Transport for London (TfL) leasing taxis at a reduced price is likely to be restricted under State Aid rules says London Mayor.
The Mayor, Sadiq Khan, also highlighted that leasing taxis through public resources, could put TfL in an unfair advantageous position, over direct competition.
Caroline Pidgeon, a London Assembly Member, asked Mayor Khan to re-examine the merits of providing support for fleet owners of taxis to purchase electric taxis through TfL using its powers of bulk purchasing. Through buying in bulk it is suggested that it would drive down the current price of electric taxis.
Sadiq Khan responded to the question saying: “Leasing cabs at a reduced price could put Transport for London (TfL) in direct competition with taxi rental companies and any financial advantage granted by TfL through public resources on a selective basis is likely to be restricted under State Aid rules.
“However, TfL has encouraged registered owners of black taxis to delicense their older, more polluting vehicles and upgrade to zero emission capable models.”
Image credit: LEVC