What would a private hire vehicle cap mean for passengers and drivers in London?
- Perry Richardson
- May 9
- 2 min read
Calls for a cap on private hire vehicle (PHV) licences in London are gathering pace as trade unions and driver groups warn of worsening conditions in the sector. The App Drivers and Couriers Union (ADCU) has been vocal in its demands for Transport for London (TfL) to introduce limits on new PHV licences, arguing that unchecked growth is harming driver livelihoods and the city’s transport network.
London is currently home to almost 100,000 licensed PHVs, a number that has remained high despite post-pandemic travel changes and shifts in passenger demand. With no formal cap in place, more drivers are entering the market each year, intensifying competition for jobs and saturating the average earnings for those behind the wheel.
ADCU General Secretary Zamir Dreni has warned that the oversupply is leaving many drivers unable to earn a stable income. He says the race to the bottom on fares and availability is forcing drivers to work longer hours just to break even. The union believes that by capping licence numbers, TfL could help stabilise the sector, reduce financial pressure on drivers, and support wider environmental goals by cutting the number of vehicles circulating in search of work.
For passengers, the impact of a cap would depend on how it is implemented. Critics of the proposal argue that fewer vehicles could lead to longer wait times and higher prices, particularly during busy periods. However, others point out that an over-saturated market does not guarantee good service, and quality could improve if drivers are able to earn more working shorter and less tired shifts.
Congestion is another major concern. With a high volume of PHVs contributing to traffic levels in central London, a cap could ease pressure on the road network. TfL has identified reducing congestion and emissions as key aims in its long-term transport plans.
The debate over a cap is not new, but it has taken on renewed urgency as TfL prepares its 2025 Taxi and Private Hire Action Plan. The London Assembly Transport Committee is set to review the issue as part of its upcoming evidence session with stakeholders, including the ADCU. The call for a capping would also be firmly supported by the taxi industry too.
A cap would represent a significant shift in policy and would require legislative backing from the Government. But for many in the industry, it is increasingly seen as a necessary step to bring stability to a sector that continues to grow without limit.
