The rise of the electric cabbie

A new campaign, Cabbies for the Climate, is challenging outdated perceptions about London’s black-cab drivers and their stance on environmental issues. Sam Pooke, of FREENOW UK, explains all.

Backed by the Licensed Taxi Drivers’ Association (LTDA) and climate charity Possible, the initiative aims to accelerate the transition of London’s iconic taxi fleet to electric vehicles.

The taxi industry is already making significant strides in the transition to electric vehicles (EVs). During 2023, 70% of our UK taxi trips were conducted with the range-extended electric black cabs, the cleanest model on the market*.

Despite this positive momentum, there are still critical hurdles to overcome if we want to see the full electrification of London’s taxi fleet, namely, reducing the cost of vehicles and improving the charging network. Targeted government intervention will be key to achieving both.

So, how can the taxi industry pave the way for a more sustainable future?

Helping the planet one trip at a time

Taxis play a vital role in reducing traffic congestion and improving air quality in cities. By providing an efficient alternative to private car use, they can reduce the number of vehicles on the road by up to 75%. This is particularly important in heavily populated urban areas like London. In Europe, electric cars emit 66–69% less than petrol and diesel cars, making the switch to EVs a crucial step in fighting climate change.

London’s air quality has improved significantly since 2016, and taxis have contributed to this positive change, with over 54% (8,299) of London’s licensed taxis now being electric. This uplift has also been driven by customer demand, with 51% of our passengers in London preferring electric cabs, making it clear that the public’s appetite for cleaner transport options is growing.

EVs are winning drivers’ hearts

The latest data from the Licensed Taxi Drivers’ Association (LTDA) and climate charity, Possible, shows a strong preference among taxi drivers for EVs, with 98% of those who have switched saying they wouldn’t go back to diesel – thanks largely to the significant cost benefits. With fewer parts in an EV, there are significant savings on servicing and maintenance costs. Additionally, charging an EV at home overnight can cost less than £150 per year, while a petrol car can cost over £1,000 per year.

A call for Governmental action

One of the biggest barriers to adopting EVs in the taxi sector is the high cost of vehicles. The only new taxi model currently available for licensing in London is the LEVC TX, a zero-emission capable electric vehicle. While it’s an iconic design, it comes with a hefty price tag, which many drivers struggle to afford. Our research has shown that nearly all black cab drivers (94%) say the cost of vehicles has impacted them financially, and with the new green taxis costing upwards of £73,000 each**, it’s not as easy to make the switch.

The government needs to step in with more support. the Plug-in Taxi Grant (PiTG) has been crucial in helping drivers make the switch to EVs. However, its reduction from £7,500 to £6,000 has slowed down new vehicle purchases. As we approach the 2035 deadline for all new cars and vans to be zero emission, extending this grant through March 2026 will be critical in maintaining the momentum.

Additionally, the government should support the sector by extending VAT exemptions for taxis. Currently, adapted vehicles for disabled people are VAT-exempt, but taxis, which play a key role in providing accessible transport, are not. Expanding this exemption would help keep fares affordable for all passengers and make it easier for drivers to bear the cost of EVs.

A sustainable future

The transition to electric taxis is not only crucial for achieving net-zero targets but also for ensuring a sustainable future for the taxi sector itself.

If the government and TfL take proactive steps, such as extending the PiTG and improving access to charging points, London’s licensed taxi sector can continue to lead the way nationwide in clean, accessible transportation, benefiting not just drivers but all citizens too, helping the UK to facilitate this change nationwide.

*FREENOW Sustainability Report, 2023

**FREENOW conducted an internal survey with 762 black cab drivers in March 2024

Previous articleA holistic approach to sustainability: connecting planet, people & profitability