Over 250 more private hire car licences will be available in Glasgow in a bid to address demand at busy times, such as weekend evenings.
A review of the trade, commissioned by the council, found that there is “unmet demand” for taxis and some evidence of “potential underprovision of private hire cars”, particularly at peak times.
It was reported the “primary issue is a lack of drivers rather than a lack of vehicles”, but the change “may assist in increasing the number of drivers entering the trade”.
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Glasgow residents have reported struggling to get taxis or private hires after night-outs in the city centre since Covid-19 restrictions were lifted.
Research found private hire drivers have dropped from 5,475 in 2019 to 3,312 in January this year, while the number of taxi drivers has fallen from 2,353 to 1,756 in the same period.
Licensed taxi vehicles have reduced from 1,420 in 2019 to 1,408 in January, with private hire cars dropping from 3,940 to 3,176.
Council policies limited the number of taxi licences to between 1,278 and 1,420 and private hires from 3,195 to 3,759.
Local Transport Projects Ltd, contracted to carry out a review, recommended taxi licences should be “managed to a limit of 1,420” while the private hire licence limit should be lifted to 3,383.
This change would have allowed 188 more private hires to be licensed, however licensing chairman, Cllr Alex Wilson suggested increasing the limit further to 3,450, which means 255 more licences. His proposal was backed by the licensing committee.
Emphasis should be put on encouraging more drivers into the trade to increase supply and reduce unmet demand, Local Transport Projects Ltd’s review concluded.
Cllr Wilson, SNP, said the “excellent” report “does highlight there are deficiencies out there and I think the trade would recognise that as well”.
He added: “We are struggling to get drivers, we are struggling to get vehicles out there. There are problems with the night-time economy. I speak to many of the nightclub owners, bar staff, waitresses etc, and they are struggling to get home.”
Cllr Wilson said there is a “need to get more drivers and vehicles out there” to “boost the trade”. “The private hire trade would benefit from a shot in the arm,” he added.
The cap should be reviewed in three years and “if considered necessary” an interim review could take place in 12 months, the review added.
Cllr Wilson said: “The review process is vital, especially on the back of a major change to Glasgow, which is the Low Emission Zone.
“I think looking at how that will impact the trade out there is something that we really need to consider 12 months down the line.”
Trade representatives at the licensing meeting believed more vehicle licences could make the job unsustainable for current drivers.
One said public transport in the city needed to be improved to ease the demand on taxis and private hires on busy, weekend evenings.
The review found there was evidence that “significant unmet demand is being triggered by a lack of taxi drivers as opposed to a lack of taxis”.
For private hires, it stated while there was “difference of opinion” within the trade, the general suggestion was “the primary issue is a lack of drivers rather than a lack of vehicles”.
However, it added: “Increasing the limit may assist in increasing the number of drivers entering the trade.”
Licences for drivers have shown “continuing decline” since a peak in 2008, with “a reduction of approximately 14% between January 2022 and January 2023 alone”.
Economic downturn, the higher cost of living and post-Covid recovery are given as reasons for the reductions, with “anecdotal evidence” showing drivers began working as parcel and food delivery operators during the pandemic.
Surveys of 10 of Glasgow’s 74 taxi ranks found “for 90.2% of the time, the balance of supply and demand for taxis in Glasgow is either at equilibrium (72.6%) or in a state of excess supply (17.6%)”.
However, periods of “excess demand generally occur during the weekend evening and nighttime periods, largely associated with the Glasgow night-time economy”.
A public attitude survey found more than half of the 405 respondents (52.8%) had reported experiencing issues when getting a taxi or private hire in the last 12 months, up by 23% from a 2018 study.
Around 40% of taxi users recalled “at least one situation where they gave up trying to obtain a taxi due to excessive wait times”.
Consultation was also carried out with operators, with responses representing approximately 50% of the total taxi fleet and around 18% of the private hire fleet. The report stated a “higher response figure would have been preferred”.
Two operators said there were enough taxis/private hires, while two said provision wasn’t sufficient. One operator reported the main issue is “sourcing drivers” to drive idle vehicles “rather than there being a need to licence more vehicles”.
An operator reported the city “does not suffer from a lack of taxi or private hire licences, but that it does suffer from a poor public transport service, particularly during unsocial hours”.
Around 60 responses were received from Glasgow’s Chamber of Commerce, with a majority of stakeholders reporting they do not believe there are adequate taxis (65%) or private hire cars (60%) for their staff/customers.
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