MAKING AND SAVING MONEY: Why do some black cabs carry advertising?
Black cabs are an iconic part of the UK’s transport network, instantly recognisable on the streets of London and other major cities. Their distinctive shape, constant movement, and visibility in prime locations make them valuable advertising space. It’s common to see taxis wrapped in full livery or carrying ads on their doors, but why do so many black cab drivers and fleet owners opt for this?
The answer is simple: advertising either helps drivers make money or save money.
Reducing Rental Costs
Many black cabs available for rental come with advertising already in place. These vehicles are often part of large fleets owned by rental companies, which use advertising revenue to subsidise rental fees. This means drivers who lease their taxis can benefit from lower weekly costs, making it easier to manage expenses.
Fleet owners, on the other hand, gain an extra source of income. With hundreds of taxis covering thousands of miles every month in high-traffic areas, their advertising space is highly valuable to brands. This arrangement benefits both the fleet owner and the driver, helping keep rental rates competitive while generating additional revenue.
Extra Income for Self-Employed Drivers
Not all drivers rent their taxis. Many own or finance their vehicles, giving them full control over whether they display advertising. For these drivers, ad placements provide an opportunity to earn additional income. Agencies that specialise in taxi advertising work with brands to place ads on cabs, paying drivers for the use of their vehicles.
On average, a taxi driver can earn around £2,000 per year from advertising. In many cases, this is enough to cover the cost of annual insurance, easing one of the biggest expenses drivers face. Given the financial pressures in the industry, it’s a simple way to improve cash flow without affecting daily work.
Lowering Commission Fees
Some advertising deals don’t involve direct payments but instead offer financial savings. Taxi booking platforms and ride-hailing services often encourage drivers to display their branding in exchange for lower commission rates.
For example, one booking app’s On Car Advertising (OCA) allows drivers to save 6% on commission fees. In addition, drivers who carry these ads are often prioritised when jobs are allocated through the app, increasing their chances of securing more fares. This type of arrangement can be particularly beneficial for those who rely on app bookings to fill their working hours.
Supporting Charities
Not all advertising is commercial. Some black cab drivers use their vehicles to promote charities and industry causes. By donating their advertising space, they help raise awareness for organisations that might not have the budget for large-scale campaigns. It’s a way for taxi drivers to give back to the community while continuing with their daily work.
