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Hello and welcome to the July 2023 edition of TaxiPoint.
Firstly we would like to express our heartfelt gratitude for the support and kind messages we received on the occasion of our 50th edition of TaxiPoint magazine. Your words of encouragement have not only given us a boost but they also reinforce our commitment to our goals and philosophy.
In this editorial section, we always like to take the opportunity to discuss TaxiPoint and its future endeavours. As we move forward, our focus lies on enhancing industry subscription to TaxiPoint through our new WhatsApp Community and traditional eNewsletter sign-ups. While we have established a strong presence on various social media platforms and on mainstream news aggregators, we aim to expand our reach and connect with thousands more direct subscribers on our platform
throughout the remainder of 2023.
Coming soon, we are excited to introduce a new initiative to the entire taxi industry, known as our TaxiPoint Distributor Partnership. These partnerships will see us collaborate with organisations and businesses associated with the industry, regardless of their size or scale. Stay tuned for further details, as we will be sharing more information about this opportunity soon.
Once again, we extend our sincere thanks for your unwavering support, and we encourage you to share our publication with your colleagues. The more we collectively engage, the stronger and more influential your voice will be in shaping the future of the taxi industry.
Kind regards and be lucky!
TaxiPoint Editor and Founder
maintaining the appeal of electric vehicles in terms of affordability and running costs.
In the face of declining fuel duty revenue as more drivers transition to electric vehicles (EVs), a prominent think tank has recommended the introduction of a new "Road Duty" charge of 6p per mile on electric cars. The Resolution Foundation argues that this fee would help alleviate the financial strain caused by the shift away from petrol and diesel vehicles while still
However, concerns have been raised about the potential impact of such road pricing charges on industries heavily reliant on highmileage road usage, such as the taxi industry. The resolution of this issue largely depends on who would be responsible for paying the proposed charge. Ideally, the Government would acknowledge that service industries providing alternatives to private car ownership are beneficial and should be exempt from the charge. An exemption for wheelchair-accessible vehicles (WAVs) could also be considered to support individuals who rely on taxis for transportation.
In the absence of exemptions, the burden of the additional cost would
NEW 6P
MILE ROAD DUTY CHARGE PROPOSALS FOR ELECTRIC CARS COULD COST TAXI DRIVERS OVER £2,000 PER YEAR
likely fall on passengers, albeit only during the duration of their taxi journeys. This would result in increased costs for dead mileage, which refers to the distance covered by taxis without passengers. Consequently, passengers may have to pay around 10-12p per mile travelled as part of a new taxi tariff. For taxi drivers covering 40,000 miles per year, this could amount to an exorbitant bill of £2,400.
The Chancellor of the Exchequer, tasked with overseeing the country's finances, faces the urgent need to take action as nearly a third of revenue generated from fuel duty could vanish before the end of the decade due to the shift toward green motoring. This decline in revenue is attributable to the declining sales of new diesel cars and the surging popularity of electric vehicles (EVs).
Nevertheless, the impact on public finances, caused by the decline in diesel car sales and the rise of EVs, is expected to be mitigated by a temporary increase in revenue from petrol cars. In 2019, prior to the pandemic, income from fuel duty stood at £28 billion, with £16.4 billion (58.6%) derived from the 32.9 million cars in circulation across the UK at the time.
Analysis conducted by the RAC Foundation suggests that,
FOR TAXI DRIVERS COVERING 40,000 MILES PER YEAR, THIS COULD AMOUNT TO AN EXORBITANT BILL OF £2,400...
Taxi tariffs are at the centre of the taxi industry. Various factors, such as fuel costs, vehicle maintenance, insurance, fees and regulations dictate how high, or low, tariffs are set to achieve a cabbie’s living wage. Taxi tariffs also reflect the supply and demand of the market, as well as the quality and safety of the service.
However, taxi tariffs are not static. They change over time, depending on the economic conditions and the cost of living. One of the most important factors
that affects taxi tariffs is inflation. Inflation is the general increase in the prices of goods and services over time. It reduces the purchasing power of money and erodes the value of income and savings. Inflation affects both taxi drivers and passengers. For taxi drivers, inflation means higher expenses and lower profits. For passengers, inflation means higher fares and, in some cases, if their own income doesn’t rise with inflation, lower affordability. It is however essential that taxi tariffs rise in line with
inflation, to ensure a fair and sustainable taxi industry.
Raising taxi tariffs in line with inflation has several benefits. Those benefits affect not just taxi drivers, but passengers too. First, they help to attract new taxi drivers to the industry. Driving a taxi is a demanding and risky job, that requires working long hours. Working even longer hours to cover rising costs, is quite frankly not possible and can be dangerous. If taxi tariffs do not keep up with inflation, many potential drivers will also be discouraged from entering or staying in the industry, leading to a shortage of supply and a decline in service quality.
Second, they help to maintain and improve the condition of taxis. Taxi drivers need to invest in their vehicles regularly, to ensure they are safe, comfortable and efficient. If taxi tariffs do not keep up with inflation, many drivers will be unable to afford the necessary repairs and upgrades, leading
to a deterioration of the fleet and a loss of customer satisfaction.
