Larger minicab firms such as Uber and Addison Lee are set to see a steep rise in the cost of operating in London after TfL confirmed an overhaul of its registration and licence fees.
Transport for London currently has only fee tiers, with firms operating 2 vehicles charged £1,488 for a five year permit and those operating three or more vehicles charged £2,826.
The existing charges predate the advent of large operators such as Uber, which is currently waiting to find out if TfL will grant it a new licence, and mean that smaller operators pay the same as those with significantly more vehicles and drivers.
Under the new structure, which was approved by the TfL board’s finance committee, eight new tiers ranging from around £2,000 for a five year licence for those with 10 vehicles or fewer, to £464,000 per year for the largest operator will be introduced.
As the cost of regulating each private hire operator varies according to their size, TfL says the new fees “more accurately reflect the resources required to regulate firms, based on the size of their operations.”
Helen Chapman, General Manager of Taxi & Private Hire, said: “There has been a huge growth in the industry in recent years and it is only fair that the licence fee reflects the costs of regulation and enforcement.
“The safety of Londoners is TfL’s top priority, and the changes to fees will help us fund additional compliance officers who do a crucial job cracking down on illegal and dangerous activity.”
The money raised from the fees will be ring-fenced for licensing, regulatory and enforcement measures, including the hiring of Mayor Sadiq Khan’s 250 extra compliance officers.
Despite facing a hike in their costs, Addison Lee has welcomed TfL’s new fees.
A spokesperson said: “Addison Lee fully supports Transport for London’s ambition of ensuring London’s taxis and private hire services are as safe as possible through improved regulation and increased numbers of enforcement officers.
“We recognise that these measures need to be paid for and are grateful that TfL has listened to our consultation response and developed an equitable framework for the charges necessary to cover the enforcement work they will undertake.”
Operator fees
| Number of vehicles | Current Fee (£) (Total) | Proposed 5 year fee (£) | Proposed Fee as an average annual cost (£) | ||
| Application | Grant of licence | Total | |||
| 0-10 | 1,488 | 400 | 1,600 | 2,000 | N/A |
| 11-20 | 2,826 | 1,200 | 4,800 | 6,000 | N/A |
| 21-50 | 2,826 | 3,800 | 15,200 | 19,000 | 3,040 |
| 51-100 | 2,826 | 6,000 | 24,000 | 30,000 | 4,800 |
| 101-500 | 2,826 | 30,000 | 120,000 | 150,000 | 24,000 |
| 501-1,000 | 2,826 | 70,000 | 280,000 | 350,000 | 56,000 |
| 1,001-10,000 | 2,826 | 140,000 | 560,000 | 700,000 | 112,000 |
| 10,001+ | 2,826 | 580,000 | 2,320,000 | 2,900,000 | 464,000 |
Driver and Vehicle fees
| Fee Type | Current Fee (£) | Proposed fee (£) | |
| Taxi vehicle | Application Fee | 65 | 66 |
| Licence Fee | 33 | 44 | |
| Total | 98 | 110 | |
| Digital Taxi Top
Application Fee |
133 | No change | |
| Digital Taxi Top
Licence Fee |
33 | No change | |
| Total | 166 | No change | |
| Taxi Driver | Application Fee | 80 | 120 |
| Licence Fee | 192 | 180 | |
| Total | 272 | £300 | |
| Knowledge of London | Appearance Fee | 400 | No change |
| Written Test Fee | 200 | No change | |
| Total | £600 | No change | |
| Private Hire Drivers | Application Fee | 150 | 124 |
| Licence Fee | 100 | 186 | |
| Total | 250 | 310 | |
| Private Hire Vehicles | Application Fee | 65 | 84 |
| Licence Fee | 35 | 56 | |
| Total | 100 | 140 |
