In recent years, England and Wales’s private hire vehicle (PHV) sector has experienced significant changes, with the number of drivers steadily increasing. The latest taxi and private hire vehicle statistics for England and Wales reveal fascinating insights into these trends, highlighting both the growth in private hire driver numbers and some ongoing concerns, particularly in London.
A Closer Look at the Numbers: Growth in Private Hire Drivers
The latest taxi and PHV licensing trends in England for 2024 indicate a marked rise in the number of private hire drivers, consistent with trends seen in previous years.
Chart 1: Total licensed taxi and private hire vehicles and drivers: England, since 2005 – TAXI0102
Despite a dip during the pandemic, the number of private hire vehicles has rebounded to levels seen before the outbreak, signalling a robust recovery. The appeal of flexible working hours and the low barriers to entry provided by app-based ride-hailing services like Uber and Bolt continue to attract new drivers to the industry.
This growth is particularly noticeable outside London, where private hire vehicles have expanded their presence.
Chart 2: Licensed taxi vehicle numbers in London, and England and Wales outside of London, from 1972 – TAXI0101
Regions that previously had limited transport options now benefit from the increased availability of private hire services, offering consumers more choice and convenience. This trend is reflected in the PHV statistics, which show a more widespread distribution of licenses across England, indicating that private hire vehicles are becoming a staple of transportation even in smaller towns and rural areas.
London: A Different Story
While the overall trend is one of growth, London presents a contrasting picture. Once a hub of taxi and private hire activity, the capital has seen a steady decline in licensed black cabs (BCs). This trend has raised concerns among industry stakeholders as the number of traditional taxis on London’s streets continues to dwindle.
Chart 3: Licensed vehicles by type and area: England, since 2005 – TAXI0101
As at 1 April 2024:
- there were 56,400 licensed taxis, a 1.4% decrease from 2023
- licensed taxis in London fell by 2.1% compared to 2023
- licensed taxis in England outside of London fell by 1.1% compared to 2023
- there were 256,600 licensed PHVs, a 10.5% increase from 2023
Several factors contribute to this decline. The rise of private hire vehicles has certainly played a role, as has the increasing preference for app-based ride-hailing services. Additionally, stringent emissions regulations and the financial pressures of maintaining a black cab in a competitive market have led many drivers to either retire or switch to private hire vehicles, often seen as a more viable option.
This decline is not just a matter of nostalgia; it has practical implications for London’s transport infrastructure. Black cabs have long been valued for their knowledge of the city, ability to navigate complex routes, and wheelchair accessibility. As their numbers dwindle, there are growing concerns about how well these needs will be met in the future.
Post-Pandemic Rebound and Insurance Considerations
The private hire vehicle sector was not immune to the impacts of the COVID-19 pandemic. During the lockdowns, demand for all forms of transport plummeted, leading to a temporary decline in the number of licensed drivers. However, as restrictions lifted and the economy began to recover, so too did the private hire industry. Today, the number of private hire vehicles is again on the rise, approaching pre-pandemic levels.
For the insurance sector, these trends present both challenges and opportunities. The increase in private hire drivers means there is a growing market for insurance products tailored to their specific needs. However, the competitive nature of the industry, particularly with the continued decline of black cabs in London, could lead to economic pressures on drivers, making it crucial for insurance brokers to offer flexible and affordable policies.
Education also plays a critical role here. Many new drivers entering the market may not fully understand the risks of inadequate insurance coverage, especially in a highly regulated environment like London. Insurance brokers like Plan have a crucial role in helping these drivers navigate the complexities of insurance, ensuring they have the right coverage to protect themselves, their passengers, and their vehicles.
Plan Insurance can provide bespoke taxi insurance quotes for all UK drivers. Just fill in our short online questionnaire, and our professional brokers will be in contact to arrange your insurance.
Accessibility and the Future of Transport
Another significant concern highlighted in the latest taxi and private hire vehicle statistics is the issue of accessibility. While private hire vehicles have made strides in becoming more available across the country, there is still a need for more accessible vehicles, particularly for wheelchair users. This area is where traditional black cabs have historically excelled, and their decline raises questions about how these needs will be met moving forward.
Map 1: Proportion of licensed vehicles that were wheelchair accessible in 2024 by licensing authority, England – TAXI0104
For private hire drivers, investing in accessible vehicles can not only open up new customer bases but also align with broader societal goals of inclusivity and equality. Insurers, too, can support this shift by offering incentives for drivers who invest in accessible vehicles or undergo specialised training to serve passengers with mobility needs better.
Looking Forward: The Road Ahead
As we move further into 2024, England and Wales’s private hire vehicle sector is clearly on an upward trajectory. However, the steady decline of black cabs in London remains a concern that warrants close attention. The continued growth of private hire vehicles outside the capital and the post-pandemic rebound present opportunities and challenges for drivers, insurers, and policymakers alike.
At Plan Insurance Brokers we understand the unique needs of taxi and private hire drivers. By offering tailored insurance products and fostering education around coverage requirements, we aim to play an important role in supporting safety standards and levels of professionalism within the taxi and private hire sectors.
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