Increasing taxi tariffs in line with inflation should not be seen as ‘greed’. It is a necessity imposed by economic reality. Taxi drivers do not want to price their passengers out of using their service, neither do they want to lose competitive edge with other forms of transport. They do however want to provide a reliable and affordable service that meets customers’ needs and expectations… that can rarely be achieved on a shoestring budget.
The Government must take measures to curb inflation and protect the purchasing power of its citizens. For those falling behind inflation, Government should provide subsidies or assistance to low-income or vulnerable groups who depend on taxis for their mobility and livelihood.
The cost of living, now fuelled by crippling interest rates for homeowners and borrowers, is biting most sections of community.
The growth of taxi and ride-hailing apps is expected to continue at an annual rate of 3.25%, with the user base projected to rise to 18.83 million users by 2027, says global taxi and mobility operator FREENOW.
FREENOW, a mobility ‘super app’, has seen this growth across its nine markets and 150 cities, with London standing out post-pandemic.
Mariusz Zabrocki, the UK General Manager of FREENOW, has been leading the business growth in the UK since 2019. In March 2023, FREENOW reported that the number of drivers had increased
by 30% from the previous year, with requests growing by 11% and passengers by 27%.
FREENOW's comprehensive range of transportation services, including ride-hailing, car rentals, e-scooters and more, is said to be contributing to the app's increasing popularity. The demand for more affordable and flexible transportation options has led to FREENOW's success in the competitive market.
TaxiPoint caught up with Mariusz to ask what the future holds for the industry and whether it can continue its growth trend.
The growth in taxi apps is a global phenomenon to which the UK is not an exception. The new generation of tech-savvy consumers who are used to everything at the touch of a button expects transport options to be available in the same way. While their grandparents and parents grew up hailing taxis on the street, the current generation of consumers is not used to and is not as keen to hail taxis on the street - they are the app generation.
Customers expect to be able to order a taxi when and where they want it. The ability to see when the car will arrive, the make and model of the vehicle and who the driver is gives customers comfort and reassurance. This focus on convenience is not going away –demand is going to grow as consumers continue to focus on travelling with ease and comfort. Taxi apps also provide customers with the opportunity to choose the car they want, whether that be an EV, a larger cab or a more comfortable ride. There is also an element of price transparency, with consumers able to see the price before they commit to the journey. This allows consumers to make an informed decision.
Consumers are also drawn to the sustainability aspect offered by mobility apps such as FREENOW. Our MaaS report showed that 91% of Europeans consider sustainable transport options as, if not more important, than before the energy crisis. This behavioural change is driving a shift to a combination of cabs, e-bikes, escooters and public transport, moving away from private car ownership, particularly in big cities such as London.
At the current trajectory, it can’t. The UK taxi industry, particularly in London, is losing more and more customers to PHV because, increasingly, they can’t get a black cab when they need it. Passengers love the new generation of black cabs and value knowledgeable drivers and access to bus lanes. However, there is no loyalty if there is no reliability.
The current situation is very concerning because the taxi industry plays a key role in society, assisting the public to move freely. According to Transport for London (TfL) data, there are now 19,356 taxi drivers in London, compared to over 22,000 pre-pandemic. At the moment, there are more drivers
addressed; otherwise, the industry is at risk.
In order to increase these numbers, an emphasis must be placed on attracting new people to the profession by highlighting the flexibility, financial and other rewards this career offers, but
“At the moment, there are more drivers retiring from the trade than entering it and this needs to be addressed; otherwise, the industry is at risk.”IMAGE CREDIT: FREENOW
most importantly, ensuring the process of becoming a taxi driver is not putting people off from joining this noble profession.
The Knowledge exam was introduced in 1865 and tests aspiring London black cab drivers on the name and location of every street and major landmark within 6-miles from Charing Cross and the best route to it. In the 70s, 80s and 90s, the challenging exam was typically completed within 18 months, and reports now show it takes 3-4 years. The Mayor of London recently revealed that 70% of students training to become licensed London taxi drivers do not complete the testing process. The Knowledge test should be adapted to reflect modern times and service requirements, making it more relevant and contained. That will substantially reduce the time of completion, engaging a new generation that can keep the trade alive.
Driver benefits are key at FREENOW, and we reward our drivers for their hard work. We also reward our customers for their loyalty to FREENOW. Partnerships like these allow us to do just that. We maximise earnings for our drivers while making sure we provide a quick, easy, and effective service for our customers or business partners.
FREENOW launched a partnership with Gett back in March. The goal of the collaboration was to provide Gett’s clients with access to the 20,000 private hire vehicles available on the FREENOW platform. In turn, the partnership also increased FREENOW’s drivers’ demand and earnings, while the collaboration added flexibility and reliability for Gett’s business riders.
Last November, FREENOW also announced a partnership with American Express to allow clients of FREENOW for Business to connect their accounts to their American Express Business Travel Account. The partnership is available in seven European countries, including the UK, alleviating the need for business travellers to manually upload taxi receipts, saving time and delivering greater expense management efficiencies.
