Rebuilding the London taxi workforce: Why attracting and keeping new drivers is now critical
- Perry Richardson
- 3 hours ago
- 3 min read
London’s taxi trade has been stood at a crossroads for a number of years wondering just how to stop the decline in numbers continue. Whilst still seen as a respected profession, the number of working cabbies in the capital has fallen sharply, raising serious questions about how the industry can attract and retain the next generation of drivers. The decline is not a recent development but the result of a slow, steady contraction that has created concern among both drivers and passengers.
Transport for London (TfL) figures show the number of licensed taxi drivers has dropped by around a third since 2013. The flow of new recruits has almost dried up, with only just over one hundred new licences issued last year compared with more than a thousand less than a decade ago. Many of those still working are approaching retirement age, while younger Londoners appear reluctant to take on the costs and demands of the job.
At the heart of the challenge lies a perceived affordability. The cost of entry has climbed to levels that make the job undesirable for many potential newcomers. The shift to zero-emission capable taxis has been essential for London’s environmental goals but has also pushed up purchase prices. Even with finance options available, the sums involved are significant, particularly at a time of high living costs. Leasing can offer an alternative route to working, yet monthly payments often sit at around £1,500.
The Knowledge, London’s famous test of geography and memory, remains another major, but necessary barrier. While it continues to set the global standard for professional taxi training, the long completion time can deter many from even starting. TfL has indicated that it will look at how technology can support the learning process, but reform has been slow. For the trade to survive, there may need to be a quicker route that maintains the professional standards.
Competition from private hire and ride-hailing platforms adds further pressure. With over 100,000 licensed private hire drivers in the city, the market for paid passenger transport is more crowded than ever. Joining the taxi trade involves far higher costs and longer preparation than signing up to a private hire platform, so many would-be drivers simply take the easier path. Taxi drivers argue that the playing field is uneven, with growing calls for caps in numbers for private hire vehicles to be made.
Working conditions have also changed. Increasing congestion, road restrictions, and the continued removal of taxi access to certain routes have reduced efficiency. For many, this has meant longer hours for less income. Some have left the job entirely, while others have delayed upgrading to new vehicles due to uncertainty about future earnings. We haven’t even touched on the uncertainty around what autonomous ride-hail will bring to the trade in the years ahead either.
To attract and keep drivers, the industry needs a coordinated response. Financial support must play a part. The reduction of plug-in taxi grants left a gap that has made the switch to electric models harder. Reinstating higher levels of support, or providing targeted low-interest finance, could ease the burden on new entrants and retain those thinking of leaving. Similarly, local authorities could look at reducing early licensing costs or offering short-term fee relief to help drivers establish themselves.
Recruitment also depends on image. The black cab remains one of London’s strongest symbols, yet for many younger people, it no longer appears to be a modern or forward-looking career. The trade could benefit from promoting the flexibility, independence, and professionalism the job offers, as well as the sense of belonging to a respected London institution. Structured mentoring from experienced drivers might also help newcomers manage the steep learning curve and build confidence.
Retention is equally vital. Many current drivers are leaving not because they dislike the work but because of the constant uncertainty surrounding regulation, cost and congestion. TfL’s latest Taxi and Private Hire Action Plan sets out several measures designed to improve working conditions, including better rank provision, enhanced engagement with the trade and improvements to infrastructure. However, many in the trade believe these measures do not go far enough and do little to tackle the underlying issues.
The taxi trade has always adapted. From the shift to diesel, to the introduction of card payments and now electric vehicles, drivers have repeatedly adjusted to changing times. Yet without renewed investment in people, this adaptability may not be enough. The sector must ensure that new entrants see a clear and realistic career path, not a financial risk.
If the number of licensed drivers continues to fall, the consequences will be felt across London. Passengers will face longer waits, accessibility will suffer, and the city could lose one of its most distinctive features. The time for discussion waiting at the crossroads is over. What is needed now is decisive action from regulators, manufacturers, and the trade itself to make taxi driving in London both viable and attractive once again.
