The history of London’s suburban taxi sectors and their role in today’s trade
- Perry Richardson
- 3 minutes ago
- 2 min read

London’s taxi licensing system is split between two groups of drivers, those with the All London Green Badge and those with the Suburban Yellow Badge. The system was introduced to ensure that passengers across Greater London had access to licensed taxi services, not just in the centre of the capital.
The Green Badge covers the entire Greater London area and requires drivers to pass the full Knowledge of London. This involves learning thousands of routes, landmarks and key destinations, a process which can take several years to complete. Once licensed, Green Badge drivers can pick up passengers anywhere in London.
By contrast, the Suburban Yellow Badge was designed to support localised taxi services in areas outside Central London. The Greater London area was divided into nine suburban sectors, each with its own licensing requirements. Drivers taking the Suburban route are expected to learn in-depth details of their chosen sector rather than the entire city. This allows them to provide a reliable service to passengers in towns and outer boroughs without undergoing the much longer Green Badge training.
Historically, the suburban licensing system was created to fill gaps where demand for taxis was strong but central drivers were less likely to serve consistently. In outer areas such as Bexley, Hillingdon or Havering, suburban badge holders ensured that local residents had access to taxis without relying solely on private hire vehicles or waiting for Green Badge drivers who might prioritise central work.
The system, however, has also created boundaries that drivers are expected to respect. Suburban drivers may only pick up immediate work, such as ranks or hails, within their licensed sector. They are permitted to complete pre-booked jobs, but the journey must begin inside their sector. The intention was to protect both Green Badge and Yellow Badge drivers, giving clarity on where each could operate.
Today, the arrangement remains under pressure. London’s taxi trade has changed significantly with the arrival of app-based private hire operators and the shift in passenger travel patterns. The LTDA has argued that enforcement of suburban restrictions is no longer robust enough, leading to reports of suburban drivers working outside their designated areas, particularly in Central London.
While the suburban system continues to provide value in parts of outer London, where local knowledge is still vital, the overlap of modern technology and looser enforcement has blurred the lines between the two licences. For many in the trade, the challenge now is ensuring that the original purpose of suburban licences is not lost and that rules remain clear and fairly applied across London.