We have got more partnerships planned for the future that will benefit our riders, drivers, and the
The UK ride-hailing market is expected to grow in the coming years, though much slower than before due to the cost of living crisis and overall maturity of the market. The simple yet effective mechanism of booking a cab through an app and having the power to choose when, where, how and what you pay to get somewhere has become the norm. However, how much of this growth, if anything, will be delivered by London black cabs depends on the reliability. If we don’t reverse the driver number trend soon, the black cab industry will fade into irrelevance over the next couple of decades and we as FREENOW are committed to do anything we can to prevent it from happening.
At FREENOW, our focus continues to be on working closely with drivers, offering them high earnings and other benefits such as support with transition to EV while continuing to offer consumers a service that they can rely on whenever they need and the widest choice of vehicles in one single app.
For many Hackney Carriage taxi drivers, the profession is not just a job, it's a long-term career and business. To get the most out of their profession, some serious business planning is required. TaxiPoint reached out to industry insiders to find out what cabbies should consider when it comes to their profession and how to get the most out of it.
We asked the readers for their thoughts and one element that was identified is understanding how many miles you plan to drive each year to better understand vehicle maintenance costs. This will allow drivers to plan for the next new vehicle investment. It was also suggested that drivers should decide what they want out of the career and set a plan to achieve their goals.
Another important aspect for drivers is to pay off their vehicle debts as soon as possible and keep the taxi for as long they can too. This will help drivers save for their next taxi at the back end of
licensing age limits. Working for oneself and generating their own work was also suggested to cut out the middleman and earn more. It is also beneficial to invest time and high levels of customer service for frequent taxi users, especially in more rural and less densely populated areas.
Drivers were also encouraged to work the hours and not just chase the next pound note. Finding all-year-round customers instead of only relying on airport transfers was also emphasised. Lastly, working with the local community of taxi drivers was identified as crucial. Helping each other in the community can create better longevity in the job.
For many cabbies, the profession is a long-term career and business. With careful planning and consideration, drivers can achieve their goals and maximise their financial rewards, which in turn delivers a better work life balance.
The average price of diesel continued dropping over the month of June, but at a much slower rate than the record cuts seen in May.
RAC Fuel Watch data shows diesel fuel pump prices fell 1p in June from 146.5p to 145.5p.
For cabbies driving petrol taxis, they saw pump prices stabilise and remain around the 143p mark. Officially prices rose half a penny from 143.26p to 143.86p.
A rising number of taxi licensing authorities are mandating the use of card payments, making it a condition of fitness to offer the modern-day service. However, as with anything involving technology, problems can occur. These could range from equipment faults, network coverage dropping or bad coverage.
Transport for London (TfL) were the first authority to introduce mandated card payment in the industry. As part of licensing requirements, all licensed taxis must be fitted with a TfL approved card payment device installed in the passenger compartment which has the facility to produce a printed receipt upon request by the passenger.
Backup or handheld payment devices do not meet the licensing requirements set by TfL and are considered unapproved devices. Any taxi found not complying with the requirement will be issued with an unfit notice, which will remain in place until the requirement is fulfilled and the vehicle is presented for inspection. A driver found to be using any unapproved device may also have their fitness to be licensed reviewed.
Despite the availability of safe low-cost card payment devices on the market and adopted by other industries, taxi drivers are not permitted to offer an alternative card payment device. Instead, when an issue arises, TfL asks drivers to ask the passenger to try their
payment card again. If the issue persists, the driver is then instructed to ask the passenger whether they have another payment card or cash to pay for the fare.
If not, the driver should offer to take the passenger to the nearest cashpoint. If a passenger refuses to pay and an amicable agreement cannot be found, drivers should then consider contacting the police.
This policy has come under intense scrutiny, with many in the industry asking why the regulator chooses how a self-employed worker should be receiving payment. Passengers want to see familiarity of device, but should the taxi driver not be allowed to offer a safer and more convenient alternative when problems arise?
Payment technology is moving fast. Can the taxi industry and authorities keep up with it?
In a bid to spur growth in the UK's taxi industry, many trade experts have put forward the suggestion of eliminating Value Added Tax (VAT) payments on electric Wheelchair Accessible Vehicle (WAV) taxis. This proposal aims to address the current cost disparity between electric and internal combustion engine vehicles, while also stimulating an increase in the number of licensed cabs and drivers on UK roads.
Under the existing tax regime, VAT amounts to 20% of a car's value, meaning that buyers of electric vehicles (EVs) pay a higher tax when opting for cleaner transportation. This has led to ongoing debates among taxi drivers, particularly those providing WAV services, regarding the fairness of VAT payments in their profession.
While VAT is typically applicable to all goods and services, there are exceptions for disabled individuals in specific circumstances. VAT relief is already available to those purchasing vehicles adapted to carry wheelchairs, provided the vehicle meets the criteria outlined by HM Revenue and Customs (HMRC). The relief applies to vehicles designed or substantially and permanently adapted to accommodate disabled wheelchair users, enabling them to travel comfortably and safely.
If this VAT relief were extended to taxi drivers offering WAV services, it could potentially result in savings
of over £10,000 on the purchase of new LEVC TX taxis, a popular choice among cabbies. This considerable reduction in costs would not only make the role of a taxi driver more appealing, but it would also facilitate the quicker integration of newer, environmentally friendly vehicles into taxi fleets across the country.
