Politicians have voiced concerns that London is facing an oversupply of private hire vehicles relative to their trip numbers, exacerbating traffic congestion and driving down driver earnings. According to the London Assembly’s transport committee, the number of black cab drivers has decreased by one-third over the past decade.

Elly Baker, a Labour member of the Assembly who leads the committee, noted that the rise of taxi app services has created “intense competition for fares,” necessitating significant action from both the government and Transport for London (TfL).

TfL emphasized that both the taxi sector and the private hire industry are vital to the overall effectiveness of the city’s transportation system, while the government acknowledged the situation and is exploring various solutions.

The Local Democracy Reporting Service revealed that more than 106,000 private hire drivers are licensed by TfL in London, not counting those licensed in other areas who primarily operate in the capital.

Baker criticized the ministers for their lack of urgency in tackling these issues. She remarked, “As drivers extend their hours to supplement their income, this results in fatigue and raises serious concerns regarding road safety.”

She added, “London is often regarded as a benchmark for advanced transport systems. However, without the regulatory authority that other cities possess, we run the risk of attracting unscrupulous operators who may exploit drivers and endanger the safety of London’s residents.”

In light of these challenges, Baker has reached out to the transport secretary to propose limiting the number of private hire licenses issued.

The count of licensed black cabs in London has plummeted from 22,810 in 2014 to an expected 14,800 by 2024.

In another correspondence with TfL, Baker urged the transport authority to establish a concrete goal for increasing the number of “iconic” black cab drivers, claiming their recently launched Taxi and Private Hire Action Plan does not adequately address the critical issues.

Baker stressed, “It’s crucial that TfL takes substantial measures to safeguard this industry, its drivers, and the countless Londoners who depend on taxis and minicabs for transportation—beginning with imposing limits on private hire vehicle licenses.”

The committee reported that the cost of acquiring a black cab has surged by at least £23,000 over the last eight years, with the least expensive model now costing around £70,000.

Trevor Merralls, secretary of the United Cabbies Group (UCG), stated that technological advancements have “obscured the distinction” between taxi services and private hire vehicles, allowing the latter to function like an unregulated taxi service.

He commented to the Local Democracy Reporting Service, “While taxis and private hire vehicles have coexisted, the emergence of technology has made private hire services available instantly—something that should have been pre-booked.”

He highlighted that the number of private hire drivers in London has skyrocketed from 50,000 to over double that figure, impacting the taxi industry adversely.

“Our rights have been diminished. We operate under the conditions of expensive vehicles with regulated fares set by TfL, while private hire drivers can opt for cheaper vehicles and set their own rates, yet we are treated equivalently.”

Helen Chapman, TfL’s director of Licensing and Regulation, noted that their Taxi and Private Hire Action Plan was developed after extensive consultation with stakeholders, including members of the taxi and private hire sectors, local councils, and passenger advocacy groups.

She concluded, “The plan aims to attract taxi drivers from diverse backgrounds, ensure safety for both passengers and drivers, uphold high standards, and minimize the environmental footprint of taxis and private hire vehicles. We remain dedicated to collaborating with all parties to guarantee that London boasts safe, accessible, and eco-friendly taxi and private hire services recognized globally.”

The Department for Transport has reported that it has allocated £70 million in grants to assist taxi drivers in transitioning to electric vehicles. A spokesperson explained, “Even after the grant period ends, electric vehicles can be significantly cheaper to operate than petrol ones, costing up to eight times less per mile.”

They acknowledged the concerns surrounding the existing legislative and regulatory landscape, particularly regarding cross-border hiring, and affirmed that all options are being assessed to achieve optimal safety outcomes for passengers.