Why is dual taxi licensing outpacing Hackney Carriage taxi licences in England?
The taxi and private hire vehicle (PHV) industry in England has seen a marked shift towards dual licensing throughout the years. As of April 2024, 20% of all licensed drivers in England hold dual licences, compared to just 9% operating with hackney carriage-only licences. This trend highlights the preference in some regions among drivers for the flexibility and earning potential dual licensing offers. But what are the factors driving this disparity?
Dual licensing provides drivers with one very significant advantage: the ability to operate both as a hackney carriage or as a private hire vehicle driver. This flexibility allows them to tap into two distinct markets—accepting street hails and rank hires as taxis, and pre-booked journeys as PHVs, when demand allows.
Hackney carriage-only licences often brings more costly vehicles and more regulation. Some argue that the ability to pivot between the two services gives dual-licensed drivers a competitive edge. If a driver’s hackney carriage is being repaired or there are no licensed taxis available to rent, the driver can opt to drive a private hire vehicle as part of their licence to keep on the road and earning.
The structure of passenger demand also plays a key role. PHVs dominate the market in terms of fleet size , accounting for 69% of all licensed drivers. This arguably reflects passenger demand, with many opting for app-based booking services. Dual licensing allows drivers to participate in this sector while retaining the ability to operate as a taxi when demand returns.
Local authorities set the rules for hackney carriages, including fare controls, vehicle requirements, and even caps on the number of taxi vehicle licences issued. These factors can impact finding a hackney carriage to drive.
In urban areas, where street hails and taxi ranks are more common, hackney carriage drivers can often find consistent work. However, in suburban or rural settings, where these opportunities are scarce, the ability to switch between licensed vehicles is seen as advantageous in some areas to keep on top of running costs.
