The rules on cross-border transport are well known in the taxi industry, but are passengers aware of the licensing loopholes?

In recent years, cross-border taxi services have become a significant feature of the UK taxi and private hire vehicle (PHV) landscape. These services, where private hire vehicles and taxis operate across regional boundaries, offer passengers an expanded range of options.

Potential benefits to society include increased accessibility, especially in underserved areas, which in turn often results in lower prices. However, these benefits come with a number of challenges that can affect the passenger experience in unexpected ways.

One of the main attractions of cross-border services for passengers is the extended reach. Traditional taxi services, especially cabs, are often restricted by geographical licensing restrictions, meaning they can only take passengers within their licensed area. Cross-border services, however, are not restricted by these restrictions, allowing them to operate more freely across regions. This flexibility can be beneficial to passengers in areas where local taxi availability is limited, providing passengers with more options. However, in regions where local taxi drivers already offer good reach, cross-border can saturate work and earnings, reducing the value of the work. In the long term, this will drive local drivers out of the industry.

A saturated market, however, can be a short-term benefit to passengers as local operators push up travel prices to compete in a crowded market. In regions where additional costs for safety or accessibility are mandatory, there is a limit to how low a ticket price can go before the work becomes unfeasible.

Understandably, many passengers are unaware of the regulatory nuances of cross-border taxi services until they encounter a problem. For example, a passenger may be surprised to see a vehicle arriving with a license plate from another area. This can raise concerns about the legality and safety of the service, especially if local vehicles have to adhere to certain standards.

Lack of awareness can also extend to the complaints process. If something goes wrong during a journey, passengers may find themselves having to complain to a licensing authority that may be hundreds of miles away from where they started their journey. This distance can make the complaints process more complicated and less efficient, as different areas may have different standards and procedures for handling such issues.

A significant concern with cross-border regulations is the potential for bypassing local regulations. Each licensing authority sets its own rules and standards, which can vary significantly from region to region. These regulations cover a range of factors, including vehicle standards, accessibility and customer service requirements. When a vehicle travels outside its licensed area, it may not be subject to the same restrictions, which can lead to inconsistent service quality and passenger safety.

For example, some areas mandate that vehicles be fitted with CCTV for the safety of both the driver and passengers. However, a vehicle crossing the border may not have this feature if it is not required in the area it is registered in. This discrepancy can leave passengers vulnerable and without the protection they might expect from a local service.

While cross-border rentals can offer passengers some short-term benefits, they also come with a number of challenges that passengers need to be aware of. From potential cost savings to regulatory loopholes, the landscape is complex. Passengers should be informed of the potential pitfalls and benefits, and authorities should work on a regulatory framework that protects all users of these increasingly common services.