Debate Magazine

Restricting the Number of Minicab Licenses?

Posted on the 27 June 2015 by Markwadsworth @Mark_Wadsworth

People in charge in London are doing it completely wrong:
A limit should be placed on the number of private minicabs in London to prevent "huge congestion", the capital's outgoing transport chief has said.
1. Why pick on them? All vehicles cause congestion equally.
2. If you restrict the numbers, this is a barrier to entry, so people who get a license will be able to charge higher prices than otherwise, and it destroys the jobs of those refused a license.
3. If you want to get congestion down, what does work is the Congestion Charge.
Sir Peter told LBC radio: "I don't want to wind up with huge congestion on London's streets, created by [minicab drivers] driving around looking for work"
Ooh, the irony.
4. AFAIAA, minicab drivers are not allowed to drive around looking for passengers. They have to wait for a passenger to book one via a minicab office to meet up at a specific point (often outside the minicab office).
5. Neither are minicabs allowed to use the normal taxi rank at the best spots in front of stations etc, the entrenched 'official' taxi drivers have managed to get themselves the exclusive right to these, I'm not aware they've ever had to pay a penny for this privilege.
6. So if he wants less congestion overall, increase the Congestion Charge; if he specifically wants fewer mini cab drivers round looking for work, then either enforce the existing rules properly, or allow them to use taxi-ranks.
7. Surely, there is a natural upper limit of minicabs which are economically viable, which they can fine tune by increasing or decreasing the Congestion Charge, and then the problems all sort themselves out.
8. And any sane person walks or takes the Tube in London, it's about three times quicker than a car and a lot cheaper.


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