Supporting the transition to a fully EV taxi fleet is critical to the decarbonisation of UK cities, says Sam Pooke, senior public affairs manager at Freenow UK.

The transport industry is tackling its environmental impact by looking at ways to reduce global emissions and air pollution. In the taxi sector, we are pursuing a cleaner and more sustainable future by championing the shift towards electric vehicles as a practical solution. More specifically, accelerating the transition of taxi fleets to EV taxis has the potential to enhance air quality and lower emissions within urban environments.

The UK government plans to end the sale of new petrol and diesel cars by 2035. Despite this, the taxi industry must work collectively to help drivers prepare for this phase-out, while promoting the switch to EVs. Ultimately, with a widely available fleet of electric taxis, drivers can benefit beyond just the immediate impact on air quality and emissions, enjoying the advantages of longer-term cost savings and greater regulatory support.

The barriers hindering the greater uptake of EVs

While the transition to electric vehicles within the taxi industry is a step forward on the journey to a greener future for urban mobility, the shift poses challenges for drivers. These hurdles include the lack of fully electric black cab models and an insufficient EV charging infrastructure that supports those who drive for living.

Currently, the costs of running an EV cab remain considerably high for drivers, hence the need for change. In a new study by Freenow, analysing the recent mayoral elections in London, nine in 10 black cab drivers said that making EV taxis more affordable is essential in supporting them in making the transition. Almost three-quarters of those quizzed stated the cost of vehicles has impacted them financially. The average price of purchasing a zero-emission capable black cab starts from £70,000 – a major expense for any driver. But black cab drivers have very limited choices when it comes to the type of vehicle and current requirements, such as the ability to conduct a turning circle or the need for larger battery capacities, which are a roadblock for the availability of fully electric cabs in the capital and beyond.

Additionally, ensuring affordable and fair access to fast EV charging stations remains an obstacle for taxi drivers, especially in city centres such as London. These charging points are predominantly situated in affluent neighbourhoods of the capital and are often far from the residential areas where cab drivers live, resulting in increased travel time and delays during their journeys.

The existing 20% VAT imposed on public charging points has dissuaded many drivers, leading them to opt for private home charging options instead – and only if they can afford the installation. A revision of the VAT rates on public charging point usage would substantially impact taxi drivers’ shift toward electric vehicles. It also underscores the necessity for increased targeted and governmental interventions to accelerate the adoption of EVs.

The incentives in place to support drivers

The Government’s current Plug-In Taxi Grant, which provides grants to cab drivers looking to switch to electric models, has been extended into next year, albeit at a reduced rate. The electric taxi market has grown rapidly since the grant’s introduction – in London alone, over half of black cabs are now zero emission capable. Despite this extension, there is no indication of what the plans are beyond 2025, or what support will remain to support drivers looking to advance on their sustainability journey.

In response, Freenow’s EV subsidy supports the sector’s growth and champions the move towards a sustainable future, encouraging drivers to transition to EVs in alignment with the UK’s national net zero targets.

Local authorities should offer drivers enhanced value for EVs through measures such as the strategic deployment of charging points and access schemes in the form of wider low- and zero-emission zones. Arguably, addressing the financial pressures drivers face is just one factor, as the VAT discrepancy and overall playing field must be levelled so that drivers are supported with provisions for both on-street and home charging.

More targeted support is required to support the right infrastructure and help enable the taxi industry to continue to operate and grow sustainably. While the extension of the deadline for phasing out new petrol and diesel vehicles from 2030 to 2035 provides more time for the UK to prepare for an electric future, the current challenges that black cab drivers are facing cannot be ignored and must be tackled if the Mayor of London is serious about its mission to decarbonise the sector. Overcoming these through collaborative policies and technological advancements can promote the effective integration of fully electric taxis with public transport, fostering a more environmentally friendly and sustainable future.