How Much Does It Cost to Become a Private Hire Driver in 2025?
If you’ve ever thought about becoming a Private Hire driver or a Taxi Driver, you’re not alone. Thousands of people across the UK choose this path every year for the flexibility, the freedom of being your own boss and the chance to earn a solid income on your own schedule.
But if you’re just starting your research, you probably have the same two questions most new drivers ask:
‘How to become a taxi driver?’ and ‘How much does it cost to become a taxi driver?’
It’s worth knowing that there are two main types of licensed drivers: taxi (black cab) drivers and private hire (PHV) drivers.
Taxi drivers are licensed to pick up passengers on the street or from taxi ranks and must complete ‘The Knowledge’, a famously rigorous test of London’s 25,000 streets.
Private hire drivers, on the other hand, can only take pre-booked journeys arranged through licensed operators such as Addison Lee.
This guide breaks down the costs, assessments, and requirements for both routes so you can decide which path suits you best.
How to Become a Taxi Driver or Private Hire Driver
The process is similar across most UK cities, but Transport for London (TfL) oversees licensing in the capital. Here’s a step-by-step guide to what you’ll need to do.
Taxi drivers:
To apply for a taxi driver licence (London Black Cab), you’ll need to complete several key steps before being licensed by TfL. The most significant is The Knowledge of London, a detailed test covering thousands of routes and landmarks, which typically takes 2-4 years to complete. You’ll also need to meet TfL’s medical standards, pass a character check (DBS) and complete a driving test in a purpose-built taxi.
Private Hire drivers:
For those looking for a faster route into driving professionally, the private hire driver (PCO) licence process is more streamlined. It includes medical, topographical and English assessments and can usually be completed within 8-16 weeks.
1. Check You’re Eligible
To apply for a licence, you must:
- Be at least 21 years old
- Have held a full UK, NI, or EU/EEA driving licence for at least 3 years
- Have the right to live and work in the UK
- Meet the DVLA Group 2 medical standards (the same required for lorry and bus drivers)
2. Complete a Medical Examination
Your GP or an approved medical examiner will assess your general health, eyesight and any conditions that might affect safe driving.
Typical cost: £80 – £150.
3. Apply for an Enhanced DBS Check
You’ll need a criminal record check to prove you’re of good character and suitable to transport passengers.
Typical cost: £52 – £54 (plus £16/year if you subscribe to the DBS Update Service).
4. Take the Required Assessments
Depending on your location, these may include:
- Topographical Skills Test – proves you can read maps and plan routes.
- English Language Test – assesses speaking and listening skills.
- SERU Assessment (London only) – covers Safety, Equality and Regulatory Understanding.
Typical cost per test: £36 each.
5. Submit Your Licence Application
Once you have all your documents, submit your application to your local council or TfL. You’ll need to pay both an application fee and a grant of licence fee.
Typical total cost: around £300.
6. Wait for Approval
Processing times vary but 8 to 16 weeks in London is typical. However, it can take longer if your checks or assessments are delayed.
Once approved, you’ll receive your licence and badge, and you’re ready to start driving.
How Much Does It Cost to Become a Taxi Driver or Private Hire Driver?
The total cost of becoming a taxi driver or private hire driver depends on where you apply, but here’s a realistic breakdown for London applicants:
| Item | Estimated Cost |
| DBS disclosure application | £52 (online)
£54 (paper) |
| Licence application fee | £124 |
| Grant of licence fee | £186 |
| Post Office Check and Send | £7.15 |
| Speaking and listening assessment | £36 |
| Topographical assessment | £36 |
| SERU assessment | £36 |
| Medical assessment | £80-£150 |
For drivers applying outside of London, fees can be lower, usually around £350 – £500 in total.
You’ll also need to consider ongoing costs such as insurance, fuel, vehicle maintenance and, if you choose to lease, your vehicle hire payments.
For prospective taxi drivers, costs can be higher due to The Knowledge training and vehicle requirements. Knowledge of London written examination typically costs £200 with the Knowledge of London Appearance coming in at £400. Taxi drivers will also pay for a DSA Hackney Carriage driving test ranging between £92-£111 and purpose-built taxis such as the LEVC TX typically cost £60,000+.
In contrast, private hire drivers can often begin working for around £400–£600 in licensing and test fees. And with operators like Addison Lee providing PCO-ready vehicles, there’s no need for large upfront costs.
How Long Does It Take to Become a Taxi Driver or Private Hire Driver?