The potential advantages of this proposal are two-fold. Firstly, by alleviating the VAT burden on WAV taxis, it would incentivise taxi drivers to transition from traditional internal combustion engine vehicles to EVs, promoting a cleaner and more sustainable transportation system. The reduced operational costs of EVs, coupled with the tax relief, would make WAV taxis a financially viable option for drivers.
Secondly, an increase in the number of licensed EV taxis would enhance the availability and accessibility of transportation services for disabled passengers. With a greater presence of WAV taxis on the road, individuals with disabilities would enjoy improved mobility options, leading to enhanced inclusivity and convenience.
By reducing financial barriers and encouraging the adoption of electric WAV taxis, authorities could aim to achieve a greener transportation sector while ensuring equitable access to transportation services for disabled individuals.
The European Union is set to regulate tyre particulate emissions for the first time as part of its new Euro 7 standards proposal. The move comes as CO2 emissions rules drive the deployment of zeroemission vehicles.
The aim is to ensure that all vehicles on EU roads are much cleaner, including those emitting pollutants from their tailpipes. While by 2035 all cars and vans sold in the EU will have zero CO2 emissions, more than 20% of cars and vans and over half of heavier vehicles on the roads are expected to continue to emit pollutants in 2050.
Until now, tyre emissions, also known as particulate emissions, have not been part of the Euro vehicle standards. But under the new Euro 7 proposals, both tyre and brake particles will be measured, linked to respiratory issues.
The new standard rules are set to arrive in July 2024, and will be the first worldwide emission standards to regulate particulate emissions from
brakes and rules on microplastic emissions from tyres, for all vehicles including electric ones.
Tyre pollution legislation is also being contemplated in the United States, particularly in California.
ENSO tyres have already produced a tyre for the taxi industry that has been shown to reduce particulate matter emissions by up to 35% versus other tyres in the trial, a positive step toward cleaner air and the reduction of respiratory health problems.
There are other benefits to the more environmentally friendly tyre too. ENSO offers cab drivers best-in-class tyres, with the potential to extend the range of their electric taxi by as much as 10 percent.
ENSO tyres are also proven to significantly reduce tyre wear and improve the ride and handling, with better grip and reduced noise – all at a lower price than standard fit or replacement tyres.
As a taxi or private hire driver, you're not just navigating the roads; you're also navigating a maze of rules and regulations. Dealing with the Driver and Vehicle Licensing Agency (DVLA) is, unfortunately, a big part of this.
The DVLA requires you to keep them updated on certain changes in your circumstances. Failure to do so can result in substantial fines and even the loss of your licence.
In this article, we'll explore some of the key things you need to keep the DVLA updated about. First, we a look at changes to your vehicle and then changes in your personal circumstances.
As a professional driver, your vehicle is your livelihood. Any changes to it, therefore, are of utmost importance. Here are some key changes you must inform the DVLA about:
Vehicle Modifications: If you've made significant changes to your vehicle, such as altering the engine size or converting it to run on a
ability to drive professionally. Here are some changes you must inform the DVLA about:
Change of Address or Name: Whether you've moved house, changed your name, or even just got a new phone number, you need to let the DVLA know. If you fail to update your details, you could miss important reminders and end up with a fine of up to £1,000.
Licence: If you've passed your driving test, changed your vehicle category, or had any endorsements or penalty points added to your licence, you need to inform the DVLA. Failing to do so could result in a fine of up to £1,000.
Medical Conditions: Certain medical conditions can affect your ability to drive safely. If you've been diagnosed with a condition like epilepsy, diabetes, or any other condition that could impact your driving, it's your responsibility to inform the DVLA. If you don't, you could face a fine of up to £1,000, and you may be prosecuted if you're involved in an accident as a result.
As mentioned above, medical conditions are one of the most important things the DVLA need to know about. As it stands, there are 112 different conditions that the DVLA deem necessary to know about.
Below we’ll look at some of these in more detail:
Diabetes: If you're a driver and you have diabetes, it's important to manage your condition carefully to ensure you're safe on the road. If you're insulindependent, you must inform the DVLA.
Epilepsy: If you have had a seizure or epilepsy, you must stop driving and notify the DVLA. The regulations around when you can start driving again can vary, so it's important to check the specific guidelines.
Heart Conditions: Certain heart conditions can affect your ability to drive safely. For example, if you've had a heart attack or angina, you must inform the DVLA.
Sleep Apnea: This condition, which causes interrupted sleep, can lead to daytime sleepiness and can affect your ability to drive safely. If you have been diagnosed with sleep apnea, you must inform the DVLA.
Vision and Eye Conditions: Any condition that affects your eyesight, including glaucoma in both eyes, or total loss of sight in one eye, must be reported to the DVLA.
Mental Health Conditions: Conditions such as schizophrenia, depression, and anxiety can affect your ability to drive safely. If you have a mental health condition and it affects your driving, you must inform the DVLA.
Neurological Conditions: Conditions such as Parkinson's disease, motor neurone disease, or multiple sclerosis can affect your ability to control
a vehicle. If you have a neurological condition, you must inform the DVLA.
