How do they compare side by side?
The main differences are whether you can hail the car, who sets the price and which licences apply.
| Taxi | Rideshare / private hire | Limo / black car | |
|---|---|---|---|
| Hail in the street | Yes | No, pre-booked only | No, pre-booked only |
| Booking | Street, rank, phone, app | App, phone or website through an operator or platform | Phone, website, account, agent |
| Price | Regulated tariff or meter | Set by the company, quoted up front | Hourly or per trip, agreed ahead |
| UK licences | Hackney driver + vehicle | Private hire driver + vehicle + operator | Private hire operator licence up to 8 passengers; PSV operator licence for 9+ |
| NYC licences | Medallion + TLC driver license | FHV base (high-volume for apps) + TLC driver license | Black car or luxury limousine base + TLC driver license |
Are rideshare drivers employees?
It depends on the country and the facts. In the UK, the Supreme Court unanimously held in 2021 that the Uber drivers in Uber BV v Aslam were workers, entitled to the minimum wage and paid leave.[4]
Which business should you start?
Taxi work suits areas with ranks and street demand and regulated fares; private hire suits pre-booked, airport and account work where you set prices; limo and black car suits corporate and event clients paying for service. Many firms run more than one.
Guides: start a taxi business, start a limo business, launching ride-hailing in Nairobi.
Frequently asked questions
Is Uber a taxi?
Not legally in most places. In the UK it is a private hire operator (pre-booked only); in New York City it is a high-volume for-hire service.
Is a taxi cheaper than rideshare?
It varies by city, time and demand: taxis charge regulated tariffs, while app prices change with demand, so compare on the specific trip.
Sources
Fees and rules change. Each source is the official page we read, with the date we read it; check it before you apply or pay.
- [1] GOV.UK: Operator licences for private hire vehicles (read 2 Nov 2026)
- [2] NYC TLC: High-Volume For-Hire Services (read 2 Nov 2026)
- [3] NYC TLC: Black car bases (read 2 Nov 2026)
- [4] UK Supreme Court: Uber BV v Aslam [2021] UKSC 5, press summary (read 2 Nov 2026)
- [5] GOV.UK: Limousine licensing (read 2 Nov 2026)