TAXI FARE TRANSPARENCY: Time to reveal to customers how the fare is split between taxi driver and platform?
- Perry Richardson
- Apr 9
- 3 min read
The way taxi fares are split between drivers, operators and ride-hailing platforms is rarely made clear to passengers. In many cases, customers assume the fare they pay goes directly to the driver, with little or no understanding of the commission charges, booking fees or surge pricing mechanisms involved. As taxi apps play an increasingly dominant role in the transport sector, is now the time to ask whether greater transparency is needed—particularly when it comes to the commission fees that impact all parties.
It’s not just your typical ride-hail names like Uber or Bolt that operate on commission-based models, where a percentage of the fare is retained by the platform. Taxi booking apps like FREENOW and Gett also operate similarly. Looking at black cabs apps, these rates typically range from 18% to 20%, depending on the provider and circumstances. But in real-world journeys, drivers often receive significantly less than the total paid by the passenger due to additional charges layered on top.
Let's run through this possible scenario of a peak-time booking made on a black cab app. A £10 metered fare can become an £18 charge for the passenger once a £2 booking fee and a £6 high demand pricing supplement are added. Of that total, the driver might end up with just over £11—around 62% of the fare. The remainder, nearly £7, is kept by the platform in the form of booking fees, surge pricing income and commission. Without full disclosure, customers are unaware of this distribution and may wrongly believe the driver pockets nearly the entire sum.
This lack of clarity has led some trade groups to call for better regulation that would enforce pricing and transparency across the board. Proposals might include showing customers a full breakdown of their fare on receipts, including how much the driver earned, what the platform took in commission, and any additional charges applied. Supporters say this would create a more informed market and help correct public misconceptions around taxi pricing.
Passenger trust is also seen as a key benefit of greater transparency. With some viewing taxi apps as unregulated or unfair, providing clear financial information could help restore credibility to the industry. There is also the argument that transparency promotes fairness by helping drivers and passengers alike understand where their money goes.
However, there are notable reasons why full transparency may not suit all parties. One concern is commercial sensitivity. Operators may be hesitant to publicly reveal how much they charge drivers or profit from fares. Competitors could use this information to their advantage, potentially disrupting the market. Commission rates, booking fees and surge pricing strategies often vary between platforms, and firms may wish to keep such details confidential.
Drivers themselves may also take differing views. While some support transparency to build public awareness, others may see it as an unnecessary intrusion on their own personal earnings.
Additionally, there is the challenge of explaining complex pricing structures to the average customer. Fares often include dynamic elements—such as discounts, bonuses or corporate billing—that are not easy to summarise in a single receipt. This could lead to confusion rather than clarity if not handled carefully.
From a regulatory standpoint, the debate centres on whether consumer understanding and driver fairness justify new requirements. As ride-hail taxi apps continue to grow, the demand for transparency is unlikely to fade.
