Taxis vs Private Hire Vehicles: What’s the Difference?
London is famous for its iconic black cabs, but in recent years, app-based private hire vehicles (PHVs) have become just as common on the city’s roads. While both provide passenger transport, there is a significant difference in how they operate in London.
In this article, we will look at how traditional taxis differ from private hire vehicles. If you want to become a licensed taxi or private hire driver, then this article will help you decide which service is more suited to you.
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Article Highlights
- Differences and similarities between taxis and PHVs.
- Earning potential of both services.
What are Private Hire Vehicles?
Private hire vehicles are booked through websites or mobile apps of ride-hailing platforms like Uber and Bolt. These apps show passengers the fare they will pay before booking a ride.
If you don’t own a private hire vehicle, you can get one through Fleeto’s PCO car hire plans to start driving and earning.
What are Traditional Taxis or Black Cabs?
Black cabs can be hailed on the street by waving a hand or through designated taxi ranks, which are usually located at airports, train stations, and busy public areas. Fares are calculated based on time and distance at the end of the ride using a taximeter.
Key Differences Between PHVs and Taxis
Appearance
Private Hire Vehicles
Private hire vehicles include a wide range of vehicles, including saloons, SUVs, and 7-seaters. They don’t have any roof sign or unique shape that separates them from standard cars.
Taxis
Black cabs are purpose-built vehicles with a unique shape that makes them instantly recognisable. They also have a yellow ‘Taxi’ sign on the roof, which lights up when the cab is available for passengers. Most taxis in London are black, but they can be of any colour.
Licensing and Training
Private Hire Vehicles
Both private hire vehicles and drivers must be licensed by their local authorities. For instance, if you are based in London, you and the vehicle should meet TfL (Transport for London) requirements to get licensed. For vehicles, this means:
- Passing inspections and MOTs.
- Meeting emission standards.
- Fulfilling age requirements (a PHV cannot be older than 10 years).
For drivers, this means:
- Being at least 21 years old.
- Holding a UK driving licence for at least three years.
- Passing medical tests, DBS checks, SERU assessment, and topographical assessment.
For more details, please read our thorough guide on how to obtain a PCO licence here.
Taxis
Black cabs and their drivers in London are also licensed by TfL. Here are the main requirements:
- Black cabs cannot be older than 15 years.
- All the black cabs licensed after 1 January 2018 must be zero-emission capable for at least 30 miles.
- The vehicles must be purpose-built London taxis (like the LEVC TX or old TX4), not standard cars.
- Taxi drivers must pass the Knowledge Test, which takes 2-4 years of preparation and is far more complex than the topographical assessment for PHV drivers.
Fare Structure
Private Hire Vehicles
Passengers who book PHVs know how much they will pay before booking their rides. The fares can vary depending on the time, distance, and driver demand. For instance, when the ride demand is high, the fares may increase as well.
You can read more about surge pricing in our article on Uber surge pricing here.
A well-kept PCO car is essential for a pleasant passenger experience and an uninterrupted service. We at Fleeto make sure that our cars are regularly serviced and maintained so that you can drive without worrying about unexpected breakdowns that could lower your ratings. Book a PCO-ready car now with Fleeto and drive stress-free.
Taxis
Local authorities regulate black cab fares, so there are no surges even during peak hours. Instead, they use a tariff-based model.
- Tariff 1 comes with standard fare and applies from Monday to Friday between 5 AM – 8 PM.
- Tariff 2 applies during weekday evenings from 8 PM – 10 PM and on weekends from 5 AM – 10 PM. The fares are higher than standard fares during these times.
- Tariff 3 has the highest fares. It applies every night from 10 PM – 5 AM and throughout all public holidays.
- Tariff 4 applies to journeys that are longer than 6 miles and has the same fares as tariff 2.
Black cab drivers use taximeters to calculate fares at the end of the ride. A taximeter shows the distance travelled and time spent during the journey.
Insurance
PHVs need private hire insurance, which is specially designed for journeys booked through ride-hailing apps like Uber and Bolt. On the other hand, black cabs require public hire insurance, which covers trips booked on streets or taxi ranks.
Public hire insurance is more expensive than private hire insurance due to unplanned routes and the lack of upfront fares. These factors increase the risk of disputes or claims, and a higher risk means higher insurance premiums.
Ratings and Feedback
Private Hire Vehicles
Passengers can book private hire vehicles several hours in advance to avoid being stranded during peak hours. They can also view driver ratings and reviews for a better ride experience.
Taxis
The availability of taxis depends on the time of day and location. Not all areas have taxi ranks, so finding a taxi can be difficult for passengers in certain locations. In addition, there is no way for passengers to see driver ratings. Complaints or feedback are directly submitted to TfL.
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So, Who Earns More, Taxi Drivers or PHV Drivers?
PCO drivers usually earn more due to their availability throughout London. While black cab drivers have a tariff-based system to earn higher fares, they mostly operate in certain areas like airports or train stations which limits their availability.
Another factor to consider is London’s population, which mostly consists of young people with smartphones. Hailing rides through smartphone apps is more convenient than booking taxis on streets or taxi ranks. This gives PCO drivers a significant edge over taxi drivers in London.
Frequently Asked Questions
Who earns more between black cab and private hire drivers?
Private hire drivers usually earn more due to a wider client base and availability across London.
Can a PCO driver also drive a black cab?
A PCO driver cannot drive a black cab for ride-hailing purposes. Both services require separate licences.
Can I use my personal car as a PHV?
Your car needs to have a PHV licence which is issued by TfL to vehicles that meet their standards. Without the licence, using your car personal car as a PHV is illegal.
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