TAXI VEHICLE SPLIT: LTDA survey finds 60% of black cab drivers own vehicles while 40% rent
- Perry Richardson
- 1 hour ago
- 2 min read
A new survey by the Licensed Taxi Drivers’ Association (LTDA) has found that 60% of responding London black cab drivers own their taxi outright, while 40% rent their vehicle instead.
The findings, based on 2,768 responses from LTDA members, provide a snapshot of how drivers are managing the high costs associated with operating licensed taxis in the capital. The survey also showed that 70% of respondents currently drive the LEVC TXE range-extended electric taxi, reflecting the industry’s shift towards cleaner vehicles under Transport for London licensing rules.
For drivers who own their taxi, the main advantage is long-term financial control. Once finance agreements are paid off, owner-drivers avoid ongoing weekly rental charges and can build equity in the vehicle. Ownership can also provide greater flexibility over working hours and mileage without restrictions that may come with some rental agreements.
However, buying a modern black cab remains expensive, with new TXE vehicles costing more than £70,000 before financing costs are considered. Owners are also responsible for maintenance, repairs, insurance and vehicle downtime.
New LTDA member data reveals most London black cab drivers are owner-drivers despite high upfront costs of electric taxis
Renting remains a popular option for four in ten drivers because it lowers the barrier to entering the trade. Weekly rental agreements typically include servicing and maintenance, helping drivers avoid large unexpected repair bills. Renting can also appeal to drivers uncertain about long-term plans or those unwilling to commit to major finance agreements during periods of fluctuating passenger demand and rising operating costs.
The downside for renters is the ongoing weekly expense, which can significantly reduce earnings over time. Drivers renting vehicles may also face restrictions linked to mileage, vehicle availability or contract conditions. Over several years, the total amount paid in rental fees can exceed the cost of ownership without leaving the driver with a resale asset at the end.
The LTDA survey highlights the continued financial pressures facing the capital’s taxi trade as drivers balance rising vehicle costs against the need to maintain profitability in a heavily regulated market transitioning towards lower-emission transport.
