Exploring Cross-Bordering in Private Hire Vehicles: How the Deregulation Act Reshapes Licensing, Subcontracting, and Public Safety for PHV Services

Cross-Bordering in Private Hire Vehicle Operations

The deregulation of Private Hire Vehicle (PHV) licensing, allowing "cross-bordering" or subcontracting across licensing authorities, has fundamentally reshaped how bookings are managed. Previously, operators were restricted to accepting bookings only within their licensed authority. However, the Deregulation Act has now enabled cross-bordering, allowing PHV operators to subcontract jobs to other operators outside their licensing area.

Key Changes under the Deregulation Act

Under previous regulations, private hire operators were restricted from subcontracting to other authorities’ licensees, limiting their ability to manage bookings efficiently. Passengers, especially in areas with fewer private hire vehicles (PHVs), often had limited options and longer wait times. With the introduction of the Deregulation Act, operators now have the flexibility to subcontract to licensees across different authorities, allowing them to fulfill bookings more readily and offer passengers greater convenience and accessibility.

This change is intended to streamline services and prevent delays for passengers, particularly for those with mobility needs or assistance requirements.

Public Safety and Service Accessibility

Before the Act, passengers sometimes faced long wait times or had to find alternate transportation when a local operator lacked availability. This posed a safety risk for individuals with assistance dogs or in wheelchairs, who could not readily seek alternatives.

The Deregulation Act now allows any operator to subcontract across jurisdictional lines, creating a broader network of available vehicles and reducing passenger wait times and service limitations.

Misconceptions Around "Loopholes"

It’s essential to clarify that cross-bordering is not a loophole in the law. Often misunderstood, cross-bordering was explicitly included by the Government to improve transport efficiency. A loophole implies an unintentional oversight, whereas the cross-bordering provision was an intentional measure.

Section 75: Right to Roam

Section 75 of the Deregulation Act grants Private Hire Vehicles the “right to roam,” allowing licensed PHVs to operate trips that start, end, or pass through any area in the country. This flexibility has long been used for airport pickups and long-distance bookings.

Uniform Standards Sought by Local Authorities

To enhance consistency and safety, councils are lobbying for uniform national licensing standards. Local governments advocate for standardized checks on license applicants across all authorities, ensuring uniform safety and service levels for passengers nationwide.