Why are more people choosing to become private hire drivers over taxi drivers?

In recent years, there has been a noticeable shift in the transport sector, with an increasing number of individuals opting to become private hire vehicle (PHV) drivers over traditional hackney carriage taxi drivers.

Several factors contribute to this trend, highlighting the evolving dynamics of both industries. Here we look at a few of the main ones that can impact a potential applicant's decision.

Lower Entry Barriers

One of the most significant factors driving this shift is the lower entry barriers associated with becoming a PHV driver. The requirements for obtaining a PHV licence are generally less stringent than those for a hackney carriage licence. For instance, many areas have reduced the necessity for extensive knowledge tests, focusing more on simple background checks. This makes it quicker and less costly for individuals to enter the PHV market, making it an attractive option for those looking to start driving as soon as possible.

Increased Demand and 24/7 Earnings Potential

The rise of ride-hailing apps such as Uber and Bolt has changed the way people book and use private hire services. These platforms have created a constant demand for PHV drivers, especially in peak times and busy urban areas. The dynamic pricing models used by these apps can lead to higher fares during periods of high demand, such as weekends and holidays too. While the earning potential may not be as high as a taxi driver, given there is no middle man that takes a cut in the taxi industry, the ease of earning something to supplement other work has made PHV driving a more appealing proposition for many.

Technology Integration

The integration of technology in the PHV sector has streamlined the process of finding and transporting passengers. GPS navigation, automated payment systems, and customer rating systems provide a smooth operational experience for drivers. These technological advancements reduce the need for local area knowledge and make it easier for drivers to apply for a licence and go. This approach offers a simpler way to operate compared to the traditional methods employed by hackney carriage drivers whereby a greater level of knowledge is required.

Lower Costs and Vehicle Flexibility

The costs associated with becoming a PHV driver can be far lower than those for hackney carriage drivers. PHV vehicle requirements are typically less costly, and there is greater flexibility regarding the type of vehicle that can be used. Many PHV drivers can use everyday vehicles, which reduces the initial investment needed to start driving. In contrast, hackney carriage drivers often need to invest in purpose-built vehicles that meet specific standards, which can represent a significant financial commitment.