London taxi firm details the costs facing cabbies and why its still a profitable full-time job

A well-known London taxi card payment provider has broken down the costs facing the capital’s cabbies, concluding part-time work has become more tricky in recent years, but the rewards are still there for full-timers.

According to Transport for London (TfL) data there are now 18,830 taxi drivers in the capital. Of those, 16,786 hold All London licences.

At the start of the pandemic the number of drivers registered in April 2020 stood at 22,337. All London Green badge holders have dropped by over 2,000 licensees.

A big shake up in driver recruitment is expected soon as an ongoing review into modernising the Knowledge of London is thought to be revealed soon.

Card payment solutions provider Cabvision detailed why the job can still be a profitable one, but only if you’re willing to put the hours in full-time.

Historically many drivers continued working into semi-retirement. However, rising vehicle costs have made it harder to run a taxi freehold whilst working just a couple of days a week.

A Cabvision spokesperson said: “Lots of debates on whether the costs outweigh the reward of driving.

“Based on the meter and the electric rise, it now costs approx £11 an hour to drive a TXe based on 40 hour week. The London living wage is £11.95, so drivers need to earn £30 an hour to stand still.

“There is no sick pay or holiday pay in the cab, so you could say the costs are even higher.

“£450 a week (in costs) to be your own boss and work times you prefer. I dare say a lot of small business owners would be happy with those costs. No perishable items, no security, no unsold stock."

Cabvision added: “Of course the costs reduce if you work more than 40 hours and the rewards are (currently) there but with the driver age demographics, you can certainly understand why the job doesn't appeal as much as it once did. Still good but different.”