The full private hire driver process, from starting your DBS to receiving your licence, usually takes between 3 and 5 months, though this can vary based on:
- How quickly your medical and DBS are processed
- Test booking availability
- Errors or missing documents in your application
Drivers who stay organised and complete their forms early often receive their licence faster.
The taxi route takes considerably longer due to The Knowledge, which can take between 2-4 years to complete.
What Type of Vehicle Can You Drive as a Private Hire Driver?
Once licensed, you can choose between several vehicle types, depending on your operator:
- Standard Saloon: Ideal for private hire and city driving.
- Executive or Business Class Cars: Used by operators like Addison Lee for corporate and airport clients.
- Electric or Hybrid Vehicles: Increasingly popular due to zero-emission zones and fuel savings.
If you’re looking for a PCO-ready car (in London), some operators like Addison Lee offer access to vehicles that already meet TfL’s licensing and insurance requirements, saving you the upfront cost and hassle of buying one yourself.
Pros and Cons of Becoming a Taxi Driver or Private Hire Driver
The Pros
- Flexible hours: Choose when and how much you work.
- Good earning potential: Especially during peak hours or airport runs.
- Independence: Be your own boss and plan your own schedule.
- Meet new people: No two days are ever the same.
The Cons
- Start-up costs: The initial application can be expensive.
- Vehicle upkeep: Maintenance and fuel costs add up.
- Variable income: Demand can fluctuate seasonally.
Taxi vs Private Hire: Key Differences at a Glance
| Criteria | Taxi (Black Cab) | Private Hire (PHV) |
| Licence | Taxi Driver Licence | PCO Licence |
| Booking type | Pre-book, Street hail or rank | Pre-booked only |
| Main requirement | The Knowledge | Medical, DBS, SERU, Topographical |
| Vehicle type | Purpose-built taxi | Saloon, MPV, Executive |
| Cost to qualify | £2,000–£5,000+ | £400–£600 |
| Time to qualify | 2–4 years | 8–16 weeks |
| Work with operator | Independent | Operators like Addison Lee |
Why Drivers Choose Addison Lee
Once you’ve completed your licence and are ready to start driving, the next question is: who should you drive for?
That’s where Addison Lee comes in. With over 5,000 professional drivers across London, Addison Lee offers:
- Guaranteed weekly earnings for new drivers
- PCO-ready cars with insurance and maintenance included
- 24/7 driver support and flexible shift options
- Access to premium passengers and executive jobs
For many, joining Addison Lee means avoiding the stress of managing vehicle costs while benefiting from a trusted, established brand that helps you grow your earnings from day one.
Start Driving with Addison Lee
Becoming a taxi driver or private hire driver can be one of the most flexible and rewarding ways to earn in the UK, whether part-time, full-time or as a career shift.
While there are some upfront costs and paperwork involved, the process is straightforward once you know what to expect.
And when you’re ready to hit the road, Addison Lee can help make the transition smoother with PCO-ready vehicles, guaranteed earnings and professional support at every step.
Start your journey today. Apply to become a driver with Addison Lee.
Related posts
-
Business|Driver|London|News|Sustainability|GRIDSERVE and Addison Lee Strategic Partnership Supports Sustainable Airport Transfers at London Gatwick
Leading on-the-go EV charging provider GRIDSERVE and Addison Lee, London’s largest premium private hire, courier and black taxi provider, have announced a strategic partnership to support the increase of sustainable transport options to and from London Gatwick.
-
Driver|Zero-Emissions Capable vs. Petrol: What’s More Efficient for Private Hire Drivers?
With sustainability and clean air zones now shaping the future of transport, many private hire drivers are weighing up whether switching to a zero-emission capable vehicle, like a hybrid or electric model, makes more sense than sticking with a petrol car.
-
Driver|Time Management and Efficiency Tips for Drivers
Being a private hire driver means your time is money. The more efficiently you manage your hours on the road, the more productive (and profitable) your day becomes. Here are some simple, effective time management tips to help you get the most out of every shift.
-
Driver|Private Hire Industry: Trends, Changes and What Drivers Need to Know
With new technology, changing regulations and shifting customer expectations, the private hire industry is always changing.
-
Driver|Supporting Passengers with Accessibility Needs: A Guide For Private Hire Drivers
Providing an inclusive and accessible service isn’t just about meeting legal requirements. Knowing how to assist passengers with disabilities can make a huge difference to their experience.
-
Driver|A Private Hire Driver’s Guide to Pets in Your Vehicle
Becoming a private hire driver offers a variety of work opportunities, and airport transfers are one of the most rewarding aspects of the job.