Key facts
Which licences does a one-car taxi business need?
A driver licence and a vehicle licence from the same authority, insurance for hire and reward, and, if you take your own bookings, the booking licence. In England and Wales a private hire driver must either hold a PHV operator licence or drive for a business that has one.[1][4]
Should you work under an operator or take your own bookings?
Working under an operator gets you jobs from day one and avoids the operator licence; you pay rent or commission. Taking your own bookings keeps the whole fare but means finding every customer yourself and holding the booking licence: in New South Wales, drivers who take their own bookings directly from customers are booking service providers and must be authorised.[1][2]
What does one car cost to run each month?
Fill in your own figures; the licence lines come from your council's fee page. In Leeds, for example, the listed driver fees (application, DBS check, customer care course, English test) come to £300 and the vehicle's application, inspection, livery and plate to £243.[3]
| Line | How to estimate |
|---|---|
| Licences | Annual council fees ÷ 12 |
| Insurance | Hire and reward quote ÷ 12 |
| Car | Finance, lease or rent, or depreciation over its licensable years |
| Fuel or charging | Monthly miles × cost per mile |
| Operator rent or commission | If you work under an operator |
| Phone, app and card fees | Including software if you take your own bookings |
| Servicing, tyres, cleaning | From quotes or records |
When should you add a second car?
When you are turning away bookings you could keep, not before. A second car means a second driver, and with them the questions of rent or commission, dispatching jobs between two cars and keeping two sets of documents in date.
See how to recruit taxi drivers and how taxi companies make money.
Frequently asked questions
Can I start a taxi business with just one car?
Yes. You can start by driving for an existing licensed operator, then take your own bookings once you hold the operator licence your area requires.
Do I need dispatch software for one car?
Not to start; a phone works. Software matters once you take bookings from several channels or add a second car.
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 3 Nov 2026)
- [2] NSW Point to Point Transport Commission: Do you need to be authorised? (fact sheet) (read 3 Nov 2026)
- [3] Leeds City Council: Taxi and private hire licensing costs (read 3 Nov 2026)
- [4] GOV.UK: Vehicle licences for taxis or private hire vehicles (read 3 Nov 2026)