App platforms have outpaced taxi and PHV regulation as Transport Committee report recommends licensing overhaul

The rapid rise of app-based private hire operators has exposed significant weaknesses in England’s taxi and private hire licensing framework, according to MPs who say legislation designed decades before smartphone booking platforms now struggles to regulate modern transport services.

A new Transport Committee report has identified app-based operators as one of the clearest examples of how existing licensing laws have failed to keep pace with technological change. The committee concluded that the current framework, built largely around legislation dating back to the Local Government (Miscellaneous Provisions) Act 1976 and even the Town Police Clauses Act 1847, is no longer fit for purpose in an era dominated by digital ride-hailing services.

The findings come as the Government prepares to publish a draft Taxi and Private Hire Vehicle Bill following its announcement in the King’s Speech that it intends to modernise taxi and private hire licensing laws. The committee has urged ministers to ensure app-based operators are fully incorporated into any new legislative framework.

According to evidence gathered by MPs, the growth of ride-hailing apps has blurred the distinction between taxis and private hire vehicles. The United Cabbies Group told the committee that the near-instantaneous booking process offered by smartphone apps has increasingly narrowed the practical difference between traditional street hails and pre-booked journeys. Meanwhile, local authorities reported difficulties applying legislation that makes no specific reference to app-based operators.

Rotherham Metropolitan Borough Council told MPs there remains uncertainty when interpreting current legislation because digital ride-hailing platforms are not explicitly recognised within it. Blackpool Council’s Public Protection Commercial Enforcement Manager Lee Petrak highlighted what he described as an “absurd” situation where a major platform can conduct nationwide operations while holding a single operator licence.

The issue is particularly significant given the scale of the modern app-based sector. Bolt told the committee it currently operates across 50 UK local authority areas and must comply with around 3,900 individual licensing requirements. The company described the UK as the most complex regulatory environment it operates in despite working across 50 countries and 600 cities worldwide.

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Industry participants offered differing views on whether the current framework remains effective. Uber argued that the UK taxi and private hire sector is already well regulated and that licensing authorities maintain high standards. Bolt agreed that standards are generally robust but said much of the legislative framework dates back more than four decades and does not adequately reflect modern technology or business models.

The committee also examined concerns around driver distraction in app-based operations. MPs questioned Uber and Bolt about whether drivers were required to engage with booking apps while driving in order to secure their next fare. Both companies said drivers are not required to interact with apps during journeys and can ignore trip requests. Uber said its system is designed to minimise distraction, while Bolt pointed to features including auto-matching and driver preferences that reduce interaction with devices.

Beyond passenger-facing services, MPs heard concerns from drivers about the economic impact of app-based platforms. Evidence submitted to the committee highlighted complaints over high commission rates, fluctuating demand and low earnings. Some drivers reported needing to work up to 60 hours per week to maintain viable incomes, while confidential evidence described concerns around algorithmic job allocation systems and declining trip volumes.

The committee said previous attempts to modernise taxi legislation have stalled despite years of warnings. The Law Commission produced a comprehensive review and draft bill in 2014, while a government Task and Finish Group in 2018 concluded that the regulatory regime was no longer fit for purpose due to technological advances. Neither initiative resulted in the fundamental legislative overhaul many stakeholders had sought.

MPs have now recommended that ministers use both pieces of work as the foundation for a new licensing framework. The committee said the Government should update the proposals where necessary to reflect the realities of app-based operators while retaining clear distinctions between taxis and private hire vehicles. It also called for a single consolidated statutory framework that can regulate both sectors consistently across England.

The report concludes that ride-hailing apps have transformed how passengers book journeys and how drivers operate, but the legal framework governing the sector has failed to evolve at the same pace. As ministers prepare new legislation, the committee’s message is that modern regulation must explicitly account for app-based operators rather than attempting to fit digital platforms into rules written for a very different era.