DfT Publishes Latest Taxi and Private Hire Statistics

16 Aug

Last month the Department for Transport (DfT) published their annual Taxi and private hire vehicle statistics. This release is collated from submissions from licensing authorities around the country to shed light on the current state of the industry.

The UK’s taxi and private hire vehicle (PHV) sector has seen significant shifts over the past few years. The lingering effects of the COVID-19 pandemic and other broader social changes continue to have an impact.

Surge in Private Hire Licences and Decline in Taxi Numbers

As of April 2024, the total number of driver licenses (taxi and PHV combined) saw a 10% year-on-year increase, reaching 381,100. This figure is highest number of licences ever issued in the country, surpassing 2019s pre-pandemic numbers by nearly 20,000.

This increase has been largely driven driven largely by a substantial 13.6% rise in PHV drivers. However, taxi driver numbers have declined by 7.4%, highlighting a shifting dynamic within the industry where PHVs continue to dominate.

    
    
            Licence Type
            Drivers
            Percentage of Total
            Year-on-Year % Change
        

    
            Total
            381,100
            100%
            +10%
        

            Private Hire
            262,959
            69%
            +13.6%
        

            Taxi
            34,299
            9%
            -7.4%
        

            Dual
            76,220
            20%
            +7%
        

            Both Licences
            7,622
            2%
            +26%
        

The growth in PHV drivers reflects the increasing role of app-based ride-hailing services and the demand for flexible, pre-booked transport options. This sector's rise has outpaced the traditional taxi market, leading to a steady decline in taxi licenses.

The dual licensing, which allows drivers to operate both taxis and PHVs, also saw a modest increase of 7%, further underscoring the shift towards more versatile operations in the sector.

However, despite the appearance that PH is experiencing a boom, in 2019 they made up 76% of the number of licences, so their overall market share has actually dropped 7% in the past 5 years.

Regional Disparities: The Wolverhampton Effect

The biggest individual increase regionally will come as no surprise to anyone in the industry.

The West Midlands saw a remarkable 26.5% increase in licenses issued, but this figure is heavily skewed by Wolverhampton City Council, which has become a licensing hub for drivers operating across England.

The cross-border licensing phenomenon means that while drivers may hold Wolverhampton licenses, they often work in other regions, including major cities like Manchester, Newcastle, Leeds and Liverpool.

Excluding the West Midlands, the North East saw the most significant percentage increase in licenses at 16.8%, followed by the North West at 10.5%.

This pattern highlights the broader national trend of PHV growth, with drivers seeking opportunities in urban areas where demand for services is highest.

The table below shows the regional numbers in 2023/2024 and the change in numbers.


Region	2023	2024	Increase (%)	Increase (#)
North East	12,711	14,844	16.79%	2,133
North West	42,450	46,893	10.5%	4,443
Yorkshire and Humber	28,294	31,031	9.68%	2,737
East Midlands	16,511	18,479	11.92%	1,968
West Midlands	53,318	67,429	26.47%	14,111
East of England	22,915	24,610	7.40%	1,695
South East	33,495	36,329	8.50%	2,834
South West	16,849	17,841	5.89%	992
Wales	10,789	11,249	4.26%	460
London	119,800	123,600	3.17%	3,800

Recovery from the Pandemic

The impact of the COVID-19 pandemic on the taxi and PHV industry has been profound, with sharp declines in activity during 2020 and 2021. However, the data suggests a slow but steady recovery.

The average number of trips taken per person per year is now at 8, up from 7 in 2021, but still below the pre-pandemic average of 9 to 12 trips annually. If current trends continue, the industry is likely to return to pre-pandemic levels within the next 24 months.

Shifting Towards Environmentally Friendly Vehicles

The adoption of hybrid and electric vehicles is on the rise, driven by both regulatory changes and market demand.

By April 2024, 44% of PHVs were hybrid vehicles, and 8.8% were battery electric, marking a significant increase from previous years. Meanwhile, diesel vehicles, which once dominated the sector, are becoming less common, particularly in urban areas like London, where stricter emissions regulations are in place.

While the adoption of hybrid vehicles has been strong the move to EVs faces issues. Looking at the preliminary responses to our National Taxi and Private Hire Driver Survey, most drivers do not feel that the infrastructure is in place for drivers to confidently switch to fully electric vehicles.

Accessibility and Safeguarding

Accessibility remains a critical issue in the sector, with 11.5% of all licensed vehicles being wheelchair accessible in 2024. However, there are significant regional differences, with urban areas generally offering better accessibility options than rural regions. London leads the way, with all of its taxis being wheelchair accessible, as mandated by Transport for London.

Safeguarding policies have also seen improvements, with 96% of licensing authorities now requiring taxi and PHV drivers to undergo child sexual exploitation (CSE) and county lines training. Additionally, enhanced DBS checks are mandatory across all authorities, ensuring that passenger safety remains a top priority.

The National Taxi and Private Hire Driver Survey

While the official statistics provide a snapshot of driver numbers and similar information, they do not reflect the attitude and issues currently facing the industry.

The taxi and PHV industry in England is undergoing a huge period of transformation. The lasting impact of the pandemic alongside the rise of app-based services, sustainability concerns, and regional disparities are all contributing to one of the most volatile periods in the industry’s history.

The National Taxi and Private Hire Driver Survey, launched in partnership with TaxiPoint aims to give important context to these figures. By providing a large-scale neutral industry survey, we hope to contribute meaningful information that could influence a positive future for drivers across the UK

The survey will be running for around 10 weeks, with the final date for submissions being the 15th of September 2024. To take part in the survey, click here or copy the URL below into your browser:

https://www.taxiplus.co.uk/national-taxi-ph-driver-survey

For more information about the survey, click here.

James Parkinson