Taxi and private hire licensing

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Different licensing authorities (unitary or district/borough councils) have different requirements for the types of vehicle that can be licensed however the main difference between a taxi and a private hire vehicle is how they can be hired.

Taxis (also known as hackney carriages)

A taxi can:

• Be flagged down directly on the street in the district in which it is licensed
• Wait at designated taxi ranks in the district in which it is licensed 
• Be pre-booked by phone, online, or app anywhere in England

Fares:

• A taxi must use a taximeter approved by the local authority to calculate fares within the district in which it is licensed; the meter should not be started until the passenger is in the vehicle and must be stopped when the destination is reached. It should be clearly viewable by the passenger
• If the journey starts or finishes outside the district in which the taxi is licensed, the fare can either be calculated using the taximeter or a pre-agreed set fare prior to the journey commencing

Examples include London's black cabs and licensed taxis operating from taxi ranks in many towns.

Private hire vehicles (PHV)

A private hire vehicle:

• Must be pre-booked through a licensed operator (phone, website, app, or booking office); the vehicle must be licensed in the same district as the operator taking the booking
• Cannot legally pick up passengers who flag it down in the street
• Cannot wait on a taxi rank for customers

Any journey undertaken that is not pre-booked is unlawful and will invalidate the vehicle's insurance.

Fares:

• All fares must be agreed in advance (including those calculated through the booking system or app)
• If the vehicle has a meter, this can be used instead of an agreed fare in advance if the customer agrees

Examples include many Uber, Bolt, and local minicab services.

Drivers

Licensed taxis and private hire vehicles can only be driven by drivers licensed within the same district as the vehicle, and with a licence appropriate to the the vehicle type.

e.g. a licensed PHV driver cannot drive a taxi without a taxi driver licence