London taxi industry awaits Mayor’s ‘Action Plan’ as decline in numbers continues into another year
The latest figures from Transport for London (TfL) have revealed the continued sharp divide in the fortunes of the private hire and taxi sectors as the capital transitions into 2025.
Private hire continues to see significant growth, while the traditional taxi industry faces an ongoing decline, raising questions about its long-term sustainability for another year.
For the week ending Sunday 22 December 2024, TfL data shows that private hire driver licences increased to 107,447, up by 115 compared to the previous week. Vehicle licences in the sector also saw a steady rise, growing by 100 to 96,147.
In stark contrast, the taxi trade’s figures underline its continued struggles. Taxi driver licences dropped by 14, bringing the total to 16,913. New taxi driver licences are becoming increasingly rare, with just three issued during the reported week. The number of licensed taxi vehicles showed a welcomed slight increase of 25, bringing the total to 14,531.
A Widening Gap
The figures highlight the growing dominance of private hire vehicles in London’s transport landscape. Conversely, the taxi trade is grappling with a host of challenges, from stringent knowledge testing requirements to higher operating costs for drivers adopting cleaner vehicles.
Recognising the challenges facing the taxi industry, TfL and the Mayor of London are set to introduce an ambitious ‘Action Plan’ aimed at reversing the decline. Taxi drivers are hoping for a new strategy that centres on making the trade more accessible to both new drivers and passengers, while also adapting to the capital’s environmental goals.
Key measures in the plan might include improving access to ranks and roads, particularly in high-demand areas such as major transport hubs, tourist hotspots, and key suburban locations. To address the dwindling number of taxi drivers, TfL has also been reviewing the licensing process, aiming to make it potentially more streamlined without compromising standards. This includes the application process for The Knowledge, a rigorous test of London’s streets and landmarks that has long been a hallmark of the trade but is increasingly viewed as a barrier to entry.
Focus on Sustainability
Sustainability is likely to be another pillar of the Action Plan. Since January 2018 TfL have pushed for the adoption of electric taxis. However, the cost of electric taxis remains a significant hurdle for many drivers, with the current funding unlikely to cover the full transition.
Industry insiders argue that more radical action may be needed to stabilise the taxi trade. Suggestions have included bigger vehicle grants and introducing policies to cap private hire vehicle numbers to rebalance demand.
The start of 2025 finds the two sectors at very different crossroads. Private hire is poised for further growth, driven by its flexibly and ease of licensing. The taxi trade, however, faces an uphill battle if changes are not made in a rapidly changing market.
The success of TfL’s Action Plan will be crucial in determining whether London’s iconic black cabs can regain their footing or whether the decline will accelerate.
