A debate took place in Glasgow over a potential cap on the number of taxis and private hire cars, with business leaders and ride-hailing companies urging its removal to boost the night-time economy, while a drivers' group warns of a potential "flood" of vehicles and a decline in driver earnings.

The current policy limits the number of licensed vehicles in the city to 3,450 which has meant over 680 bids for private hire car licences, from May to the end of 2024, have been rejected.

The policy was last reviewed in 2023, when Glasgow’s licensing committee agreed to make 255 more private hire car licences available to address demand at busy times. However, recent reports by a market research agency and Glasgow Caledonian University's Moffat Centre, commissioned by the council, indicated “the late night city centre economy continues to face a number of post-covid challenges”.

The vehicle restriction has been challenged by businesses and companies such as Uber. They argue the cap stifles growth, limits passenger choice, and discourages late-night visitors.

"A vibrant night-time economy is crucial to our recovery," stated Stuart Patrick, CEO of Glasgow Chamber of Commerce, emphasising that the cap "is actively deterring people from coming to town."

Uber echoed this sentiment, highlighting the potential for increased driver earnings and improved passenger options. "Scrapping the cap would support local businesses, particularly in the night-time economy," an Uber spokesperson said.

However, the Scottish Private Hire Association (SPHA) vehemently opposes the removal of the cap, fearing it would lead to oversaturation and a "race to the bottom" for drivers.

"Massive firms, like Uber, would flood the market," warned Eddie Grice, SPHA General Secretary. "Driver earnings would plummet, inevitably leading to drivers being forced to work more and more hours on the road which in turn gives rise to public safety concerns."

The debate comes as Glasgow City Council's licensing committee considers a potential overhaul of the policy.

While acknowledging the concerns of businesses, committee chair Alex Wilson expressed reluctance to remove the cap entirely.

He stated that feedback from the trade has suggested there are currently enough cars, but drivers are choosing not to work at peak times.

He believes firms should incentivise their drivers to work at these times, which include weekend evenings, adding: “I think the cap has worked well and it is keeping the market competitive.” 

On Wednesday 15 January, the council agreed to conduct a public consultation on the issue, seeking input from all stakeholders.

The outcome of this consultation will ultimately determine whether the city will maintain, adjust, or abolish the existing cap on taxi and private hire vehicles.

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