‘A COMMERCIAL MATTER’: Government rules out regulating dynamic pricing in private hire vehicle sector
- Perry Richardson
- 1 minute ago
- 2 min read
The Government has ruled out regulating dynamic pricing in the private hire vehicle sector, saying fare structures remain a commercial decision for operators and that passengers are already protected through advance booking requirements.
The position was set out by Parliamentary Under-Secretary of State for Transport Lilian Greenwood in a written response to a parliamentary question from Reform UK MP Andrew Rosindell, who asked whether ministers planned to regulate dynamic pricing structures within the private hire vehicle industry.
Rosindell, the MP for Romford, raised the issue amid growing concern among passengers and drivers about fluctuating fares linked to demand-based pricing models used by app-based operators. His question asked the Secretary of State for Transport “whether she plans to regulate dynamic pricing structures within the private hire vehicle sector”.
In her response, Greenwood made clear that the Government does not intend to intervene, placing responsibility firmly with the market and existing regulatory framework. She said: “Pricing structures are a commercial matter for private hire vehicle operators.”
Ministers say pricing remains a commercial matter for operators as Reform UK MP presses for intervention
She added that current booking rules provide sufficient consumer protection, stating: “All private hire vehicle journeys must be booked in advance and so passengers are able to compare services on price and other factors before making a booking.”
The response reinforces the Department for Transport’s long-standing position that private hire fares should not be regulated in the same way as hackney carriage tariffs, which are typically set or capped by local authorities. Instead, private hire pricing has been left to operators on the basis that advance booking allows passengers to make informed choices.
Dynamic pricing, which also includes surge pricing during periods, adjusts fares in real time based on supply and demand. While widely used by large app-based platforms, the practice has attracted criticism during periods of high demand, such as major events, adverse weather or public transport disruption.
Industry figures have argued that the absence of regulation can create an uneven landscape between taxis, which often operate under controlled tariffs, and private hire vehicles, which can lower and raise prices significantly at short notice. Passenger groups have also raised concerns about affordability and transparency.
However, Greenwood’s response suggests no change in policy, with ministers continuing to rely on competition between operators rather than direct intervention. The Government has repeatedly pointed to the requirement for pre-booking as a key distinction between taxis and private hire vehicles when justifying its approach.
The exchange comes as wider taxi and private hire reform remains under review, with the Department for Transport considering issues such as national standards, cross-border licensing and accessibility. Dynamic pricing, however, does not currently appear to be on the agenda for legislative change.
