers and provide them with a rewarding and flexible earning opportunity.
The number of taxis licensed by TfL has declined significantly over the last decade. As of April 1, 2024, the number of licensed taxis in London stood at 14,800, reflecting a 34.2% decrease over the past decade from a peak of 22,500 in 2015. This decline has sparked concerns about the future of the industry. To address this, it is vital to attract new drivers into the sector by reviewing the Knowledge test but also ensuring drivers can be supported to acquire their taxis via the Government Plug-in Taxi Grant, which has been reduced again from £6k to £4K, to help purchase zero- emission cabs.
The road ahead
The taxi industry must adapt to remain relevant in an evolving transport landscape. Encouraging diversity is not just about representation, it’s about building a more
resilient, inclusive and customer-focused
service. By addressing barriers, offering support and fostering an inclusive culture, the trade can ensure it remains a viable and attractive profession for generations to come.
FREENOW’s latest initiatives are a step in the right direction, but lasting change requires broader support from the Mayor of London and the government.
APRIL 2025 PHTM
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