Falling taxi driver numbers in London have hit black cab manufacturer LEVC, which has also seen sales outside the capital move up a gear.
The company – which makes the EV iconic black cabs – filed papers with Companies House demonstrating a steady reduction in drivers within central London – and the subsequent decrease in demand for new cabs. Taxi Point reports that the factors driving the drop include the “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”.
Falling numbers
Department for Transport figures show that while the capital saw a high of 22,500 taxis in 2015, this had fallen to 14,800 in 2024 – down 2.1% on 2023’s total of 15,100.
In line with this drop, figures submitted to Companies House show that in 2023, LEVC saw a fall in total sales to 2,024 units – 14% down on the previous year – but a major part of this was linked to a drop in its VN electric van model sales. It reported a 5.2% drop in revenue to £129.2 million from £153.4 million.
In a bid to address this, Taxi Point reports that LEVC has improved financing options for fleet customers and adjusted warranty pricing and discount structures in a bid to attract more VN customers.
It also received two major capital injections from parent companies Natixis SA and Geely UK Limited, with a further £100 million recapitalisation planned.
Positive direction
Despite concerns over demand in the capital, 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.”
DfT figures show the number of taxis in England and Wales outside London reached a high of 58,800 in 2017 – almost 5 times as many as the 12,400 in 1972. In the past 7 years, numbers have dropped and reached 45,800 in 2024, a similar level to what was seen in 2004 but still almost 4 times as many as when records began in 1972.
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, but they are the most important tool of a driver’s trade. As well as being reliable and comfortable, they reduce pollution and are exempt from vehicle excise duty, congestion zone and clean air charges. They are also built to be fully accessible with a built-in wheelchair ramp and restraints to safely secure a wheelchair during a journey.
While taxi driver numbers in London may have dipped, the popularity of the cabs has now seen demand grow outside the capital. They are practical, easily identifiable and their accessibility is a boost to passengers in many towns and cities where people with additional needs have long complained about the difficulty of finding suitable cabs.
The market may have changed as demand for the TX widens, it is hoped that more drivers join London’s black cab fleet to carry on the vital and historic service provided by the capital’s cabbies.
