Producing a supply & demand study for taxi and private hire vehicles

The taxi and private hire market has been subject to significant change in recent years, particularly with the launch of on-demand app based services in the private hire market. This disruptive technology changes the way in which the public use taxi and private hire services.

Successes and outcomes:

The purpose of the study was to provide Transport for London (TfL) with an evidence based understanding of the size of the taxi and private hire market.

TfL engaged Steer in 2016-17 to undertake both quantitative and qualitative research of the taxi and private hire market. The research included:

• Driver diaries and working pattern surveys.
• On-street survey of London residents and visitors.
• Count and wait time surveys for taxi ranks and on-street hails.
• Mystery traveller surveys.
• Disabled passenger qualitative research.
• Impact of apps qualitative research.
• App use surveys.
• Ridesharing focus groups.

Our research quantified the size of the current taxi and private hire market and provided an analysis of key changes since research of this type was commissioned in 2009. Key analysis included:

• Changes in the volume of trips between taxis and private hire.
• Changes in the method of hiring vehicles (hailing, telephone booking, app booking).
• Changes in the volume of trips by origin and destination (central/inner and outer London).
• Changes in the working patterns of drivers.
• Changes in fares.
• Changes in the type of users and journey purposes.

Our research highlighted substantive shifts in the taxi and private hire market in recent years, with a decline in taxi trips mirrored by a significant growth in private hire trips.