Taxis vs PHV: How much more can you earn?

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The choice between being a hackney taxi driver or a private hire vehicle (PHV) driver is a crucial one for anyone entering the market. Not only does it determine the type of work one engages in, but it also significantly impacts the earnings potential. Today, we look at how significant the difference in earnings between these two professions is.

For those unfamiliar, hackney carriage taxis and PHV drivers differ in the way they operate and the regulations they must adhere to. PHV drivers must work under an operator, which often comes at a steep price. In fact, PHV drivers can lose as much as 45% of the fare paid by the customer in commission fees. On the other hand, taxis picking up passengers from ranks and the street keep 100% of the fare revenue.

On average, ride-hail commission for PHV drivers sits around the 35% mark. Taxi drivers do have the option of working with taxi apps, albeit with lower commission fees, due mainly to the necessity in staying competitive against the street hail. The current average commission for taxi drivers who use these apps is approximately 15%.

It is important to note that taxi drivers invest more time and money to pass more rigorous licensing tests. Additionally, owning and operating a taxi can be more expensive in some regions. However, to offset these costs, fare tariffs for hackney carriages are usually set higher than PHV operator prices.

While the difference in earnings can vary widely from region to region, drivers sometimes hold dual taxi and PHV licences to navigate both sectors based on demand. In certain areas, Hackney Carriage drivers can earn tens of thousands of pounds more compared to ride-hail drivers. This variation highlights the significant financial discrepancy between the two professions.

Ultimately, the decision between becoming a hackney taxi driver or a PHV driver goes beyond personal preferences. It is crucial for individuals to consider the varying earnings potential, commission fees, licensing requirements, and market demand in their specific region.