SATURATED TRADE: Union slams Government for refusing licensing authorities the power to cap minicab numbers

The App Drivers & Couriers Union (ADCU) has condemned Transport Secretary Heidi Alexander’s refusal to let Transport for London (TfL) and other licensing authorities cap private hire vehicle (PHV) numbers.

The decision comes as concerns grow over the scale of PHV growth in the capital and its impact on drivers, congestion, and passenger safety.

The decision, set out in a letter to London Assembly Member Elly Baker, has angered many within the trade. Some of those drivers say the PHV market in London has reached saturation, with more than 100,000 vehicles now licensed. They warn that uncontrolled growth is eroding pay, clogging roads, and weakening service standards.

ADCU President Cristina-Georgiana Ioanitescu said the Government’s stance was “an abdication of responsibility”. She said London’s roads are filled with underpaid drivers competing for limited work while large app operators continue expanding their fleets. Ioanitescu added that despite repeated warnings from the Mayor, TfL, and Assembly Members, ministers had chosen to side with major tech firms profiting from oversupply.

The union argues that a surplus of PHVs has driven down driver earnings, stretched working hours, and added to congestion and pollution. It says operators are onboarding thousands of new drivers without assessing demand, creating what it describes as “race to the bottom” conditions across the trade.

Ioanitescu criticised the Government’s claim that its decision supports consumer choice, saying ministers are ignoring the real impact of market saturation. She warned that without intervention, driver pay and safety would continue to deteriorate, and only large operators would gain from the current system.

Join us on WhatsApp here

The ADCU is now urging the Government to rethink its position. It wants TfL and other licensing bodies given powers to set caps based on local demand, congestion, and environmental data. The union is also pushing for fair pay protections, including minimum fares and guaranteed waiting time pay, along with greater transparency around how app algorithms allocate work and set prices.

Cristina-Georgiana Ioanitescu said: “The Government’s refusal to empower local authorities to manage private hire vehicle numbers is an abdication of responsibility. London’s roads are now choked with underpaid, overworked drivers competing for too little work, while the app operators continue to flood the market in pursuit of market share. TfL, the Mayor, and the Assembly have all repeatedly warned about the unsustainable scale of growth in the sector. Yet instead of listening to those on the front lines, the Transport Secretary has sided with the big tech platforms who profit from this chaos.

“The Transport Secretary’s claim that this decision has been taken to “support choice for consumers” and ensure both taxis and PHVs are able to operate within the market shows how disconnected ministers are from the daily realities of the gig economy.

“Passengers and the public will simply face more congestion and pollution, and drivers will continue to be trapped in poverty pay conditions, as oversupply drives down earnings. The only people who will benefit from this are the app-companies, who are already making eye-watering profits from a system that is unregulated, and out of control.

“Without sensible limits, there is no pathway to fair pay, safe working conditions, or a sustainable transport network. The Government must stop shielding app-based corporations from accountability and start protecting the workers and communities who keep our cities moving.”