London Assembly calls for cap on private hire licences amid concerns over driver safety and industry decline

The London Assembly Transport Committee has issued a renewed call for the UK government to grant Transport for London (TfL) powers to cap the number of private hire vehicle (PHV) licences issued in the capital.

The appeal comes amid growing concerns over the impact of app-based ride-hailing services such as Uber, Bolt, and Free Now on traditional taxi services, driver welfare, and road safety.

According to the committee, London now has more than 106,000 private hire drivers licensed by TfL, a figure that has surged in recent years due to the proliferation of digital platforms. This influx has led to intense competition for fares, forcing many drivers to work excessively long hours—sometimes up to 16 hours a day—to earn a sustainable income. The committee warns that such conditions contribute to driver fatigue, posing risks to both passengers and other road users.

Elly Baker, chair of the Transport Committee and Labour Assembly Member, stated that the rise of app-based operators has “irreversibly changed the landscape” for cab drivers in London. She emphasised that the current regulatory framework is inadequate and urged the government to act swiftly. In a letter to the Transport Secretary, Baker criticised the delay in addressing cross-border licensing issues, where drivers registered outside London operate predominantly within the city, further exacerbating congestion and fare competition.

The committee also highlighted the sharp decline in the number of licensed black cabs, which fell from 22,810 in 2014 to 14,800 in 2024. This drop is attributed to rising entry costs, with the cheapest compliant taxi now priced at around £70,000—an increase of £23,000 over the past eight years. To support the traditional taxi sector, the committee recommends extending the £7,500 plug-in taxi grant and exempting taxis from VAT by the end of 2025.

In addition to licensing reforms, the committee is advocating for mandatory data-sharing requirements for private hire operators. These would include information on journey patterns, driver activity, fare structures, and algorithmic pricing. Such measures aim to improve transparency and allow TfL to monitor business practices more effectively.

The App Drivers and Couriers Union (ADCU) has backed the committee’s proposals, particularly the push for data-sharing and safe working hours. ADCU president Cristina-Georgiana Ioanitescu stressed the need for protections that would enable drivers to operate safely and earn a reasonable living.

The London Assembly has also criticised TfL’s Taxi and Private Hire Action Plan, launched in March, as insufficient. Baker urged TfL to set specific targets to increase the number of black cab drivers and to take more decisive action to protect the industry.