LONDON HC TRADE’S CHALLENGE
Article by Sam Pooke Senior Public Affairs Manager FREENOW UK,
free-now.com
When thinking of London and its history, it’s imposs- ible not to think of the iconic black cab. However, the number of drivers has steadily declined in recent years because of several significant barriers. Economic strain, such as the cost of vehicles and the notoriously challenging Knowledge exam, is off-putting to those thinking of a career as a cabbie. According to the latest data from TfL, there are only 17,310 licensed taxi drivers in London - the lowest for 40 years.
So, what can be done to revitalise the industry?
THE COST OF BECOMING A CABBIE From flexible hours to being your own boss, working in the industry has many benefits. However, entering the trade can present significant financial implications for drivers. A FREENOW survey revealed that 94% of cabbies feel the cost of purchasing or renting a black cab has negatively affected their finances, which is exacerbated by the current cost-of-living crisis.
This financial burden extends to transitioning to electric vehicles. FREENOW research indicates that 9 in 10 respondents emphasise the importance of making EVs more affordable to support drivers in this transition. To address these challenges, increased government support is crucial in alleviating financial barriers. For instance, offering low-interest loans or grants, such as the recently extended Plug-in Taxi Grant that assists cab drivers switching to electric models, plays a pivotal role.
Another pain point is the very limited vehicle choice due to current vehicle requirements, such as the turning circle, or the need for larger battery capacities. This means that drivers don’t have other more affordable and fully EV options available. This not only impacts the costs faced by drivers but also creates a roadblock to the availability of fully electric cabs in the capital and beyond, which is critical for the sector.
ACCELERATING THE SHIFT TO EVs
With the industry striving to reach net-zero targets, there is mounting pressure for taxi drivers to switch to EVs. For example, a study by Capital Economics for ScottishPower estimated that the UK will need 25.3 million chargers by 2050 to hit the legal net-zero carbon emissions target, equivalent to installing an incredible 4,000 per day.
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However, the lack of charging points and the signifi- cant disparity in charging infrastructure across London - with many charging points located in wealthy areas where many taxi drivers do not live - makes the switch much harder. For example, the top five boroughs for EV chargers are Westminster, Kensington and Chelsea, Hammersmith and Fulham, Wandsworth, and Richmond. In contrast, according to data, the most common areas of London where cabbies live are Tower Hamlets, Newham, Brent, Redbridge, Greenwich, Dartford and, Barking and Dagenham.
Therefore, a wider distribution of charging points is crucial so that EV driving is accessible and feasible for all taxi drivers.
MASTERING LONDON’S STREETS
The Knowledge stands as a testament to the expertise of black cabbies. Spanning 1 to 4 years and costing up to £10,000, it involves memorising 25,000 streets and 100,000 landmarks near Charing Cross, mastering 320 routes and undertaking 12 comprehensive interviews. While it demands years of dedication and financial investment, it highlights that no one understands London’s roads better than these drivers. Despite its challenges, the exam ensures drivers are well- prepared and highlights their impressive commit- ment to the trade.
However, it is undoubtedly no easy test, which is why, according to Mayor Sadiq Khan, 70% of drivers who start the Knowledge do not complete it due to its cost and time commitment. To overcome this, last Novem- ber, FREENOW launched the Knowledge subsidy to cover the costs of transitioning from a PHV driver to a black cab driver, aiming to enhance earning potential for drivers. This includes covering application costs, tuition fees, exam costs and licensing expenses, amount- ing to over £2,000 per driver over a minimum period of two years. Since the launch, FREENOW has received over 950 applications, and 181 of those drivers are enrolled in the Knowledge to become black cab drivers.
EMPOWERING NEW DRIVERS FOR A THRIVING SECTOR
Overall, it is imperative to maximise efforts to actively encourage and support new drivers in the industry. The taxi industry offers great benefits as a career path, but by providing additional support and breaking down barriers such as financial constraints, the sector can get back on track to being a more accessible environment for all.
JULY 2024 PHTM
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