Uber fuels 79% surge in taxi licence applications as Swansea market undergoes major shift
- Perry Richardson
- 17 minutes ago
- 3 min read
Uber’s arrival in Swansea has triggered a significant transformation in the city’s taxi and private hire market, with council figures revealing a 79% increase in licence applications over the past year as more drivers seek the flexibility offered by app-based work.
The findings are contained in a report presented to Swansea Council’s Scrutiny Working Group, which examines how the licensing authority is adapting to changing market conditions and the impact of technology-led operators.
According to the report, council officers believe the sharp rise in applications is “largely thought to be due to the introduction of Uber to Swansea in January 2024 and the flexibility for drivers, as they can choose when to work, under this data-based app Operator.” The increase comes after a period of reduced driver numbers during the pandemic, followed by a recovery in the workforce as demand returned.
The report says Uber’s launch created immediate interest from both passengers and the existing taxi trade. It notes that the public “largely welcomed the arrival of Uber in Swansea, with increased availability, dynamic pricing and the ability to pay automatically via the app”.
The company also offered financial incentives to encourage passengers to begin using the platform. At the same time, interest in becoming a licensed taxi or private hire driver increased because of the self-employed, flexible working model, allowing drivers to log in when they choose for up to 10 hours of driving each day before mandatory rest periods apply.
Council officers were keen to dispel what they describe as a common misunderstanding surrounding app-based drivers. The report states: “Each Uber driver is licensed in exactly the same way and is compelled to undergo the same suitability and safety checks as any other licensed driver with Swansea Council. This is something which is still very much misunderstood.”
Applications for additional private hire vehicles also rose following Uber’s arrival, with every vehicle remaining subject to the council’s existing licensing and safety standards.
While consumer choice has expanded, the report highlights concerns from the established trade during Uber’s early months in Swansea. Existing operators raised objections over the use of drivers and vehicles licensed by neighbouring authorities. According to the report, Uber encouraged drivers from areas including Cardiff and Newport to work in Swansea until sufficient locally licensed drivers had joined the platform. This led to an increase in complaints, enquiries and enforcement activity for council licensing officers.
The issue centres on cross-border hiring, which the report described as a growing national concern. Although often controversial within the taxi industry, the practice remains lawful where the driver, vehicle and operator are all licensed by the same authority, known within the trade as the “Trinity of Licences”. Swansea Council says many licensing authorities remain concerned because standards vary across the UK, prompting representations to both the Department for Transport and the Welsh Government seeking legislative reform.
The council also identifies a noticeable shift away from traditional hackney carriage licensing. Swansea currently licenses 273 hackney carriage vehicles, including 170 wheelchair accessible taxis, alongside 971 private hire vehicles. Officers note that “market trends also indicate a gradual shift of drivers from Hackney Carriage to PHV licensing. This seems largely due to the introduction of the app-based operator Uber.” However, the report warns that many wheelchair accessible vehicles spend weekdays undertaking school transport contracts, reducing availability for members of the public during peak daytime hours.
Although Uber has contributed to greater driver recruitment, the report stresses that many of the wider challenges facing the industry remain unresolved.
Swansea continues to experience the national decline in wheelchair accessible taxis, with the council introducing several policy changes aimed at encouraging operators to retain and licence accessible vehicles. These include allowing a wider range of wheelchair accessible vehicle designs and introducing an additional £1 fare supplement for larger five to eight-seat hackney carriage vehicles to help offset higher operating costs. Even so, officers conclude that expanding accessible provision is likely to require financial incentives beyond traditional licensing controls.
The report concludes that taxi licensing remains “a critical public protection function” but argues that legislation has failed to keep pace with modern operating models and customer expectations. It says many of the challenges affecting taxi availability are national rather than local and expresses hope that the Welsh Government will introduce updated taxi licensing legislation during the next Senedd term to better regulate the modern market.
