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Home » How to start a taxi business
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How to start a taxi business

Business Circle TeamBy Business Circle TeamApril 18, 2026Updated:April 18, 2026No Comments14 Mins Read
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Up to date. Being a taxi driver generally is a very versatile profession. You may resolve when and the way lengthy you wish to work for – particularly in case you are a carer, have additional schooling commitments or if you wish to easy out irregular earnings in case you are, say, you’re an actor or a tradesman.

It’s excellent for these of us who’ve one other profession and wish a “facet hustle” to spice up earnings. World-famous composer Philip Glass used to drive a New York yellow cab. Apparently, many of the Uber drivers in Los Angeles are would-be Hollywood screenwriters.

You’re your individual boss, deciding what number of hours and what time of the day or night time you wish to work. And, as of 2024, there are 313,000 licensed taxis and minicabs in England (GOV.UK, 2025), an 8.2% improve since 2023, that means there’s rising competitors, but additionally quite a lot of demand.

>See additionally: 15 finest UK facet hustles – and the way a lot you might earn – Small Enterprise UK

How you can turn into a minicab driver

A taxi driver is a black cab/hackney carriage driver, however a minicab drivers are non-public rent drivers. The important distinction between being a taxi driver and a minicab driver is that non-public rent autos (minicab) have to be booked upfront via a licensed operator and can’t be hailed down on the street.

One other distinction is {that a} taxi can sit on a rank or be hailed on the road, and settle for bookings from any supply, whereas a non-public rent car can’t.

What are the necessities to turn into a minicab driver?

  • You have to be at the very least 21 years previous
  • Maintain a UK licence for 3 years in case you are planning to drive in London, however you solely must have had a licence for one yr exterior of London
  • Have a authorized proper to dwell and work within the UK

What paperwork do I must turn into a minicab driver?

Identification You will want to offer two paperwork as proof of identification, akin to a nationwide ID card or passport.

PHV (Non-public Rent Automobile) licence A personal rent car (PHV) is outlined as “any car that may carry as much as 8 passengers and is out there for rent with a driver”. All licensed non-public rent drivers should work for a licensed non-public rent operator.


How you can get a PHV licence to drive a minicab

Up till 2016, the Driver and Automobile Requirements Company (DVSA) provided a non-statutory scheme to many drivers and native authorities who required their taxi drivers to be assessed.

Quite a lot of driving colleges and associations now present this service to native authorities.

To acquire a PHV licence, you’ll need to satisfy particular necessities:

  • Endure a Group 2 medical examination to verify you’re medically match. This consists of an eyesight check and reporting any present medical situations, akin to diabetes or for those who’ve had a coronary heart assault. Some authorities enable businesses to certify driver well being, however others insist on a certificates out of your precise GP
  • Some native authorities could require certification, akin to an NVQ Certificates in Highway Passenger Automobile Driving (Taxi and Non-public Rent), which take as much as six months to go and which is generally theoretical
  • Some require you to go a topographical or native space data expertise evaluation
  • In London additionally, you will must take a further SERU (Security, Equality and Regulatory Understanding) check, which is the private-hire car model of the well-known London black cab “data” check and is equally administered by Transport for London. And, like The Information, this SERU check can take as much as three years to go
  • Clear an enhanced felony report Disclosure and Barring Service (DBS) test. A full DBS test can take as much as six weeks to return via. You even have to enroll to the DBS replace service.

How lengthy does it take to turn into a minicab driver?

Broadly talking, even making use of to turn into a minicab driver up so far takes round six months and prices as much as £1,500.

Your native authority then assesses your PHV licence utility as soon as it has been submitted. The native authority can then take something between six to eighteen months to decide in your licence.

So we are actually taking a look at a year-long utility course of.

And that’s assuming you go with flying colors – if there are any points, akin to a earlier felony conviction or medical issues, your licence utility might be referred to a licensing committee listening to, which might take something as much as an extra six months to even set a date. A bit like a Justice of the Peace’s court docket however on a civil regulation foundation, you must justify your PHV licence utility in individual.

Do I’ve to purchase my very own minicab?

As soon as your PHV licence has been granted, you’ve two choices: you might both use your individual automobile or you’ll be able to work for a minicab operator which supplies a car.

Shopping for your individual minicab can price something between £35,000 and £75,000 to get automobile on the highway, particularly if you wish to drive an electrical car.

You might also need or want to suit out your car, whether or not it’s purchased outright or leased, with a Covid display or CCTV on your personal security.

