Could a TfL medallion system offer better long-term security for London’s black cab trade and get new drivers behind the wheel?
- Perry Richardson
- 4 days ago
- 3 min read
A medallion system could offer the London taxi trade a practical way to secure its future as autonomous vehicles loom closer on the horizon.
The city’s licensed taxi drivers face a key transition. With driverless technology rapidly advancing, pressure is building to find a workable model that protects both long-serving drivers and the future structure of the trade in the short-term. One solution is the introduction of a medallion-style licensing model.
Under this system, drivers would earn a stake in their medallion each year they remain licensed. After 10 years of continuous service, the medallion would be fully owned. In the years ahead, medallions could be leased or sold, particularly to autonomous vehicle operators, giving current drivers a direct financial stake in the next phase of the industry whenever that transition occurs.
The plan draws from similar systems already used in global cities like New York, where medallions are capped and carry asset value. In London, Transport for London (TfL) would retain full control by issuing a limited number of taxi medallions, helping to regulate fleet size and reduce congestion.
TfL could raise revenue through the initial sale of medallions and by taking a percentage from each future transaction. That creates an incentive for TfL to support the scheme while keeping the system within regulatory reach.
A capped permit model also prepares the trade for automation. When driverless taxis begin operating, the industry will need a way to manage access. Medallion ownership offers a natural bridge, allowing drivers to lease their permits or partner with tech firms rather than being pushed out or pushing against licensing changes.
Alongside this, the Knowledge of London continues to face recruitment problems. Interest from new candidates is falling, creating concern about the pipeline of future drivers. By offering a clear reward for long-term investment in the trade, the medallion model could increase appeal for the short-term. Candidates would no longer just gain the right to drive a cab — they would be working toward a tangible asset.
Backed by a broader support measures for the short-term within the Mayor’s Action Plan recently released, the medallion concept could form part of a modernisation strategy.
With clear benefits to drivers, regulators and future market entrants, the medallion approach looks to tick all the boxes and would allow for a frictionless restructure of London’s taxi licensing before automation arrives — not after.
How does the New York medallion system work in the Taxi industry and how much are they worth at the moment?
In New York City, the taxi medallion system is a regulatory framework which was established in 1937 to control the number of taxis operating on the streets. Under this system, the city issues a limited number of medallions—official permits affixed to taxi hoods—that grant the right to operate a yellow cab and pick up passengers via street hails. The New York City Taxi and Limousine Commission (TLC) oversees the issuing and transfer of these medallions. Medallions can be owned by individual drivers or by companies and are transferable assets, often bought and sold in a secondary market. The scarcity of medallions has historically led to significant valuations, turning them into substantial investments for owners.
The value of taxi medallions has experienced considerable fluctuations over the past decades. In the early 2000s, medallion prices were around $200,000 to $300,000. By 2013, due to high demand and limited supply, prices peaked at over $1 million. However, the emergence of ride-sharing services like Uber and Lyft introduced increased competition, leading to a sharp decline in medallion values. By 2018, medallion prices had fallen to between $200,000 and $300,000. As of 2025, specific current values are not readily available, but the market is seen to have stabilised in recent years.
