Private hire and hackney carriage licensing: open letter to local authorities
Guidance for all licensing authorities to help them in understanding the effect certain licensing conditions can have on competition and passenger welfare.
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Hackney carriage (taxi) and private hire licensing conditions play a crucial role in making sure passengers are treated fairly, and that passengers and other road users are safe.
However, the Competition and Markets Authority’s (CMA) experience of competition in markets and how it can enhance consumer welfare shows that some licensing conditions may restrict or distort competition, potentially resulting in passengers paying higher fares or receiving a lower quality of service.
The CMA has written an open letter to local authorities in England and Wales to highlight these issues. The CMA has also produced guidance which has been put together to help local authorities take the potential unintended negative consequences for consumers into account when reviewing or amending licensing conditions.