TfL generates over £23m from taxi and private hire licensing in last financial year

Transport for London (TfL) has revealed it made over £23 million in revenue through taxi and private hire licensing in the 2023/2024 financial year. The data, obtained via a Freedom of Information request, highlighted the financial significance of the sector to TfL's operations.

Between April 2023 and March 2024, TfL issued nearly 130,000 licences, which included 2,992 for taxi drivers, 30,636 for private hire drivers, and 95,029 for private hire vehicles.

Each category generates fees for both the application and grant of the licence. Taxi drivers pay £120 to apply and £180 when granted a licence. Private hire drivers face slightly higher costs, with a £124 application fee and £186 for the grant of the licence. Private hire vehicle licences bring in £84 for the application and £56 for the grant.

The revenue generated from taxi driver licences totalled £897,600, while private hire drivers brought in a significantly larger £9.5 million. The bulk of the revenue came from private hire vehicles, which accounted for £13.3 million.

These figures, however, do not represent the full scope of revenue from TfL’s licensing functions, as additional income from taxi vehicle licences and private hire operator licences was not included in the FOI disclosure.

TfL has clarified that these licensing fees are not for profit. The income is used solely to cover the costs of administering the licences, along with the compliance and enforcement measures necessary to regulate the industry. TfL emphasised that the revenue is reinvested into the system, aiming to support and improve services for both licensees and passengers across the capital.