Radical action on private hire licensing is needed to combat the “steep decline” in the amount of taxi drivers operating in the capital, the London Assembly Transport Committee has said.
Elly Baker, the Labour Assembly Member who chairs the group, said the "advent of app-based operators" - such as Uber, Bolt and Free Now - has "irreversibly changed the landscape" for cab drivers in London.
There are now over 106,000 private hire drivers licensed by TfL to work in London, she said, causing "extreme competition for fares". This, in turn, has led to drivers working longer days, prompting additional concerns over passenger and driver safety.
In a letter today (Monday, October 6) to the Transport Secretary, Ms Baker repeated the Committee's calls for a cap on private hire licenses and said they "cannot see the reasoning behind continuing to resist this call, which has wide support across taxi and private hire drivers".
In addition to this, private hire drivers who are licensed outside of London but work predominantly in the capital have exacerbated the density of drivers. However, Ms Baker said ministers have not addressed this issue "urgently" enough, instead kicking the can further down the road.
"There are too many private hire vehicles doing too few trips, adding to congestion and pushing down driver pay," she said. "As drivers work longer hours to make up their pay, this leads to driver fatigue and raises questions around road safety.
"London is often seen as world-leading when it comes to transport systems. Yet, if we continue to lack the regulatory powers other cities have, we risk attracting bad actors who can exploit drivers and jeopardise the safety of Londoners."
In contrast, the number of licensed taxis in London fell from 22,810 in 2014 to 14,800 in 2024.
This is down to the barrier to entry proving too expensive for anyone wishing to enter the industry, with cab costs increasing by at least £23,000 in the last eight years and the cheapest vehicle being £70,000. To combat this, the Committee recommended an extension of the £7,500 plug-in taxi grant for drivers buying eligible, low-emission vehicles and exempt taxis from VAT by the end of this year.
In a separate letter to TfL, Ms Baker called on the transport body to set a specific target to increase the number of London's iconic black cab drivers, suggesting their Taxi and Private Hire Action Plan, launched in March, does not go far enough in addressing the crisis.
She said: "It is time that TfL gets serious about protecting this industry, drivers, and all the Londoners who rely on taxis and minicabs to get around - starting with a cap on private hire vehicle numbers."
Trevor Merralls, General Secretary of the United Cabbies Group (UCG) who has driven a London taxi for over 20 years, said the proposals were just a starting point and must go further to rescue the industry.
He told the Local Democracy Reporting Service (LDRS): "Having seen this letter to the Transport Secretary, our expectations were very low before we began - and we remain disappointed.
"There's nothing in it for taxi drivers, it's all about private hire. They've said nothing about giving us road access to pick up disabled passengers. They've said nothing about how technology has blurred the lines and allowed private hire to operate as a ghost taxi fleet.
"We've always had taxis and private hire but since technology came along, private hire is now immediate - they operate like taxis. It's meant to be pre-booked. Prior to this, there was 50,000 private hire drivers in London - there are now more than double that. This has been at the taxis' expense.
"All our rights have been eroded. We have an expensive vehicle and our fares are set by TfL - private hire drivers can buy a cheaper vehicle and charge whatever they want, but we are treated the same.
"The law hasn't kept pace with the technology - that's obvious. We never had these problems before the apps. Less taxi drivers in London is now inevitable.
"London has the best taxi drivers in the world, the highest standards - but if we want that to continue, we cannot work in the same way as private hire."
Helen Chapman, TfL's Director of Licensing and Regulation, said: "London's taxi trade and private hire industry are crucial to the success of the capital's transport network. We welcome the recommendations from the Transport Committee and we will be responding to the committee in due course.
"The actions set out in the recent Taxi and Private Hire Action Plan are built on wide-ranging engagement with stakeholders, including the taxi trade, private hire industry, local councils, and passenger groups. The plan will enable us to attract taxi drivers from all backgrounds, ensure the safety of passengers and drivers, maintain consistently high standards, and continue to reduce the environmental impact of taxis and private hire vehicles.
“We remain fully committed to working with everyone to ensure that London has safe, accessible, and green taxi and private hire services, recognised across the world."
