The price of diesel, inspections, maintenance, and getting the license all play a role, and the cabs themselves are not cheap. Only certain kinds of cars may be used as cabs and they're quite specialized. I believe the basic model is about £40,000. Taxis are best used if you're sharing with others (they can hold 5).

The high cost of a London "Black Cab" is driven by rigorous licensing requirements, expensive vehicle standards, and high operating costs. To become a driver, one must pass "The Knowledge," a legendary test that requires memorizing 25,000 streets and 100,000 landmarks, a process that takes 3 to 4 years of unpaid study. This expertise commands a premium wage. Secondly, the vehicles themselves must meet strict Transport for London (TfL) specifications, including a tight 25-foot turning circle and full wheelchair accessibility; as of 2026, all new cabs must be Zero-Emission Capable (ZEC), such as the LEVC TX electric taxi, which costs over £70,000 to purchase. Additionally, drivers face high insurance premiums, congestion charges, and the rising cost of electricity and maintenance in one of the world's most expensive cities. While ride-hailing apps like Uber may offer lower base fares, the Black Cab remains the gold standard for reliability and "bus lane" access, allowing them to bypass the city's notorious traffic, which is a value-add reflected in the regulated meter fare.