Cygnus Cab Guide

Taxi or Private Hire? Telling Them Apart Before You Get In

Updated September 24, 2026 · Cygnus Cab Guide

A taxi, properly called a hackney carriage, can be hailed in the street or taken from a rank and charges what its meter shows. A private hire vehicle, the minicab, must be booked in advance through a licensed operator and may not pick up anyone who simply walks up to it. Outside London both are licensed by the local district council; in London the licensing body is Transport for London. Mixing the two up is how passengers end up uninsured, overcharged or in an unlicensed car.

The two kinds of vehicle side by side

The two systems come from different Acts of Parliament. Hackney carriages are licensed under the Town Police Clauses Act 1847, while private hire sits under the Local Government (Miscellaneous Provisions) Act 1976. As a passenger, the differences you notice come down to how you hire the car and how the price is set.

PointTaxi (hackney carriage)Private hire (minicab)
How you hire itRank, street hail or advance bookingAdvance booking through a licensed operator only
Can it be flagged down?Yes, within its own licensing districtNo
MeterRequired; shows the council's tariffNot required; if fitted it must be tested and approved
Who sets the priceThe council, through a table of faresThe operator, usually quoted when you book
Roof signIlluminated "TAXI" signNot in every district; Cannock Chase does not use one
Licences involvedDriver and vehicleDriver, vehicle and operator, all from the same council

How taxis work

A licensed taxi carries a roof sign that lights up when the cab is available, and the fare is whatever the taximeter shows for journeys that start and finish inside the district. The council's own passenger guidance says the meter is usually on the front dashboard and that you should not be charged more than it displays. A copy of the table of fares has to be displayed inside the vehicle where hirers can see it.

The right to be hailed has a geographic limit. A hackney carriage licensed by one council can wait on that council's ranks and be flagged down in that district. It does not gain the same right in the next district along. Pre-booked work is different, and a taxi can be booked for a journey almost anywhere. Journeys that cross a council boundary have their own fare rules, which are worth knowing before a long trip.

How private hire works

A private hire vehicle in a district such as Cannock Chase is licensed to carry no more than eight passengers and must be booked through a licensed operator, who records the booking. The council's licensing policy is blunt on the point: if there is no prior booking, there is no ride, and a driver cannot take a booking at the moment of hiring. The same document tells passengers that if they get into a private hire vehicle that has not been booked, neither they nor the driver are insured, and the driver is committing an offence.

The price is agreed between you and the operator. Many operators quote at the time of booking, and ride-hailing apps work on the same principle: the app is the operator, and the driver, car and operator must all hold licences. Because there is no council-set tariff, you compare quotes in the usual way, and you should confirm the amount before the car arrives.

The roof sign trap

Licensing authorities differ on whether a minicab shows a roof sign. Cannock Chase private hire cars do not, but some neighbouring authorities require one. The reliable rule from the council's guidance is simple: only approach an unbooked vehicle if the roof sign says "TAXI". If the sign carries other wording or a telephone number, you need a booking.

Which one suits which situation

  • A late finish with no booking: a taxi from a rank. The Cannock Chase guidance describes a rank as the safest place to pick up a cab, rather than hailing one from the kerb.
  • An early airport run: either type can be booked in advance. A quoted private hire price gives certainty; a taxi will charge by meter unless a fare is agreed for a journey leaving the district.
  • A regular school or hospital run: agree the arrangement with an operator and check the vehicle plate and driver badge each time.
  • Travelling with young children: tell the operator the children's ages when you book; the rules on child seats in taxis and minicabs are narrower than many people expect.
  • Wheelchair travel: ask for a designated wheelchair-accessible vehicle when booking. The rights around accessible taxis are set out in the Equality Act 2010.

Checking before you travel

Both types should show a licence plate on the rear of the vehicle and a smaller plate inside the windscreen, and the driver should wear a badge where it can be seen. Many large firms now text the make, colour and registration of your car before it arrives. Matching that text to the car at the kerb is the quickest safety check there is. The full routine is in our guide to checking that a taxi or minicab is properly licensed.

London is a separate system

In London, Transport for London licenses both black cabs and minicabs, and the rules described here for district councils do not apply there. This site concentrates on Staffordshire, where each district council runs its own licensing, and uses the Cannock Chase policy as a worked example. Details such as vehicle age limits and test frequency differ from one council to the next, so treat any local figure as a guide and confirm it with the licensing authority named on the vehicle's plate. For the national framework, see the Department for Transport's Statutory Taxi and Private Hire Vehicle Standards.

Frequently Asked Questions

Can I flag down a minicab if it looks free?

No. A private hire vehicle may only carry passengers who have booked through a licensed operator. Getting into one without a booking can leave you uninsured, and the driver commits an offence.

Do private hire cars have meters?

They are not required to. Where a private hire vehicle does carry a taximeter, the Local Government (Miscellaneous Provisions) Act 1976 says it must have been tested and approved by the licensing council before it is used for hire.

Can a taxi be pre-booked?

Yes. Hackney carriages can be booked in advance as well as used from a rank, and many companies text confirmation details before arrival.

What does the roof sign tell me?

An illuminated "TAXI" sign means a hackney carriage that you can approach without a booking. Any other wording, or a phone number, means a private hire car that needs a booking.

Are the rules the same everywhere in England?

The two-tier structure is national, but each licensing authority sets its own conditions, fares and vehicle standards. London is run separately by Transport for London.