The Licensed Private Hire Car Association has started legal action against the industry regulators Transport for London in response to the "extortionate" rises in operators fees.
The group headed up by Chairman Steve Wright has moved quickly to apply for a judicial review to stop planned rises. TfL argue that the rises were needed to fund the ever growing numbers of compliance officers after five years of frozen fees.
However, the LPHCA argue that the number of compliance officers are too high and do not need funding.
Steve Wright said: “It feels as though TfL is trying to close most of the business down with these eye-watering rises, so that there are only a few big firms and a few small ones left. We are in the middle of a war.”
There is a fear that the extra costs may be pushed onto the the drivers rather than the customers in what has become a hugely price sensitive market. According to the GMB in The Evening Standard as many as 500 operators and 30,000 private hire drivers could go under due to the rises.