Ground Transport Group - Rising demand outside the capital for London black cabs

London’s black cabs are as iconic as many of the landmarks they take tourists to, with skilled drivers offering passengers an encyclopaedic knowledge of the sights they are visiting.

They have come a long way from the horse-drawn carriages of 1654 and are today produced with cutting-edge technology to be greener and more accessible.

But falling taxi driver numbers in London has led to a drop in the number of black cabs in the capital, and the decline has affected their manufacturer, LEVC.

Taxi Point reports that “ongoing pressure of inflation on drivers, high interest rates dissuading many from refinancing, and a decreasing number of new drivers completing the rigorous Knowledge Test” has led the company to file papers with Companies House to explain the drop. This is on top of other costs such as public hire insurance, servicing and maintenance and fuel and charging.

Fewer cabbies

Taxi numbers took a huge hit during the pandemic with Department for Transport figures showing a high of 22,500 taxis in London in 2015, which had fallen to 14,800 in 2024 – down 2.1% on 2023’s total of 15,100.

The trend was reflected in LEVC’s figures submitted to Companies House which show that in 2023, the company saw a fall in total sales to 2,024 units – 14% down on the previous year. However, it stressed that a major part of this is due to a drop in its VN electric van sales. It reported a 5.2% drop in revenue to £129.2 million from £153.4 million.

Taxi Point reports that LEVC has taken steps to address the downturn in VN sales, including improved financing options for fleet customers and adjusted warranty pricing and discount structures.

New direction

While disappointed with decreasing demand in the capital, LEVC has been buoyed by record sales of the TX black cab outside London.

Taxi Point reports that “sales of the iconic TX black cab model outside London have reached their highest levels since 2019. The rise in TX sales is attributed to diversifying into new markets, including patient transfers, school transport for children with mobility needs, and tourist mobility services.”

This matches DfT figures which show the number of taxis in England and Wales outside London reached a high of 58,800 in 2017 and is now sitting at 45,800.

Figures also show the total number of licensed taxi and PHV vehicles and driver licences in England have both continued their long-term upward trend, reaching 313,000 and 381,100 respectively on April 1, 2024. The increase since 2023 has been driven by a 10.5% increase in the number of PHVs, reaching 256,600. The number of taxis has decreased over the same period by 1.4% to 56,400.

Investment

LEVC’s iconic cabs are a major investment for taxi drivers wherever they operate, but they are key to a taxi driver’s business. As well as being easily identifiable, they are reliable, comfortable, reduce pollution and are exempt from vehicle excise duty, congestion zone and clean air charges.

Although taxi driver numbers in London may have dipped, it is easy to see why the popularity of the cabs has grown outside the capital where they will help in many towns and cities where people with additional needs struggle to find suitable cabs.

While it is good news for LEVC that the market has changed, London’s black cab fleet provides a vital and historic service that goes beyond getting tourists from one landmark to another. Hopefully more drivers will join the trade to keep the iconic cabs on the capital’s streets in large numbers.

All information is correct at time of publication. Information provided within this article may have changed over time. No responsibility for its accuracy or correctness is assumed by John Patons Insurance Services or any of its employees.