FREENOW increases commission fees on taxi fares to 18% starting February 2024

Image credit: FREENOW

FREENOW have announced an increase in its commission rate to 18% (including VAT) on metered black taxi fares as from 5 February 2024.

This move represents an average increase of £0.60 per job for taxi drivers using the FREENOW app.

FREENOW sources indicate that this adjustment in commission is a strategic step towards ensuring the company's sustainable growth and reinvestment in the business.

Emphasising the importance of technological advancements, the enhancement of their app, introduction of new services, and marketing efforts, FREENOW aims to enhance the experience for both drivers and passengers. The company stresses its commitment to promoting its taxi offerings, ensuring that drivers receive more job opportunities through the app.

FREENOW were keen to outline its continued dedication to providing unique benefits to drivers on its platform. These benefits range from accident and sickness insurance to parental leave. Furthermore, the company has initiated an industry-first program to financially assist drivers in completing the Knowledge of London, highlighting its focus on empowering taxi drivers and supporting the overall trade.

Among the initiatives designed to assist drivers partnered with FREENOW are:

• Improved on-car advertisement benefits: Drivers who enroll in the upgraded on-car advertising program will enjoy a reduced commission rate. For instance, in London, the commission will be only 12% (10% plus VAT) for drivers who participate in this program.

• FREENOW Loyalty program: This program offers taxi drivers exclusive perks, such as priority in job offers and early access to pre-booked jobs.

• FREENOW will introduce several bonuses linked to trip-related activities, including high-demand bonuses

• Support for transitioning to Electric Vehicles (EVs): The company is committed to providing financial aid (up to £2,000) to drivers who switch to electric vehicles.

• Comprehensive Driver Benefits: These include Accident & Sickness Insurance, Compassionate & Parental leave, and discounts on food and fuel.

While any commission increase will concern cabbies working on the app, FREENOW’s decision is part of its broader strategy to reinvest in the industry and enhance its services. By introducing a range of supportive measures and incentives, the company aims to mitigate the impact of the commission increase on drivers and maintain its position within the taxi industry.