It’s time to recharge the shift to electric taxis
Danny O’Gorman, UK and Ireland general manager of taxi-hailing service Freenow, warns that shrinking incentives and rising costs could threaten cabbies’ EV transition, and examines how to boost electric taxi uptake
As of February 2025, 61% of London’s black cab fleet is battery-powered and zero emission capable (ZEC). However, this still falls short of the goal to phase out all fossil-fuel-powered taxis by 2035. According to a recent report by the Centre for London, supported by Freenow, there has been a 39% increase in upfront costs, in cash terms, for purchasing a new cab since 2017, when the new electric Black Cab was launched.
In addition, there’s been a reduction in financial support for taxi drivers. The TfL scrappage scheme, offering cabbies up to £10,000 to scrap old vehicles which weren’t low-emission zone compliant, ended in 2022. Meanwhile, the Department for Transport’s Plug-in Taxi Grant has dropped from £7,500 to £4,000 and will be ended entirely from 2026. This means that from 2017 to 2026, the grant support available for buying a new taxi will plummet from £17,500 to £0, making it very challenging for drivers to switch to EV.
Centre for London and Freenow’s report suggests that more creative financial solutions – such as a government-backed interest-free loan scheme for ZEC taxis, modelled on Scotland’s Switched On Taxi Loan scheme – could help alleviate these concerns and make the transition more financially viable.
Mounting pressures, insufficient support
The push for electrification is driven by a want for better air quality and positive environmental impact. London’s Ultra Low Emission Zone (ULEZ) now covers all boroughs, while other cities across the country are adopting similar clean air policies. Although the pressure to switch is undeniable, the ecosystem supporting this transition is still catching up. Even with the extension of the PiTG for another 12 months, the reduced rate is deterring many drivers from applying, and the upfront cost of an electric taxi remains a significant barrier. With prices often exceeding £75,000 (including finance), the financial risk feels too high for many drivers, especially in today’s economic climate.
The looming infrastructure gaps
The lack of charging infrastructure remains a significant hurdle. While London has 30% of the UK’s publicly available EV charging stations, the latest report from the Centre for London highlights that the availability of rapid chargers is essential for taxis to remain operational and is still too limited. Drivers report that chargers are often occupied or situated in areas that don’t align with their work patterns. To address this, policymakers should prioritise the deployment of rapid and ultra-rapid chargers at high-demand locations, such as taxi ranks and transport hubs, ensuring that drivers can charge efficiently and stay on the road.
A collaborative path forward
Achieving full electrification of the UK’s taxi fleet is a critical step toward meeting national climate targets and improving urban air quality – a goal that the Mayor of London has been a great advocate for. However, to make this a reality, we need a more coordinated approach that takes into consideration the vital role of the taxi trade in facilitating this – one that combines financial incentives, infrastructure development, and ongoing support.
Government, local authorities, and private sector partners like Freenow must work together to ensure that drivers feel empowered rather than burdened by the shift to electric taxis.
Removing these remaining roadblocks won’t be easy, but with the right strategies in place, we can accelerate the transition to a ZEC taxi fleet and ensure that every driver has the support they need to embrace a cleaner, more sustainable future.