Stroke: If you've had a stroke, you must inform the DVLA. You may need to stop driving temporarily while you recover, and you may need to undergo an assessment before you can drive again.
Physical Disabilities: If you have a physical disability that could affect your ability to drive safely, you must inform the DVLA. This could include conditions that affect your limbs, movement, or coordination.
Dementia: If you have been diagnosed with dementia, you must inform the DVLA. Depending on the progression of the condition, you may need to stop driving.
As a taxi or private hire driver, you're not just a driver; you're a business owner, a confidant, and a vital part of your community.
Your passengers trust you to get them to their destination safely and efficiently. By keeping the DVLA updated, you're not only protecting yourself from potential fines but also ensuring that you can continue to serve your community to the best of your ability.
Uber is set to introduce full-length video ads across its ride-hailing app, food delivery service, Uber Eats, and alcohol sales platform, Drizly.
The announcement made in the Wall Street Journal is the latest development in the rise of retail media networks, whereby consumer -facing companies use their customer data to target messages for brands.
Uber’s active advertiser base grew by 80% year-over-year, according to CEO Dara Khosrowshahi. Most ads appeared on Uber Eats, where 345,000 merchants bought them in Q1 2023.
The video ad products have launched statewide in the US, before expanding to other markets throughout the year which includes the UK.
In a move aimed at helping taxi and private hire vehicle (PHV) drivers to source better working vehicles, Patons Taxis has officially launched a new website.
The platform has been designed to help both individual cab drivers and fleet owners to select vehicles that fit the requirements of the industry, including many environmentally friendly options.
HP Taxi, in partnership with new infrastructure company ZEVHub, have launched an exciting new taxi charging hub located centrally just off the Old Kent Road on Mandela Way. A huge site in South London has sprung up offering a charging hub of ten 30kWh charge points to cabbies. The charge points include both CSS and CHAdeMO sockets.
Merseyside private hire operator, Britannia Taxis, has joined forces with Veezu. The acquisition aims to open new horizons for Britannia, with hopes of elevating the private hire experience for its drivers and their passengers. Launched in 2013, Veezu has a history of growing its national footprint. The firm has continued to invest heavily in data, technology and infrastructure to ensure that regional private hire operators like Britannia Taxis remain ingrained within their communities.
Gett, a market leader in the UK black cab market, and Collective Benefits, a leading rewards provider for companies, announced a new partnership.
Through this partnership, drivers using the Gett app will be eligible for new perks such as discounts at major retailers across the UK.
Through the Collective Benefits Rewards Programme, qualifying drivers registered with Gett now have access to market-leading savings on a wide range of essentials including fuel from major UK brands, and food from Morrisons, Sainsbury’s, Asda and more. Plus, they can enjoy savings on lifestyle brands like Apple, Nike and Currys. The programme encourages loyalty, with drivers who complete a given number of rides per month using the Gett app becoming eligible for the rewards.
Guy Gaash, VP of Global Partnerships at Gett, said: “We’re delighted to be working with Collective Benefits to bring a new reward scheme to drivers using the Gett app. Black cab drivers are the cornerstone of city transport, and at the core of our business.”
FREENOW has teamed up with Revolut, the global financial super app with more than 30 million retail customers worldwide, to provide access to a series of benefits and rewards offered by Revolut Pro accounts to FREENOW’s drivers.
The partnership will provide FREENOW drivers with a Revolut Pro account, which offers:
• Up to 1.5% cashback on all Revolut Pro debit card purchases
• The ability to exchange money instantly in 36 currencies at competitive market rates
• Quick and convenient ways to accept payments via QR codes, payment links, and customisable invoices.
Drivers will receive a FREENOW x Revolut Pro debit card, as well as the option of virtual disposable cards, offering greater flexibility, convenience and rewards with spending. The partnership follows other benefits and support that FREENOW has launched for drivers, including an EV subsidy for new drivers of £4,000.
Addison Lee has announced its latest acquisition of Green Tomato Cars, a leading private hire vehicle (PHV) service known for its sustainability practices. This strategic partnership will reinforce Addison Lee's commitment to sustainability and help its customers achieve their net-zero targets.
Green Tomato Cars, a London-based company, has been at the forefront of the industry's sustainability efforts for the past decade. With their expertise and focus on eco-friendly transportation, they have successfully incorporated over 1,000 electric vehicles into their fleet. This aligns with Addison Lee's pledge in November 2021 to transition its standard fleet to electric vehicles.
This acquisition not only strengthens Addison Lee's position in the market, but also includes the integration of executive car providers, Brunel and Travelhire.
The investment follows Addison Lee's successful financial results for 2022 and their previous acquisition of ComCab London in July 2021. This previous acquisition allowed Addison Lee customers to access various services through a unified platform. With the addition of Green Tomato Cars, Addison Lee now operates a fleet of over 7,500 vehicles.
several administration costs that are required when setting up as a taxi driver in each UK city.
Start-up factors include the average cost of taxi insurance, initial cost of a DBS certificate, average cost of a taxi licensing fee (for three years) and the average cost of petrol per litre.
