London’s iconic black cab industry continues to face considerable challenges, as recent data reveals a steady decline in both driver and vehicle numbers throughout 2025. Licensed taxi drivers totaled 16,290 as of October 19, representing a decrease of 68 drivers from the previous week. This decline reflects a broader trend, with driver numbers falling to 16,847 by February 2, marking a sharp reduction from the 22,500 drivers recorded in 2015.
Vehicle licenses have followed a similar downward trajectory, with 14,028 licensed taxis recorded in mid-October, down 32 vehicles from the prior week. While the industry has made progress toward sustainability, with Zero Emission Capable taxis reaching 9,197, the overall fleet continues to shrink. The decline in vehicle numbers is particularly concerning as only 10 new licences were issued during the reporting period. By early February, public-hire vehicles numbered 14,501, considerably fewer than five years ago.
In stark contrast, private hire services have experienced substantial growth. Private hire driver numbers reached 105,302 in October, increasing by 104 from the previous week alone. The private hire sector has expanded by 55% since 2015, rising from 62,700 vehicles to over 97,000, creating intense competition for traditional taxis. Despite TFL actively advertising tube services, they have been criticized for neglecting Hackney Carriages while simultaneously restricting their access to key roads. Newly qualified private hire drivers typically earn between £22,000 – £28,000 annually, significantly less than experienced black cab drivers.
Financial pressures compound these challenges. Full-time London taxi drivers earn between £1,730 and £3,460 monthly, with average annual salaries of approximately £33,000. After accounting for expenses, net hourly earnings range from £11 to £17, making it increasingly difficult to attract new entrants to the profession. High vehicle costs, particularly for electric models that can reach £100,000 including interest, further strain drivers’ finances.
Industry stakeholders have proposed several support measures to address these issues. These include fast-track Knowledge training programs, VAT relief on electric taxis, expanded vehicle manufacturer choices, guaranteed road access for taxis, and financial assistance to help compete with private hire platforms.
With applications to sit the Knowledge exam showing a slight increase despite the 38% pass rate, there remains hope that targeted intervention could help preserve this historic London profession.
