What is the difference between a taxi and a private hire?

Taxis and private hire vehicles are major modes of transportation in the UK. People book and take millions of rides daily. This guide will explore the differences between the two from a customer's perspective, and finally, offer insights into the earning potential for drivers.

Scroll down and learn about differences to help you select an ideal vehicle for your trip. 

Booking and Fare Difference

Taxi and private hire refer to different aspects of the taxi industry with distinct regulations, booking, and fares.

Taxi hire

Taxi and private hire refer to different aspects of the taxi industry with distinct regulations, booking, and fares.

Private hire 

Carry out pre-booked trips through licensed private operators. The fare is fixed and may vary from location to location.

Note: It is criminal to pick up passengers without pre-booking as a private hire. The authority may invalidate the driver's taxi insurance if they break the rule.

Taxis vs. Private Hire Vehicles in terms of appearance

It is easy to differentiate the local taxis from the private hires in terms of appearance

Taxi Hire

1. White or blue license plate with black text displayed at taxi rears.
2. A white or blue window card is present on the front portion of the windscreen.
3. The taxi has a lit roof sign that shows it is available.
4. The public taxi plate shows the vehicle license number. 

Private hire

1. A yellow license plate with black text is displayed at the rear of the private hire taxi.
2. A yellow window card is present on the front portion of the windshield.  
3. Don’t have a roof sign. Always pre-booked by private taxi operators.
4. Both vehicle license numbers and operator details are mentioned on the vehicle plate.

Pros and cons of taxi hire and private hire

There are certain pros and cons to taxis and private hires. However, both are on-demand, comfortable and have flexible potential.

Pros and cons of taxi hire

Pros

1. Taxi drivers hail their taxis anywhere in the street or taxi ranks and find out their passengers.
2. Carry a ride at any time at any location with and without pre-booking.
3. A regulated fare calculator ensures transparent pricing.

Cons

1. A licensed and insured vehicle is required to become a taxi driver.
2. More expenses like vehicle maintenance, licensing, etc.
3. Allow taxis to operate in certain licensed areas only.

Pros and cons of Private hire 

Pros

1. Easily find the passengers via a mobile app or website.
2. Do not need to navigate from street to street to find the passengers.
3. Allow private hire to operate in multiple areas without the restriction of a limited licensed location.

Cons

1. Earning potential directly depends on the number of bookings.
2. Operators also charge commissions that reduce the perks.
3. Private hires do not pick up passengers from the street.

Income potential for taxi drivers vs. private hire drivers

Both taxi and private-hire drivers have the opportunity to earn a handsome amount. However, private hires have more earning potential than taxi drivers.

Taxi drivers

The local authority council regulates the taxi fares. Drivers are not allowed to charge more than the amount displayed on the meter. 

Private hire drivers 

PHV drivers have flexible ways to earn money depending on their vehicle type and working hours. The number of bookings, peak working hours surcharges, and other perks maximize the driver's earnings.

Conclusion

Taxis and private hires are crucial to fulfilling transportation demands. Taxi hires are easily available on the street and offer quick services to navigate anywhere across the city. Meanwhile, private hires also provide flexibility with competitive charges and minimize travel hassles. So understanding the difference between taxi and private hire assists passengers in choosing the right traveling vehicle and drivers to find an ideal career.