Decline of an Icon: Key points from the London Assembly Transport Committee
Last Tuesday (January 23, 2024), the Transport Committee of the London Assembly held a meeting focusing on the future of London's taxi and private hire vehicle (PHV) industry.
Multiple industry stakeholders were invited to share their views and discuss the key issues in the sector right now. Key participants included:
Helen Chapman, Director of Licensing, Regulation and Charging, TfL
Christina Calderato, Director of Transport Strategy and Policy, TfL
Steve McNamara, General Secretary, Licensed Taxi Drivers Association
Mariusz Zabrocki, General Manager, Free Now
Steve Wright MBE, Chair, Licensed Private Hire Car Association
Asher Moses, Founder and Chief Executive Officer, Sherbet The Electric Taxi Company
Unsurprisingly, the main focus of discussion was the decline of the capital's iconic Black cabs.
The Declining Numbers of London's Black Cabs
In recent years, London has witnessed a significant decrease in the number of black cab drivers. The numbers have dropped from 22,200 in 2013 to just 15,100 in 2023, a trend that has raised concerns among industry stakeholders.
Several reasons have been put forward over the past 12 months as to why cab numbers are declining. The Knowledge, the transition to EVs, and the general stress of the job. The main factor underpinning all of them is ultimately cost.
The Knowledge has always been a significant investment for prospective drivers, costing several thousand and normally around 2 years of study. With many people across the country still reeling financially from the pandemic, and the cost of living climbing, this cost has been prohibitive for many. A recent uptick in Knowledge registrants has been attributed to large advertising campaigns and the subsidy offered by FREE NOW.
But these initiatives can’t last forever, and whilst they are clearly effective, the other issues remain a price obstacle for new drivers. With TfL’s commitment for all taxis and PHVs to be zero-emissions capable by 2030, many are being priced out by the rapidly increasing costs of EVs. This is further compounded by the strict vehicle requirements for Black cabs.
Interesting figures were raised by Asher Moses, founder & CEO of Sherbet the Electric Taxi Company. Moses pointed out that there are currently 5000 fully licensed taxi drivers in London now without access to a taxi to drive. Simply because they cannot afford to rent or buy an EV cab.
The uncertainty around whether the Plug-in Taxi Grant (PiTG) will be extended past April 2024, was also raised. Steve McNamara pointed out that for more drivers to make the move, there needs to be a commitment to this grant being extended. If it does expire in April, it seems likely that it will have a problematic impact on the taxi industry.
But while the taxi side of the industry seems to be declining, PHVs are experiencing a boom. Private Hire Vehicles (PHVs) have seen a substantial increase, with licenses rising from 49,900 to 89,600 in the same period.
Issues with the Licensing Policy
One of the most pressing issues was TfL's licensing policy, particularly the controversial 'six points and you’re out' rule. This has caused alarm and concern amongst drivers. Steve McNamara of the Licensed Taxi Drivers Association expressed this frustration to the committee, pointing out the harsh impact of this policy on drivers: "Taxi drivers risk having their licence revoked for just six penalty points, which seems excessively punitive compared to other transport sectors."
There does seem to be some misinformation about this point on social media. Many wrongly believe that if drivers accrue 6 points, they will immediately have their licence revoked. This is not the case. There are 4 specific cases where 6 points will elicit a revocation or suspension:
For an offence of driving without due care and consideration, resulting in six or more penalty points on your licence, TfL could revoke your licence. Even if you receive less than six points, TfL can still suspend your licence for three months.
For failing to stop/fail to report an accident, for which you receive six or more penalty points, TfL could revoke your licence. For less than six points on your licence, you could receive a three-month suspension.
If you’re found guilty of using a hand-held mobile phone or a hand-held device, and receive six penalty points on your licence, TfL could revoke your taxi licence.
For any other single driving offence that results in six or more penalty points, your taxi licence can be revoked.
From a public perspective, these seem to be reasonable causes for a professional driver to have their licence revoked. All of the above offences are serious, and in some cases, life-threatening for other road users. As it is TfL’s responsibility to safeguard the public, these are proportionate rules.
In normal circumstances, under the new rules, drivers will receive a warning when they accrue 9 points, stating that accrual of any more points could lead to them losing their licence. But drivers can still accumulate 12 points like a normal driver before losing their licence entirely.
Several of the invited representatives made it clear that they believed the licensing policy needed to be overhauled to be clearer and fairer for drivers. Steve Wright MBE from the Licensed Private Hire Car Association (LPHCA) emphasized the need for balanced regulations that consider both the industry's growth and the drivers' welfare.
While the committee itself didn’t provide any real indication to how issues will be resolved, it was good to see everyone involved talking with such passion for the industry. There’s a reason cities across the globe envy the London taxi trade. The professionalism and expertise available is unparallelled. This is why it is so important that the decline of the industry is addressed with care and urgency.
You can watch the full assembly meeting via YouTube, here.