Knowledge pays off as taxi drivers outpace private hire in household earnings, according to TfL data
- Perry Richardson
- 7 minutes ago
- 2 min read
London taxi drivers are more likely to report living in higher income households than private hire drivers, according to Transport for London data, when analysis is limited to respondents who disclosed their earnings.
Among taxi drivers who disclosed their income, almost three in ten fall into households earning £47,850 or more. In comparison, fewer than one in ten private hire drivers who responded are in that highest bracket.
At the lower end of the scale, the contrast reverses. Close to a quarter of private hire drivers who answered the question are in households earning up to £17,399, compared with around 7% of taxi drivers. In the £17,400 to £21,749 band, more than one in six private hire drivers are represented, compared with roughly 7% of taxi drivers.
Private hire drivers also outnumber taxi drivers in the £21,750 to £26,099 and £26,100 to £30,499 brackets once non-responses are removed. In both cases, private hire drivers account for around one in seven respondents, while taxi drivers account for just under one in ten.
Adjusted figures excluding non-responses show taxi drivers more likely to report higher household earnings than PHV counterparts.
In the middle-income range of £30,500 to £47,849, the two sectors are broadly aligned, representing roughly a third of taxi drivers who answered and just over a fifth of private hire drivers.
The original figures show 59% of taxi drivers and 36% of private hire drivers selected ‘prefer not to say’ or did not know their household income. When those non-responses are excluded and percentages are recalculated based only on those who provided an answer, the gap between the two sectors becomes more pronounced.
The divergence at the top and bottom of the income scale reflects structural differences between the trades. London taxi drivers are required to complete the Knowledge of London, a qualification process that can take several years. The extended training period limits market entry and tends to result in drivers treating the role as a long-term career.
By contrast, private hire licensing routes are typically shorter and less restrictive. Combined with the rapid expansion of app-based operators, this has increased supply and competition within the sector.
Revenue models also differ. Taxi drivers can retain the full regulated metered fare, aside from operating costs, and are not subject to the same commission deductions that many private hire drivers face when working through platforms such as Uber or Bolt. Commission rates can materially reduce take-home pay per journey.
Taxi fares are set by the regulator and typically command higher per-mile rates than many private hire trips. In addition, taxi drivers can legally ply for hire and use ranks, enabling access to immediate street demand without relying solely on pre-booked work.
