MULTI-MILLION POUND LICENCES: How much do ridehail giants like Uber or Bolt pay for TfL operator licences in the capital?
Transport for London (TfL) charges private hire operators like Uber, Bolt and Addison Lee sizeable tiered fees to operate within the capital. These fees are part of TfL’s efforts to manage the regulatory, licensing, and enforcement responsibilities tied to the growing number of private hire vehicles (PHVs) across London.
The fee structure is designed to ensure that operators of all sizes pay proportionately, with larger operators contributing more due to the increased oversight they require.
The total licensing cost for private hire operators is divided into two parts: an application fee and a grant of licence fee.
Application Fee: This is the initial fee that must be paid in full when submitting a licence application. TfL will not process any applications without full payment. It is a non-refundable fee, regardless of whether the application is approved or rejected.
Grant of Licence Fee: If the application is successful, a grant of licence fee must be paid before the licence is issued. This fee is based on the size of the operator, with smaller operators paying less and larger operators paying significantly more.
The fees vary significantly depending on the number of vehicles an operator intends to run. The more vehicles an operator manages, the higher the fees, reflecting the increased regulatory burden placed on TfL.
For smaller operators managing up to 10 vehicles, the total fee for a five-year licence is £2,000, with an initial £400 application fee and a £1,600 grant of licence fee. For larger operators with fleets between 11 and 20 vehicles, the total fee rises to £6,000. As fleet sizes grow, so too do the costs. Operators managing between 21 and 50 vehicles pay £19,000, while those with between 51 and 100 vehicles are charged £30,000.
For operators running fleets of over 100 vehicles, the costs escalate rapidly. Those with between 101 and 500 vehicles face a total fee of £150,000, while operators with between 501 and 1,000 vehicles are charged £350,000 over five years. For the largest operators like ridehail giants Uber, managing fleets of over 10,000 vehicles, they are charged £2.9 million for a five-year licence, including an initial £580,000 application fee.
Applicants must confirm the number of PHVs they plan to operate at any given time throughout their five-year licence period.
The fees collected are essential to fund TfL’s regulatory, licensing, and enforcement activities, which include inspections, audits, and other oversight measures. These efforts ensure that private hire operators comply with London’s stringent safety and operating standards. The fee structure aims to balance regulatory demands while ensuring operators contribute proportionately to the cost of maintaining these services.
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