How private hire over-supply impacts London’s black taxi services and why a cap is becoming increasingly vital
- Perry Richardson
- 2 days ago
- 2 min read
The London black taxi industry is under growing strain due to the sharp rise in private hire vehicles (PHVs) operating on app-based platforms such as Uber and Bolt. Over 100,000 PHV drivers are now licensed to operate in the capital, raising concerns about the long-term sustainability of the black cab trade.
Grant Davis, chairman of the London Cab Drivers Club, recently called attention to the issue, arguing that the oversupply of PHVs is contributing to the shrinking number of licensed taxi drivers and damaging the sector’s future. Despite the introduction of a new Action Plan by Transport for London (TfL) and the Mayor of London aimed at supporting black cabs, key concerns — including over-saturation — were absent from the strategy.
The problem is twofold. With so many PHVs on the road, competition for bookings is intense. This allows platforms to keep fare prices low, confident that drivers will accept jobs to maintain income levels. In turn, drivers are pushed to work longer hours to make ends meet. While this benefits customer service with wider coverage and shorter wait times, it comes at the cost of driver fatigue and financial insecurity.
For black taxi drivers, who rely on street hails and immediate hire, the presence of tens of thousands of PHVs disrupts their unique market position. Increased congestion, driven by the growing PHV fleet, further compounds the issue. One of the black cab’s main selling points — direct and efficient travel — is undermined when streets are now consistently gridlocked.
Many in the industry believe legislative change is now essential. Under current law, local authorities are unable to cap the number of PHVs operating in their area. However, proposals linked to regional devolution may give city mayors more scope to introduce local regulations and vehicle limits. Another approach could involve tightening licensing criteria to curb applications and reduce vehicle numbers over time.
Cross-border hiring — where drivers licensed in one area operate in another — is also muddying efforts to control local supply. Both black taxi and PHV sectors could benefit from reform that tackles this loophole while allowing for controlled and balanced growth.
Unless the volume of vehicles is addressed through targeted regulation, congestion and industry pressures will only increase. A balanced, long-term plan is needed to maintain a viable transport mix on the capital’s roads.
