Private hire giant Veezu has spoken out strongly against proposals to ban cross-border hiring, warning that such a move would reduce service levels, increase safety risks, and leave many passengers without reliable transport.
The comments were made in evidence submitted to the Transport Select Committee, as the government reviews licensing rules that currently allow drivers licensed in one authority to work in another.
Veezu’s Position
Veezu, which manages over 25 million journeys a year across 58 licensing areas, says cross-border hiring is essential to meeting passenger demand.
- In Sheffield, up to 30% of peak-time bookings are fulfilled by drivers licensed in neighbouring Rotherham and Chesterfield.
- The company insists there is no evidence that cross-border hiring compromises safety.
- Veezu argues that critics of the system are motivated by economic protectionism, rather than passenger welfare.
Instead of banning the practice, Veezu is calling for standardised licensing rules across councils, combined with stronger enforcement to ensure consistent safety standards.
Why It Matters
Cross-border hiring is currently permitted under the so-called “triple lock” system, which requires a driver, vehicle, and operator to all be licensed by the same local authority.
However, campaigners and some councils have long argued that drivers use the system to “licence shop” in cheaper or less strict areas, creating unfair competition and weakening local safety checks.
The government has already signalled it may seek reforms to close this so-called “loophole,” but Veezu says an outright ban would:
- Reduce vehicle availability in many towns and cities.
- Increase passenger wait times and costs.
- Create “transport deserts” in rural and suburban areas.
The Wider Debate
Critics of cross-border hiring raise concerns about:
- Safeguarding: Differences in background checks and local knowledge requirements.
- Uneven standards: Councils impose different vehicle age limits, emissions rules, and licensing fees.
- Local economies: Drivers licensed elsewhere may not contribute to the same community through fees and taxes.
Veezu’s counterargument is that banning cross-border work will worsen access to transport, particularly in areas already struggling with a shortage of licensed drivers.
What’s Next?
The Transport Select Committee will weigh evidence from Veezu and other industry stakeholders as part of its review.
If ministers move to restrict or ban cross-border hiring, the private hire industry could face:
- Major service gaps in some regions.
- Legal battles from operators.
- Renewed pressure for a national licensing framework, something Veezu openly supports.
Sources:
- TaxiPoint – Veezu defends cross-border private hire as essential
- UK Parliament – Written evidence from Veezu Group
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