When you need your car to earn your living, deciding which make and model to pick is critical, unreliability and poor fuel economy will decimate your profits. Further to this, poor space in the rear or boot can make your passengers’ experience worse, leading to poor ratings. 

In this blog, we take a look at the 9 best cars for use as a Taxi or Uber, including some specialised ones for differing needs, such as 7-seaters and luxury vehicles.

Best Car to Use as a Taxi - Our Pick

Toyota Prius 2.0 Petrol Hybrid - £37,315

Favoured by Uber and Lyft drivers, the Prius offers great economy, space and reliability, all vital to a successful taxi business. Toyota’s Synergy Drive system is one of the simplest and most ingenious drivetrains ever used in a car. It is responsible for much of the Prius’ economy and reliability.

Alongside its great drivetrain, the Prius has some other useful features, such as a large boot for passenger’s luggage plus a comfy and spacious interior. 

In 2024, the new Prius is available from £37,315 with its 2.0 petrol and plug-in hybrid battery system offering 223 horsepower and over 50 miles of electric-only range.

With its dependable drivetrain, great economy and ample passenger space, a new or second-hand Prius would be our pick for a taxi.

Best Estate and Saloon Cars to use as a Taxi

Skoda Octavia - 2.0 TDI - £26,775

For longer journeys, such as airport runs, a diesel may be the best option for any aspiring rideshare entrepreneurs. The Skoda Octavia has always been a favourite of taxi drivers due to its great reliability and spacious interior.

The hatch-saloon offers great accessibility to the load area, but we’d generally recommend the estate for that bit more luggage space. The efficient diesel engine can achieve up to 65 MPG, great for keeping fuel costs low.

Volkswagen Passat - £38,505

The Passat is a similar package to the Octavia, even sharing the same platform, the VW comes available with more kit and luxury, ideal if you're aiming for the Lux market, the new Passat would be perfect.

The Passat is only available with the VAG group’s 1.5 TSI Petrol engine, although this still achieves a great MPG of 52. The DSG gearbox offers a smooth and ultra-efficient gear change.

Best 7-Seater Cars to use as a Taxi

7-seater taxis are very common in the UK, they can carry 6 passengers, or 4 with loads of luggage space, and they don’t usually take up much more room than an estate Here are 3 of the best 7-seater cars on the market.

Volkswagen Touran - £37,420

First appearing on the market in 2003, the Touran has been a mainstay in the 7-seater market, offering dependable, practical people-carrying ability. 

The new Touran, being a Volkswagen, comes available with all manner of tech, including adaptive cruise control and Apple car play. 

One of the standout features is the folding seats, which allows all 5 seats rear of the driver to fold perfectly flat. This means you can carry larger items such as passengers' wheelchairs or bikes without issue.

Transit Grand Tourneo Connect - £33,820

As a good compromise between a commercial vehicle and an MPV, the Tourneo Connect offers great people-carrying capacity with its van-derived flat floor, allowing all the rear seats to be completely removed if needed.

If fuel economy or Company Car Tax is a concern, the Tourneo Connect is available as a PHEV with up to 68 miles of range on electric power alone. A benefit of the Tourneo being a blend of car and van, is that the driving position and infotainment system is modern and refined.

Citroen Berlingo 7 Seater - £22,250

In a similar fashion to the Tourneo, the Berlingo is based on a Citroen Van platform. Again, we see that as a plus though, it has a flat load bay when the seats are removed, and can carry 7 people (including the driver) in comfort. 

At a starting price of £22,250, the Berlingo is a much more cost-effective solution than the Ford, too. The base trim comes with active lane-keeping assist, safety braking and cruise control, a great selection of features for the price.  

Best Luxury Cars to use as a Taxi

If your main market is the high-end clientele, looking to make an impression with their arrival, you’ll need a high-end vehicle. These are some of the most popular luxury-segment vehicles to use as a taxi.

Mercedes E-Class - £64,610 

Mercedes is synonymous with both luxury and private hire taxi companies across the world, whether that's a dependable 90’s 190e in Spain or a stylish C-Class in Mayfair. The latter can be bought today in 2024 for around £64,500, which is unsurprisingly the most expensive car on our list so far. 

That cost is understandable though, with great infotainment, safety and passenger comfort features. Heated seats and LED headlights are standard, as is the impressive level of build quality. Many engine options are available including a plug-in hybrid.

BMW 5 Series - £51,015

Another giant in the luxury saloon segment, the 5 Series has been on the scene for years, since 1972 in fact. The recipe has stayed roughly the same but with more luxury and features. The M-Sport base model comes with a 2.0-litre petrol engine and an automatic gearbox.

Equipped with LED headlights, BMW’s unique curved infotainment screen and driving assist, you do get a lot for your money. If more power or more economy is needed, there are a range of engine options including a 3.0-litre turbo petrol or a plug-in hybrid.

Lexus ES - £43,595

Ever since their first car in the late 90s, Lexus has cemented themselves as one of the luxury brands. The Lexus ES is their mid-size saloon, offering ample passenger space but most of all excellent build quality and style.

Being a sister company to Toyota, you can be sure of the longevity and reliability, plus the hybrid system, like the Prius’, is super economical and very robust. Prices start at £43,595 which we think is great value when you consider the two German saloons above. 

Can you use any car as a Taxi?

Yes, so long as it’s licensed with your local council, this needs to be the same council that issued the taxi or PHV driver's licence, and meets the government requirements.

What does my car need to be used as a Taxi?

There are a few conditions that your car needs to comply with in order to be issued a private hire vehicle licence by your council. These checks will include:

• its roadworthiness
• it’s comfortable and clean
• the taximeter (if it has one) works properly
• the doors are safe and secure

Source: gov.uk

Many councils also require the car to be Euro 6 compliant, and under 10 years old. 

Does my car need a taximeter to be used as a taxi?

Not always, alongside roof signs, colour schemes and a taximeter are determined by your licensing authority, aka the council area you wish to operate from. 

Check your local council website for more information.

What is the most common car for a taxi?

Outside of the traditional black cabs now made by London EV Company Limited, the Toyota Prus is the most commonly used taxi vehicle.

The reasons for this are the same as ours for making it our top pick; it delivers great economy and has a very reliable drivetrain. 

Do you pay company car tax on a taxi?

If you’re expensing the cost of a car through a business, either as a limited company or self-employed, and you also use it for personal usage, you are technically in receipt of a Benefit in Kind, and as such will owe tax on that amount. 

If you only drive your taxi for work purposes, there is no company car tax due. 

We recently talked about company car tax in-depth and what cars to choose to avoid it.

Split the Cost of Repairing Your Taxi With Bumper 

If you have a big bill on the horizon, say a new clutch or cambelt is needed, being able to spread the cost of this over a few months can really help your cash flow. This is possible with Bumper, and at zero-percent interest.