London tops the study as the most expensive UK city
The average annual cost of taxi insurance in London is £1,542 – which is the cheapest quote the experts found. A licensing fee for a taxi driver for three years in London is around £261.55.
Wakefield is the second most expensive city in the study, with a total start-up cost of around £1,828 and a cost of around £642 for a three-year taxi licensing fee. The average price of petrol per litre in Wakefield is £140.
In third place is Bradford, costing a total £1,714 to start up as a registered taxi driver. The cheapest taxi insurance quote found in Bradford for a taxi driver is £1,471, and a three-year licensing fee is £199.
The top ten is rounded out by Coventry, Edinburgh, Nottingham, Luton, Southampton, Manchester and
The cheapest UK city to become a taxi driver is Inverness in Scotland, with an average total start-up cost of around £853.
Hereford is also amongst the cheapest cities for setting up, with an annual taxi insurance cost of
Sten Saar, CEO of Zego, has commented on the research: “Today taxi drivers are an essential part of society, transporting members of the public daily.
“It is no surprise that London tops the study, being the capital city of the UK and even declared the fourth most expensive city in the world. The total average initial start-up for a taxi driver in London is around £1,856 – and that’s without purchasing a vehicle.
“Taxi insurance is a broad term that can be applied to insurance for private hire vehicles, black cabs and Uber drivers, and it is important a taxi driver knows which one is most suitable for them.
“Private hire insurance provides cover for licensed drivers who carry pre-booked passengers in return for payment. Private hire insurance is sometimes called taxi insurance, minibus insurance or PCO
insurance, specifically for people who drive passengers for a living.
“It is important to be aware that your standard motor insurance (known as social, domestic and pleasure), does not cover this type of business activity.
“Public liability insurance is also recommended for taxi drivers, as it provides protection for claims against the driver. Normally this is for circumstances such as if a passenger suffers a personal injury or damage to their property while either in, entering or leaving the taxi. In this case it will cover you against any legal or compensation claims.
"In recent times, taxi drivers have felt the brunt of inflation across the UK, therefore will are looking for ways to reduce their outgoings – and there are several ways to do so.”
The release of Best Practice Guidance for taxi and private hire vehicle licensing authorities in England will arrive later this year.
Vicky Foxcroft MP, the Shadow Minister for Work and Pensions, queried the Secretary of State for Transport about the publication of the Government's response to the Best Practice Guidance for taxi and private hire vehicle licensing authorities in England consultation.
During a parliamentary written questions session, Richard Holden MP and minister for Department for Transport (DfT) confirmed that the Government's response to the consultation is scheduled to be published later this year.
The consultation, which sought input from industry stakeholders and the public, aimed to address common concerns surrounding the licensing process for taxi and private hire vehicles. It focused
Taxi and private hire vehicle licensing authorities play a vital role in regulating and overseeing the operation of these services, including issues such as driver background checks, vehicle safety standards, and driver training requirements. The Best Practice Guidance serves as a reference for these authorities, assisting them in making informed decisions and maintaining consistent standards across the country.
Richard Holden MP, Department for Transport (DfT), said: “The Department intends to publish the Government's response to the consultation on updated Best Practice Guidance for taxi and private hire vehicle licensing authorities in England later this year.”
London’s transport regulators have said time may have run out on its original consultation conducted over five years ago, which focused on the return of advanced driving tests for taxi and private hire vehicle (PHV) drivers.
Transport for London (TfL) undertook a consultation between 26 March and 25 June 2018 entitled ‘Improving Safety in Private Hire Vehicles’ and this included a proposal for an enhanced driving test for PHV drivers.
Five years have now elapsed since the regulator initially undertook the ‘Improving Safety in Private Hire Vehicles’ consultation, and there have been a significant number of changes in that time. TfL have said that they ‘would need to consider whether further consultation would be required’ if they decided to bring forward any of the proposals considered in the original consultation.
Since 2018 there been significant licensing milestones. This includes the creation of the Task and Finish Group on taxi and PHV licensing, commissioned by the Department for Transport (DfT). Many of the recommendations within the report aligned with the proposals set out in TfL’s consultation forcing a pause.
On 12 February 2019, the DfT launched a consultation containing a range of proposals for Statutory Taxi and Private Hire Vehicle Standards. This consultation closed on 22 April 2019 and contained a wide range of proposals, some of which were similar to the proposals within the
consultation TfL conducted in 2018. London s transport regulator responded to the DfT’s consultation and continued to pause the work on its own consultation, until they knew the outcome of the DfT review.
In early 2020, in response to the global COVID-19 Pandemic and national lockdown restrictions, TfL was required to focus on critical licensing activities, primarily maintaining periods of continuous licensing for existing licensees and dealing with safety-critical intelligence. No work was undertaken on the consultation during this time.
In July 2020, the DfT published Statutory Taxi and Private Hire Vehicle Standards, a number of which superseded the proposals in the Improving Safety consultation.
Between 28 March and 20 June 2022 the DfT undertook a consultation on Taxi and Private Hire Vehicle Best Practice Guidance. TfL anticipate the updated guidance will be published soon and consideration given to the guidance.
A growing number of London taxi drivers are being pulled up and fined for 4D number plates as police ANPR struggles to read registration number.
