Government rejects idea of ‘subsidies’ for taxi drivers amidst rise of alternative service providers

Government has rejected the idea of ‘subsidies’ for black cab drivers amidst MP’s concern for rise of alternative taxi providers.

In a recent written parliamentary exchange, Andrew Rosindell, Member of Parliament (MP) for Romford, posed a question to the Secretary of State for Transport regarding potential subsidies for traditional black cab drivers in light of the expanding presence of alternative taxi service providers.

Rosindell's inquiry is believed to reflect concerns among traditional black cab drivers, who have been grappling with ongoing market changes and saturation caused by app-based ride-hailing services like Uber and Bolt. These alternative providers, which utilise private hire vehicles have enjoyed a surge in popularity over recent years, leading to a decline in market share for traditional cab drivers across the UK.

The availability of subsidies for black cab drivers had been seen by some as a potential solution to address the challenges faced by traditional taxi drivers, who argue that they are subject to stricter regulations and more expensive wheelchair accessible vehicles compared to their counterparts in the ride-hailing industry. In some regions their remains concerns about the long-term viability of the taxi if measures are not taken to level the playing field.

However, Guy Opperman, a Department for Transport minister, responded by stating that the Government currently has no intention to implement such subsidies.

Rosindell MP, asked the Secretary of State for Transport, whether he has ‘made an assessment of the potential merits of providing subsidies for traditional black cab drivers in the context of the growth of alternative taxi service providers’.

Opperman MP replied: “The Government has no plans to provide subsidies in this area.”