Glasgow Considers Changing Private Hire Cap Amid Taxi Market Debate

The debate over the private hire vehicle (PHV) cap in Glasgow has sparked concerns about a potential flood of companies like Uber entering the market, which could impact drivers’ earnings and raise safety issues. The Glasgow licensing committee is considering a consultation on the policy.

Business leaders argue that removing the cap could boost the city’s night-time economy by increasing transport options, particularly for late-night visitors. However, the Scottish Private Hire Association (SPHA) believes that an oversaturated market would force drivers to work longer hours, compromising safety and lowering earnings.

Business Leaders Push for Removal of the Cap

Business leaders, including those from Uber, advocate for lifting the cap, claiming it would benefit both drivers and passengers. The company believes more vehicles would provide greater transport options and new earning opportunities for drivers.

A spokesman for Uber stated:

"Scrapping the cap would support local businesses, particularly in the night-time economy in which many businesses have highlighted the unmet demand for more taxis."

Uber argues that removing the cap would address the demand for late-night taxis and help drivers earn more.

SPHA Opposes the Removal of the Cap

The SPHA warns that lifting the cap would flood the market with large firms like Uber, leading to a reduction in drivers’ earnings. Eddie Grice, general secretary of the SPHA, emphasized that this would result in longer working hours for drivers, increasing the risk of safety issues.

Grice stated:

"Massive firms, like Uber, would flood the market if we didn’t have this policy in place. Without the cap, driver earnings would plummet."

The SPHA stresses that more cars on the road would not solve the underlying issue of low earnings for drivers.

Glasgow Licensing Committee Considers Consultation

The Glasgow licensing committee currently limits private hire vehicles to 3,450. The committee rejected over 680 applications for new licenses between May and the end of 2024 due to the cap.

Committee chairman Alex Wilson, SNP, expressed hesitation about removing the limit but noted that the final decision would depend on feedback from a public consultation. He stated:

"I would be reluctant to remove the limit but any decision will be based on the consultation’s findings."

There is consideration of raising the cap to allow more vehicles in the city, though some argue that more vehicles alone won’t solve the issue of driver availability.

Demand for Late-Night Transport

A 2023 review by the council revealed that the issue in Glasgow was not a lack of vehicles, but a shortage of drivers during peak times. Although more vehicles could address unmet demand, experts believe the primary challenge is getting more drivers into the trade.

Stuart Patrick, CEO of Glasgow’s Chamber of Commerce, stated:

"A vibrant night-time economy is crucial to this recovery and ensuring that people can travel to and from the city centre easily and safely is key to its success."

The review pointed out that Glasgow is the only UK city with a cap on private hire vehicles, and it may be hindering the city’s late-night economy.

Diverging Views on Policy Impact

While Uber advocates for lifting the cap to increase transport options, the SPHA warns of the dangers of market oversaturation. More vehicles could lower the value of drivers' services, forcing them to work longer hours to survive. The SPHA argues that this would negatively impact public safety and driver well-being.

A public consultation will allow the city to gather views from trade, hospitality businesses, and the public. This feedback will help shape future decisions about the private hire vehicle cap and its effect on Glasgow’s transport system.

The consultation is expected to explore whether removing or raising the cap would better support the night-time economy, improve transport options, and protect driver earnings and safety.