In recent months, the use of 4D number plates on cars has sparked confusion among motorists and raised concerns within law enforcement agencies. While possessing 4D plates is not explicitly illegal, individuals who opt for these flashy accessories have found themselves entangled in enforcement troubles due to readability issues.
According to current regulations, it is not against the law to have raised letters on a number plate.
However, problems arise when these letters are raised to such an extent that they become difficult, or even impossible, to read from certain angles. This lack of readability infringes upon the legal requirement that number plates should be easily decipherable by authorities and other road users.
Lloyd Baldwin, Executive S.O at Licensed Taxi Drivers’ Association (LTDA), said: “I have been called by three members this week, who have all been pulled over by the Police and issued with £100 fixed penalty notices.”
Transport for London (TfL), the regulatory body overseeing the city’s transport network, has revealed that over 1,000 Private Hire Vehicles (PHVs) are exempt from displaying their licensing disc – also known as a ‘Roundel’ – as part of a recent Freedom of Information request.
Out of 89,058 PHVs active under TfL’s oversight, 1,192 of them have been granted exemptions from displaying the licensing disc. TfL generally considers the exceptional circumstances, nature of work to be carried out, and security of passengers when granting exemptions.
The most common reason given for these exemptions is the ‘unique nature of the business’, calling into question what sort of work is being carried out by these PHVs.
registered with TfL, only two have been granted exemptions from wearing their driver’s badge, meeting exemption criteria that have not been disclosed by TfL.
These exemptions have raised concerns regarding the regulation of the PHV industry, with some critics questioning how TfL enforces and monitors these exemptions to ensure passenger safety and maintain transparency.
The Rotherham Council Cabinet has approved plans to hold a public consultation on proposed changes to the Hackney Carriage (taxi) and Private Hire Licensing Policy. The consultation aims to ensure that licensed drivers, vehicles and operators working in the borough continue to be of the highest standard.
The proposed changes include focusing on "out of town" vehicles and sub-contracting of fares, vehicle age and emissions, offences added to the list of convictions that exclude drivers, vehicle testing, driver application process, and vehicle signs.
The Hackney Carriage and Private Hire Licensing Policy was introduced by the Council in 2015 and is regarded by some as the benchmark for other local authorities.
Public drop-in sessions will be held across the borough where people can get more information and talk about the proposed changes. A survey will also be posted to the Council website when the consultation goes live.
The consultation is set to open in July and will run for 12 weeks. Responses will be used to create changes to the policy, which will then go back to Cabinet for approval.
Merthyr Tydfil Council’s Licensing Department is receiving information that unlicensed drivers are continuing to operate illegal ‘taxis’ across the region.
Cllr Michelle Symonds, Cabinet Member for Regeneration, Housing and Public Protection, said: “Last year, we issued a warning to members of the public about the dangers of travelling in unlicensed vehiclesand although the problem has improved, there are still people flouting the rules.
“The purpose of taxi licensing is to protect the public, and we would like to remind residents and visitors of the risks of getting into these vehicles. Drivers have direct responsibility for the safety of passengers and significant control over passengers – passengers who may be alone and/or vulnerable.
“Customers travelling in these vehicles are putting themselves at risk and we urge members of the public to use only licensed vehicles and drivers.”
COUNCIL CONCERNED AFTER RECEIVING REPORTS OF UNLICENSED ILLEGAL ‘TAXIS’ OPERATING IN MERTHYR TYDFIL
Bracknell Forest Council is considering abolishing the local knowledge test for taxi drivers as some councillors say it is no longer necessary with the widespread use of satellite navigation systems. The current requirement means that drivers of all cabs and private hire cars must pass a knowledge test before the council can issue them a licence. Black cab drivers also need to pass a verbal test on specific routes in the borough based on map work. However, the council's licensing committee is set to discuss these requirements and determine whether to abolish it.
Some Hackney Carriage drivers in Bracknell support retaining the knowledge test as it
ensures that drivers are familiar with local routes, which can be invaluable during heavy traffic. The council could vote to scrap the test, retain it, or launch a consultation before making the final decision in October.
If the proposed changes are adopted, drivers would be allowed to rely on satellite navigation systems alone. According to Bracknell News, taxi driver Asghar Ali, said: “They shouldn’t get rid of the knowledge test because if you don’t have a knowledge of the area, that will be a problem for the resident and a problem for the drivers as well.”
Stevenage Borough Council has announced that they are to seek public consultation on whether or not to increase taxi fares in the area by 10%.
The proposals come as part of the council's annual review of taxi fares and tariffs, and there are three options available to choose from.
One option would be to increase only the mileage, while keeping the initial fare at £3.60 and increasing Tariffs 1, 2, and 3 by 10%.
The second option would be to increase the initial fare by 20 pence, from £3.60 to £3.80, and increase the tariffs as well by 10%.
The third option is to freeze the fares and tariffs at their current rates.
The council has stated that all additional and soiling charges will remain unchanged, with the maximum allowable additional charge being £2.00. The maximum soiling charge will remain at £50 for any reason.
