CAPITAL NEWS
CALL FOR PHV LICENCE CAP AND REGULATORY REFORM UNITES TAXI AND PRIVATE HIRE DRIVERS
The London Assembly Transport Committee is pushing for “radical action on private hire licensing” and a cap on private hire vehicle numbers to address a “steep decline” in licensed taxis. The worrying situation is largely attributed to the surge of app- based operators such as Uber, Bolt, and Free Now. The Committee, chaired by Elly Baker, noted that the “advent of app-based operators” has “irrever- sibly changed the landscape” for cab drivers in London and led to a staggering 106,000 PH drivers licensed by TfL, causing “extreme competition for fares.” In letters sent last month to both the Transport Secretary and the TfL Commissioner, Ms Baker repeated the Committee’s calls for a cap on PH licences, stating that they “cannot see the reasoning behind continuing to resist this call, which has wide support across taxi and private hire drivers”. She warned that: “There are too many private hire vehicles doing too few trips, adding to congestion and pushing down driver pay. “As drivers work longer hours to make up their pay, this leads to driver fatigue and raises questions around road safety. “London is often seen as world- leading when it comes to transport systems. Yet, if we continue to lack the regulatory powers other cities have, we risk attracting bad actors who can exploit drivers and jeopardise the safety of Londoners.” She also criticised the slow government response to drivers licensed outside of London working predominantly in the
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capital which has exacerbated the density of drivers. Ms Baker said ministers have not addressed this issue “urgently” enough, instead kicking the can further down the road.
The decline in traditional black cabs is stark, falling from 22,810 in 2014 to 14,800 in 2024, partly due to the barrier to entry proving too expensive with the cost of com- pliant vehicles at least £70,000. To combat this, the Committee recommended an extension of the £7,500 plug-in taxi grant for drivers buying eligible, low-emission vehicles and exempt taxis from VAT by the end of this year. Ms Baker urged TfL to set a specific target to
increase black cab
numbers, suggesting their Taxi and PH Action Plan, launched in March, does not go far enough in addressing the crisis, saying: “It’s time TfL gets serious about protecting this industry.” The ADCU welcomed the Transport Committee’s calls, particularly those for legislative powers to establish a PHV cap, mandated data sharing by PH operators as a condition of licensing, including data on fares and algorithmic pricing and greater financial support for drivers. Cristina-Georgiana Ioanitescu, President of ADCU, shared Baker’s disappointment in TfL’s lack of engagement with the Committee before publishing its Action Plan. She stated: “We echo Baker’s calls for greater data transparency, vehicle caps, and ending the use of dangerous technologies such as Uber’s Trip Radar. These are key protections our members urgently
need in order to operate safely, and to make a reasonable living.” Ms Baker, in turn, thanked the ADCU, saying: “I’m grateful for their active participation in our evidence gathering, enabling us to understand the real-world impact of the lack of regulation on the large app-based operators. “I’d urge the Government and TfL to listen to those who live and breathe these trades, so we can genuinely move to a taxi and private hire sector that works for drivers and passengers alike.” In contrast, Trevor Merralls, General Secretary of the United Cabbies Group, expressed disappointment in the Committee’s proposals, arguing: “There’s nothing in it for taxi drivers, it’s all about PH. They’ve said nothing about giving us road access to pick up disabled passengers or how technology has blurred the lines and allowed PH to operate as a ghost taxi fleet. “Prior to this, there was 50,000 PH drivers in London - there are now more than double that. This has been at the taxis’ expense. “All our rights have been eroded. Our fares are set by TfL - PH drivers can buy cheaper vehicles and charge whatever they want. “The law hasn’t kept pace with the technology - that’s obvious.” Helen Chapman, TfL’s Director of Licensing, responded by welcom- ing the recommendations and confirming they would respond to the Committee, stating: “We remain fully committed to working with everyone to
ensure that
London has safe, accessible, and green taxi and private hire services, recognised across the world.”
NOVEMBER 2025 PHTM
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