Dave Lawrie of the Nationwide Non-public Rent & Taxi Affiliation (NPHTA) means that beginner drivers ought to reduce their enamel working for an present minicab agency.

Shopping for a automobile even on the decrease finish “is a hell of a dedication to do for a few weeks after which resolve you don’t even just like the job. So, check the water first”, says Lawrie.

How a lot can I earn as a minicab driver?

As of 2026, the typical base wage for taxi drivers within the UK is £27,432 per yr (Certainly, 2026).

However for those who function what you are promoting in London, you might earn as much as £50,904 as a self-employed taxi driver (Certainly, 2026).

What’s good about being a minicab driver?

Many individuals are taxi drivers alongside different jobs as a facet hustle, whether or not it’s being a tradesman akin to an electrician or a plumber, a trainer or, in a single case, a solicitor.

In response to Dave Lawrie, being a minicab driver could be extraordinarily rewarding – maybe not financially however due to the service you present, whether or not that’s getting the aged to hospital appointments or serving to the disabled with their purchasing or ferrying youngsters with particular wants to high school. And even getting nurses to the hospitals they work in.

“I might emphasise the non-public reward and the satisfaction it provides,” says Lawrie. “The appreciation you get for providing akin to service outweighs the cash facet. It’s about placing one thing again into the group.”

How you can turn into an Addison Lee driver

Addison Lee is seen as London’s premier minicab agency with over 5,000 vehicles in central London and carries out over 20,000 jobs day by day and is answerable for over 10 million passengers annually within the capital.

Its positions vary from courier and black taxi drivers to electrical car drivers and drivers on its government fleet.

What paperwork do I want?

  • You’ll must have held a DVLA, Northern Eire or EEA driving licence for at the very least three years
  • A PCO licence, which is licenced by the division of Transport for London. That is required if you wish to work as a taxi driver, minicab driver or chauffeur in London. To use for the PCO licence you have to be at the very least 21 years previous and meet the required medical requirements, which you’ll verify by finishing a typical check-up together with your GP
  • You could additionally go a felony report test
  • Two different types of identification

Does Addison Lee provide coaching?

Earlier than you apply, there isn’t any prior obligatory coaching required, however you want to have the ability to communicate, learn and perceive English to speak successfully with passengers.

Addison Lee supplies a variety of coaching in-house to assist drivers really feel assured and supply the very best service attainable to prospects. This consists of sensible coaching, akin to preparation and mock exams for obligatory SERU assessments, and it additionally has robust relationships with a number of coaching faculties.

Addison Lee additionally supplies extra coaching in partnership with UN Girls UK, informing drivers about passenger security.

How a lot can I anticipate to earn as an Addison Lee driver?

Drivers on Addison Lee’s company fleet have seen their earnings overtake pre-pandemic ranges, the corporate says, they usually now common £1,168 per week.

Addison Lee ensures new drivers obtain a minimal of £5,000 earnings of their first month driving, adopted by a £1,200 money bonus after 12 weeks.

The agency additionally affords a pension, topping up 5 per cent of qualifying pensionable earnings via a 3 per cent contribution, in addition to offering sick and vacation pay. The corporate additionally affords a rewards bundle, together with low cost codes and cinema tickets.

How you can turn into a black cab taxi driver

The black taxi is an iconic picture of London however to turn into a cabbie is a demanding course of, which might take as much as 4 years and entails passing one of the vital tough exams attainable – often called The Information – and checks your encyclopaedic understanding of each avenue within the capital.

The most recent Transport for London figures present a lower of taxi driver licences in London, now 15,964 (a lower of practically 600 from the earlier yr), of which 14,468 maintain All London licences.

are round 24,000 taxi drivers in London, with about 21,000 inexperienced badge All London drivers and about 3,000 yellow badge Suburban drivers.

How you can turn into a taxi driver

Named after a midsized horse which French ladies used to experience side-saddle – and extra usually grew to become synonymous as a horse and carriage for rent – the method of turning into what’s often called a hackney carriage driver begins while you apply to your native council for a taxi driving licence.

At this stage, you could:

  • Be at the very least 21 years previous and have held your full GB or Northern Eire driving licence for at the very least one yr
  • You might have the suitable to dwell and work within the UK
  • Show you’re a “match and correct individual”, which entails having an enhanced felony information test from the Disclosure and Barring Service (DBS)
  • Taking a medical examination to satisfy the Driver and Automobile Licensing Company (DVLA) Group 2 medical requirements

If you’re in London and wish to drive an iconic London black cab, you’ll need to use to Transport for London (TfL) to acquire a Public Carriage Workplace (PCO) licence to drive a taxi. This PCO licence allows you to work as both a non-public rent car minicab driver or a black taxi driver.

