London’s taxi driver and black cab numbers fall again – can the industry recover?
The number of licensed taxis and drivers in London continues to decline, raising serious concerns about the future of the trade. Latest figures from Transport for London (TfL) show a further drop, with more drivers leaving the industry and fewer new entrants replacing them.
As of the week ending 2 February 2025, the number of licensed taxi drivers fell to 16,847—a decrease of 26 compared to the previous week. No new taxi driver licences were issued. The number of licensed taxis also declined by nine, bringing the total to 14,501, with just six new vehicle licences granted.
In contrast, the private hire sector continues to expand. While private hire driver numbers fell slightly by 58 to 107,921, TfL issued 247 new licences. Private hire vehicle licences increased by 154 to reach 96,671, with 339 new vehicles added in just one week.
The widening gap between the taxi and private hire sectors is a growing concern. While taxi numbers dwindle, private hire services continue to attract new drivers and vehicles at a much faster rate. The Mayor of London has acknowledged the urgency of the situation and is preparing a Taxi Action Plan aimed at reversing the decline.
What Is the Taxi Action Plan?
The taxi industry are hoping the Mayor’s Taxi Action Plan will focus on three key areas: increasing the number of new taxi drivers, making taxi ownership more financially viable, and improving access to the road network.
One of the biggest challenges facing the industry is the length of time it takes to become a licensed taxi driver. Completing the Knowledge of London, which requires years of intensive study and examination, remains a significant barrier to entry. The plan is likely to include proposals to streamline the process without lowering standards, possibly by introducing additional support for applicants or reviewing assessment methods to speed up training without compromising the depth of knowledge required.
Financial barriers are another issue. The cost of purchasing and licensing a new taxi has risen sharply in recent years, driven in part by the requirement for electric vehicles. While the transition to greener taxis is widely supported, many drivers struggle with the cost of replacing their diesel vehicles. The Mayor’s plan could include incentives to help drivers afford new electric taxis.
Calls for Better Road Access and Rank Space
Another major concern for taxi drivers is restricted access to key routes. Road closures, bus lane restrictions, and low-traffic neighbourhoods have made it harder for taxis to navigate the city efficiently. Driver representatives are urging the Mayor to reassess these policies and restore full access for licensed taxis.
Taxi fleet owners and driver groups have also called for improvements to rank space and pick-up points, particularly in busy areas such as major transport hubs and tourist destinations. They argue that increasing the number of designated ranks and ensuring taxis have priority access at key locations would make the service more attractive to both new drivers and passengers.
Some in the industry are also pushing for a public awareness campaign to highlight the benefits of licensed taxis, including their safety, reliability, and environmental credentials.
Can the Decline Be Reversed?
The effectiveness of the Taxi Action Plan will depend on the level of support the Mayor is willing to offer. While industry representatives welcome intervention, they currently remain cautious about whether it will go far enough to address the root causes of the decline.
With driver numbers falling and the private hire sector continuing to grow, the pressure is on to secure the future of the taxi trade in London. The coming months will be critical in determining whether these measures can bring about real change or if the decline will continue.