Residents of Stevenage are encouraged to take part in the consultation and voice their opinions on the proposed changes to taxi fares. The new tariff system is slated to take effect from 20 July 2023, subject to the final decision of the council after the consultation process is completed.
BLACK CAB KNOWLEDGE COULD BE
BRACKNELL DUE
Taxi fares in Helensburgh and across Argyll and Bute are set to remain the same, after proposals for an increase failed to gather enough support from operators and the public.
A letter was sent to all taxi operators in the area asking for their views on potential fare increases, with a questionnaire also issued to engage with operators on the performance of the Licensing Section.
However, just 18 responses were received from the taxi industry, and only one member of the public expressed support for fares freezing, citing current fares as unaffordable. As a result of the limited response, Mid Argyll SNP Councillor Jan Brown proposed that fares be frozen, commenting that “most people who did respond wanted fares left as they were anyway”. The proposal will now be advertised, and responses invited before the committee next meets on 23 August.
Taxi drivers in Newcastle have protested against plans to rebrand the city's hackney carriages in black and white, claiming that the changes will cause "huge burden" for them.
The plans require licensed taxis to fit a white wrap around their bonnets, matching the colours of Newcastle United. City council leaders argue that the new colour scheme will make it easier to recognise licensed taxis and help crack down on crime.
However, according to Chronicle Live, more than 40 drivers staged a demonstration outside the local authority HQ ahead of a Newcastle City Council meeting, calling for the idea to be dropped.
They argue that the cost of fitting the white wraps will be too high, and that it will be difficult to maintain and clean the white surfaces.
Newcastle City Council's nearly 600 licensed hackney carriages will be all black but with distinguishable white bonnets. The vehicles will also need to display red Council crests on the front doors and have a taxi sign on the roof that is white at the front and red at the rear.
‘HUGE BURDEN’: NEWCASTLE TAXI DRIVERS
Sussex Roads Police, the DVSA, and the RPU carried out taxi and private hire vehicle (PHV) safety checks in Brighton on 17 June 2023. A total of 43 vehicles were stopped, and a number of offences were dealt with.
Some of the offences included:
• Bald tyres
• Faulty seatbelts
• Not wearing seatbelts
• Too many passengers
• Using a mobile phone while driving
• 4 prohibited vehicles.
All of the vehicles were made safe roadside. The checks were carried out as part of a wider campaign to improve road safety in Brighton.
A Sussex Roads Police spokesperson said via social media: “Commercial Vehicle Unit, DVSA & RPU carried out taxi safety checks in Brighton and stopped 43 vehicles. Offences dealt with included bald tyres, faulty seatbelt, not wearing belts, too many passengers, mobile phone and 4 prohibited. All made safe roadside.”
Council’s licensing team and Humberside Police saw 11 random roadside spot check inspections on local taxis in Cleethorpes on Friday 9 June.
A council licensing officer checked all drivers and the general conditions of the vehicles, while Humberside Police checked DVLA licences, insurances, tyres, lights and vehicle tax. The enforcement evening found the following issues:
• One taxi was immediately suspended for not displaying the vehicle licence plate.
• One driver was advised to remove the tint from their vehicle’s windows.
• One driver was given a warning with regards to his manner of driving.
• One driver was found without an ID Badge.
• One vehicle had the incorrect registration number plate (the vehicle was not an electric vehicle).
• One vehicle was very unclean and had incorrect carpets in the footwell.
Drivers were spoken to and the issues will be monitored until they are resolved. The suspension on the taxi has now been lifted and the issue has been resolved.
revoked after refusing to carry an assistance dog for a blind passenger.
When issuing licences, the council makes it very clear that it is a legal obligation to carry assistance animals - and officers will be using the case to continue educating other drivers.
Ramesh Mahesan had his appeal against an original decision to revoke his licence dismissed after he failed to attend a hearing at Dudley Magistrates' Court. He was also ordered to pay costs of more than £900.
The council investigated after a complaint was made by the victim stating that Mahesan arrived at the requested location, spotted the assistance dog and immediately left.
After leaving, the driver cancelled the trip. The booking was assigned to a new driver and the victim was able to travel home safely.
This was confirmed by the passenger’s personal assistant who was travelling with them and the assistance dog.
Mahesan’s legal representative denied the complaint and stated that the driver had “looked after dogs before” and “is very aware of the importance of taking guide dogs”.
magistrates in April 2023.
In 2021, the council took similar action against a Wolverhampton driver who refused to carry a customer with an assistance dog from Molineux Stadium. Officers will be using both the examples when educating other drivers.
Councillor Craig Collingswood, cabinet member for city environment and climate change, said:
“Leaving a vulnerable passenger on the side of the road is inexcusable.
“When licensing drivers, it is made very clear from the outset that it is a legal obligation to carry assistance animals at no extra cost.
“As a council, we strive to ensure the best possible service for anybody who uses one of our licensed vehicles and this scenario was deeply upsetting to us.
“Due to the serious nature of the complaint, we no longer consider Mr Mahesan to be a fit and proper person to hold a licence to drive a private hire vehicle.
“Every passenger should feel safe and respected when using taxis or private hire vehicles and we believe that Mr Mahesan did not display the high standard of service that is expected from our drivers.”
