TAXI DRIVER RESPONSE: Report recommendations largely echoed by trade for years, but THREE big omissions remain
Updated: 11 hours ago
While a new paper focusing on the future of the London black taxi trade— published by Centre for London and funded by FREENOW — was seen to be more aligned with industry concerns than previous ‘think tank’ publications, some drivers say it still avoids THREE critical challenges facing the trade.
The report includes 13 recommendations, largely discussed and supported by most in the industry for years, designed to halt the trade’s decline and encourage driver recruitment, focusing on financial incentives, regulatory reform, and better data sharing. Many of these proposals have been welcomed by drivers, with several echoing long-standing calls from the industry.
But some believe the report stops short of confronting a few important topics. According to cabbies and industry voices, three issues stand out for their absence: unchecked private hire vehicle (PHV) licensing, legal uncertainty around plying for hire, and the long-term threat of automation.
PHV Growth Remains the Unspoken Obstacle
Arguably the biggest elephant in the room is the surge in private hire vehicles operating across London. As of 2024, there were more than 107,000 PHV drivers licensed by TfL, a figure that continues to rise. In contrast, the number of licensed taxis has dropped to around 14,500 — down from over 22,000 a decade ago.
Cabbies say the sheer volume of PHVs on the road has saturated the market and devalued their work. Any meaningful recovery, they argue, is contingent on a cap being introduced on PHV numbers. That recommendation is missing from the report.
“There’s no point talking about growth in the taxi sector if work is still being swallowed up by a runaway private hire market,” said one driver to TaxiPoint. “The balance isn’t there — and until it is, the trade won’t attract new blood.”
Capping PHVs has long been contentious, but with White Paper Devolution powers being discussed that could give mayor’s of major cities more licensing powers and flexibility, could capping be a more realistic prospect in the future?
Plying for Hire: A Legal Grey Area
Another issue the report avoids is the erosion of the taxi trade’s core right — to be hailed in the street or picked up from ranks. Traditionally, this has been the legal distinction between taxis and PHVs. But the arrival of ride-hailing apps blurred that line, allowing passengers to book cars at the tap of a screen, often with just seconds’ notice.
There remains no clear legal definition of what constitutes a pre-booked journey versus an electronic hail. This has created a grey area that TfL and the courts have largely avoided addressing, despite repeated calls from the trade to clarify the law.
Drivers argue that without a clear legal boundary, the taxi’s unique selling point is compromised — and so is the incentive to invest years into the Knowledge. “Why study for three or four years to get a badge, when PHV drivers are picking up from the kerb via apps with no enforcement?” one veteran London cabbie asked.
The Silent Risk of Automation
The third concern is further down the road — but no less urgent. Driverless vehicle technology continues to develop, and many believe it will eventually reach London’s streets one day. The Centre for London report makes no mention of automation, yet its potential to reshape the industry is significant.
The mere possibility of autonomous taxis is already influencing decision-making. Prospective applicants are questioning whether the Knowledge represents a worthwhile investment if the trade could be disrupted — or replaced — in the medium to long term.
Industry voices have been calling for regulators to begin offering clarity on how licensing and regulation will evolve in an automated environment. Will traditional drivers be prioritised? Will there be any safeguards? None of that is addressed in the paper, leaving yet another gap in strategic planning for the trade’s future.
Positive Steps, But Gaps Remain
To the report’s credit, it does make most of the practical suggestions. Interest-free loans for new vehicles, extension of the Plug-In Taxi Grant, and a faster Knowledge that retains the gold standard of licensing, are all sensible measures. It also calls for Black Cabs to be better integrated into London’s wider transport policy and for clearer recognition of their role.
However, these steps — while all welcomed and needed — still don’t go far enough for some drivers. The omission of PHV caps, legal clarity on e-hail work, and a strategy on automation risks rendering the report only partly-complete.
TfL is expected to release its updated Taxi and Private Hire Action Plan very soon and is likely to determine the direction of the industry for the next decade.
The Centre for London report could help support that future — but other gaps will likely need to be addressed too.
