The iconic black cabs of London might be feeling the heat from ride-hailing app services like Uber, but things might be about to get a lot better as they are set to undergo a wide upgrade that will keep their market position relevant.
In an effort towards a massive overhaul, Transport for London (TfL) has mandated installation of card readers in over 22,500 black cabs by October this year. The announcement comes after the TfL board backed the move following a consultation that showed 86 percent of respondents supported the initiative.
“We believe the acceptance of card and contactless payments will be a huge plus for both taxi drivers and their passengers. Card payments are part of everyday life in London, and people use them in every aspect of their lives,” said TfL COO for Surface Transport Garrett Emmerson.
While almost half of the existing black cabs already accept card-based payments, cash has continued to remain the more popular way of money exchange. However, the usage of cash to pay for cabs sharply deviates from the fast-growing popularity of contactless payments among users paying for the Tube.
According to a TfL report released earlier this week, a record 300 million rides have been paid for by contactless payment methods since the launch of the service in 2012. Now, TfL is moving ahead to see a similar change in black cabs by disrupting their payments acceptance model for good.
“The TfL network is seeing more and more contactless payments, so this would bring the taxi trade into line with other transport services in the Capital. It means that customers no longer have to check whether they have cash for a journey beforehand and will open up taxis to potential new customers,” Emmerson added.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More