What do I must acquire a PCO licence?

  • You could have a accomplished Group 2 medical kind issued by both your individual physician or an accredited physique to guarantee the licensing authority that you’re medically match to drive a licensed car
  • You could have had a driving licence for at the very least three years

Taxi Evaluation of Driving Skill

All new drivers are required to finish the Taxi Evaluation of Driving Skill. That is a sophisticated driving evaluation, throughout which knowledgeable driving examiner will mark your driving potential and elegance, in addition to your potential to carry out varied on a regular basis taxi manoeuvres, akin to figuring out secure stopping factors from the place to choose up or set down passengers and easy methods to keep away from puddles.

Additionally, you will be requested plenty of driving principle questions, together with some on the related licensing laws and native situations.

Passing ‘the Information’

All London drivers, also referred to as “Inexperienced Badge” drivers, want an in depth All London Information of London inside a six-mile radius of Charing Cross. To start with there are 320 routes or “runs” to study, together with all of the locations of curiosity and necessary landmarks on and round these runs. Factors embody landmarks akin to golf equipment, hospitals, resorts, theatres, embassies, stations and historic buildings. You’ll want a duplicate of the Information to studying the Information of London, also referred to as the Blue Guide.

Candidates for the All London Information should study the suburban routes from central London to the suburbs, and to and from Heathrow and London Metropolis airports.

It takes between two to 4 years to study and go “the Information”, which is able to imply appreciable gumption in your half.

Round 70 per cent of scholars coaching to turn into licensed London taxi drivers drop out of the All London Information testing course of.

Inexperienced badge vs yellow badge

Really, there are two forms of badges for drivers in London.

Should you don’t wish to turn into a Better London taxi driver, you too can turn into a taxi driver in one of many 9 suburban sectors. The method of turning into a Suburban taxi driver is just like the All London Information, besides suburban drivers can solely be hailed of their chosen sector. Profitable Suburban Information candidates are given a yellow badge.

How you can turn into an Uber driver

The method for turning into an Uber driver is identical as acquiring a normal car licence.

Uber affords a information on get a non-public rent licence within the UK, in addition to particularly in London.

Signal as much as turn into an Uber driver on-line

  • Join on-line. You’ll must obtain the Uber app onto your smartphone or different system
  • Add your paperwork:
  • A sound UK driver’s licence
  • Be at the very least 21 years previous
  • Non-public rent insurance coverage permitting you to move passengers for rent and reward
  • Financial institution assertion for the checking account that will probably be used to obtain funds from Uber, which must be underneath your individual title or a enterprise which you’re an proprietor of
  • Driver profile picture
  • Full Edume digital onboarding course

How lengthy do I must have been driving for?

The variety of years’ expertise it’s worthwhile to have varies relying on the town you wish to drive an Uber automobile in – for instance, in London, a minimal of three years’ driving expertise is required.

Do I’ve to personal my very own Uber car?

No, you don’t. Uber affords varied choices for acquiring qualifying autos, together with flexi-lease, leasing and rental via Uber’s personal Automobile Options programme.

Uber additionally has a sister firm known as PartnerPoint, which affords offers on renting and leasing vehicles – nonetheless, taking place this route could be dear and will solely be used in case you are testing the water.

Should you plan to make use of your individual automobile, your car have to be both hybrid or ZEC (zero emissions succesful) and have a 2008 registration or later.

What different paperwork will I want?

Private paperwork

  • Nationwide Insurance coverage (NI) quantity
  • Authentic plastic UK driving licence
  • Digital counterpart code
  • PCO Paper Licence (you’ll must carry this with you to your scheduled go to)

Automobile paperwork

  • PHV licence
  • Logbook/new keepers slip
  • MOT (issued inside the earlier six months)
  • Non-public rent insurance coverage certificates

Changing into an Uber driver in London

Should you’re concerned about turning into an Uber driver in London, there are some particular necessities for working as an Uber driver within the capital:

Along with different customary Uber necessities, as we’ve got seen, additionally, you will must have a Transport for London (TfL) PHV licence or a Public Carriage Workplace (PCO) licence.

Uber affords in-person assist for acquiring your PCO licence via its Uber Ignition programme, which helps you negotiate the paperwork.

How a lot can an Uber driver make?

Full-time Uber drivers within the UK earn on common £28,791 a yr, in response to Certainly (2026).

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