FREENOW: LONDON TAXI TRADE SURGING COSTS WILL THIN THE NUMBER OF
Article by Danny O’Gorman UK General Manager Freenow by Lyft
www.free-now.com/uk/
CABBIES SERVING LONDONERS AND VISITORS How passengers share the burden
The future of the trade is severely under threat, and urgent action is needed. Cabbies provide a safe and accessible transport option for millions across London.
The taxi trade is a lifeline for many passengers and cities, yet it is being suffocated by relentless cost hikes. This is unsustainable for current drivers and provides little incentive for new entrants to join the trade.
The recent increase in taxi/PHV licensing fees, along with rising Knowledge costs proposed by TfL, create further barriers for an industry already under pressure.
The current landscape
Over the past 12 years, driver numbers have fallen by more than 25%, dropping from 22,000 to 16,100 in 2026. Taxi driver numbers are now at their lowest since 1975.
The trade is already costly. Drivers face high vehicle purchase prices, escalating EV charging costs, and the looming introduction of pay-per-mile road charging for EV/plug-in vehicles. Combined with uncertain income and the significant time required to pass the Knowl- edge, these factors are already discouraging new en- trants. So why are we making things more challenging? It is a time to encourage uptake, not discourage it.
Fees disrupting a lifeline
Taxi driver licence fees are set to rise by almost 15%, from £300 to £343, while PH driver licence fees will increase from £310 to £343. On top of this, taxi vehicle licence fees, taxi driver and vehicle application fees, and grant- of-licence fees are also increasing. More PH fee hikes are expected, aside from vehicle licence fees that have been frozen, but this can hardly be considered a victory.
The Knowledge, globally recognised, gold-standard qualification that commands respect across the sector and the public, remains a key draw for many entering the trade. Freenow continues to offer financial support for drivers:
https://shorturl.at/xpa7t However, the pro- posals set out in a Finance Committee paper last week outline increases in the KOL assessment and examin- ation fees which can create significant financial bar- riers. These costs deter newcomers as well as threaten to stall the progress of those already in the system.
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For many, black cabs are not just a convenience, they are the only viable link to the city. Tubes and trains often fail to cater for people with mobility issues; wheelchair users are frequently blocked by out-of- service lifts and the lack of step-free access. As price hikes discourage drivers from entering or remaining in the industry, accessibility for those with mobility needs is increasingly at risk.
Safety is not a luxury, it is a right. Recent Freenow by Lyft research shows that 73% of people feel unsafe in their own cities at night, while 86% feel nervous going home alone after a night out. For 74% of people in the UK, the decision to stay out or head home early depends on access to safe transport. With door-to-door service and mandatory DBS checks, black cabs offer reassurance, with 47% of people perceiving them as safer than other options.
Removing this trusted and essential transport does not just affect an industry, it creates a mobility barrier for those who already feel vulnerable on our streets. Instead of creating new hurdles, we should be cham- pioning a trade that delivers security, reliability and inclusivity, and working to support the communities that depend on it.
A call for action
The evidence is clear: the London taxi trade is at a critical point. TfL’s rising licensing and Knowledge fees will create barriers to entry and retention that are simply too high for many.
If driver numbers continue to fall - already at their lowest level in 50 years - both passengers and drivers will lose. Without immediate intervention to reduce fees and provide better support for aspiring drivers, London risks losing a safe, accessible and reliable transport option. To ensure black cabs remain a lifeline for the city, Freenow by Lyft is calling all relevant stakeholders to ensure measures are in place to support the trade and to keep it alive.
MARCH 2026 PHTM
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