How to Become a Taxi Driver: The Definitive Guide

If you're bored with the usual 9-5 office job, have had enough of staring at a computer screen for a living, or want a job where you can set your own hours to suit your lifestyle, becoming a taxi driver might be the right career move for you. With the potential to earn around £30,000 a year and the opportunity to work to your own schedule, driving a taxi for a living could be right up your street. But how do you become a taxi driver, and what are the requirements? Is it a saturated market, or is this a scalable career choice that could give you a reliable living wage as well as job security?

In this article, we're going to take an in-depth look at how to start a career as a taxi driver, the benefits and the pitfalls, getting your taxi licence and finding work. We'll also look at everyday essentials, such as which insurance to get, whether vehicle sharing is a smart move, and some top tips to get you started in your new career.

How big is the industry?

Driving a taxi in the UK is an industry with a solid foundation. According to government figures, there were nearly 313,000 licensed taxis and PHVs in England in 2024. During that year, there were 56,000 licensed taxis on UK roads, with the remaining vehicles in that headline figure made up of PHVs (Public Hire Vehicles).

While the number of public hire taxis (those you can hail on the street) has dropped by 1.4% since 2024, the number of PHVs has increased by 10.5% over the same period. The drop in taxi numbers puts more demand on PHVs, which are also seeing a surge in interest thanks to booking apps that make it incredibly easy to 'book an Uber' with a few taps on your phone.

What's the difference between a taxi and a PHV?

To clarify, a taxi can be hailed from the street without a prior booking, while a PHV is booked in advance (such as an Uber, Gett, or an airport taxi from your local taxi firm). Taxis use a fare meter with rates set by the council (which is also responsible for issuing licences and permits), while PHVs can set their own fares.

Is there a demand for taxi drivers?

With more people choosing to leave the car at home, seasonal demand, and airport shuttle taxis providing an alternative to navigating the M25, demand for taxi services has never been higher. The slight drop in the number of taxis on the road over the last 12 months also suggests that demand is consistently outstripping supply. This is one of the best times for anyone thinking of becoming a taxi driver to take the next steps.

Can I make money as a taxi driver?

The National Careers Service estimates that taxi drivers can earn up to £30k, which is around the national average wage. Earnings depend on how many hours you work, when you work, where you operate, the number of journeys completed, and fare levels. Your profits also depend on your outgoings.

What are the benefits of becoming a taxi driver?

Becoming a taxi driver has its pros and cons. Benefits include a flexible work schedule, as you're no longer tied to the 9-5 routine and can work the hours you choose. As a self-employed individual, you have greater control over your business and career path, even if you subcontract to an established taxi firm. It's also a career with fewer barriers to entry than many other trades and is ideal if you want to change direction later in life. Finally, your earning potential is in your hands - the more hours you work, the more you can earn.

However, there are drawbacks. Licensing requirements can be time-consuming, whether you opt for a Hackney cab licence or a private hire licence. Expenses such as fuel, maintenance, and vehicle costs can mount up quickly, and you may need to work longer hours than you'd like to achieve a comfortable income after expenses.

Working night shifts can be lonely, and there are risks, particularly in inner-city areas. Even a minor accident can put you out of action, stopping your income until you're back on the road.

So, if you're considering becoming a taxi driver, it's best to review the process carefully and go in with your eyes wide open.

What are taxi driver requirements in the UK?

Once you've decided to drive a taxi for a living, it's time to make sure you have everything in order before you start plying for trade.

1. How's your health? Medical standards for taxi drivers are higher than those for ordinary car drivers. When applying for a taxi licence, you must disclose any medical issues that could affect your ability to drive and ensure your eyesight meets requirements. You must complete a DVLA Group 2 medical form with your GP. Once approved, a medical certificate is issued, valid for five years if you're under 65, or one year if you're over 65, unless otherwise stated. Check relevant medical conditions here.
2. Your driving experience You must hold a full category B UK driving licence (or equivalent). Most councils require you to have held your licence for at least 12 months. Some councils may request a DVLA D796 mandate form, though many now use electronic checks. You may also need to pass a taxi or private hire assessment test. Hackney carriage applicants usually require an additional wheelchair assessment.
3. Knowing your way around London black cab drivers must pass the Knowledge, memorising 320 routes, 25,000 streets, and 20,000 landmarks within six miles of Charing Cross. This typically takes 2-4 years. Elsewhere, councils may require proof of local area knowledge.

How to obtain a taxi driver licence in the UK

Licensing routes vary by location. In London, applications are handled by Transport for London (TfL). Elsewhere, you will need to apply through your local council. Creating a checklist of requirements will help ensure a smooth application process.

The Disclosure and Barring Service (DBS) check

DBS checks identify any convictions or cautions that could prevent you from working with the public. Taxi and PHV drivers must consent to an enhanced DBS check. A criminal conviction does not automatically prevent you from being licensed.

You cannot request an enhanced DBS check yourself, but you can request a basic disclosure from Disclosure Scotland. This costs around £25 and typically takes two weeks.

Drivers must also subscribe to the DBS Update Service within 19 days of receiving their certificate.

Other things to consider

Beyond legal requirements, customer service is vital. Good communication skills and the ability to handle difficult situations are essential, particularly for late-night work. Vehicle choice also affects earnings; executive vehicles can attract higher fares but come with higher costs. Some drivers reduce expenses by sharing a vehicle and splitting shifts.

Additional costs include congestion and ULEZ charges, servicing, and fleet fees if you're using a company vehicle.

Book in to do safeguarding training

Many councils require taxi drivers to complete safeguarding training. Without certification, you may not be permitted to operate. The training helps drivers identify and report concerns related to child exploitation and trafficking.

How to become an Uber driver

To drive for Uber or similar apps, you need a private hire licence, must be at least 21 years old, hold a valid UK or EU driving licence, and pass safety screening. Uber requires vehicles registered in 2008 or newer.

How to find work as a taxi driver

You can work freelance for a local taxi firm, join a ride-hailing app, or work as a salaried employee. Freelancing offers greater earning potential, while employed roles provide more stability.

Our top tips for starting a career as a taxi driver

• Get a card reader - Many customers prefer cashless payments.
• Choose your working hours wisely - Night shifts can be lucrative but come with added risks.
• Use a hands-free kit - Mobile phone use while driving can result in fines or licence loss.
• Get your finances in order - Start-up costs can range from £1,000-£1,400, excluding insurance and vehicle costs.

Taxi driver insurance - Get a 'fare deal' with Park Insurance

Standard car insurance does not cover taxi use, so specialist taxi insurance is essential. Additional cover such as public liability, business interruption, and loss of earnings insurance is also worth considering.

For over 30 years, Park Insurance has provided tailored taxi insurance for private and public hire drivers. Find out more on our taxi insurance page or get an instant, no-obligation quote today.