Freenow raises London black cab commission to 20% from 14 September

Freenow by Lyft now charges London black cab drivers 20% commission including VAT, except drivers carrying its on-cab advertising or signing up for it before the end of 2026.

By JoltMilePublished 29/09/2026

Last checked 29/09/2026.

Source: TaxiPoint

From 14 September 2026 Freenow by Lyft charges London black cab drivers 20% commission, including VAT, on completed jobs. Drivers who take part in its on-cab advertising programme, or who sign up to it before the end of 2026, keep their existing rate. Freenow said the extra revenue would fund product work, driver benefits and marketing, alongside 24-hour support and instant cash out for drivers in higher tiers.

It is the first visible change for drivers since Lyft bought Freenow, and Lyft has since agreed to buy Gett UK.

What it means for your tax

Commission is a business expense. Most cab drivers are not VAT registered and cannot reclaim the VAT inside the 20%, so the whole amount is the cost. Fares stay your turnover before commission. If you take on advertising to keep the lower rate, any payments for carrying it are income too. Driving with Freenow has more.

Sources

Was this useful?Sign in to say so

Related

GuideFreenow

Driving with Freenow: black cab and private hire

Freenow, now owned by Lyft, sends jobs to London black cabs and to private hire drivers. It charges commission only on completed jobs, rewards drivers who carry its advertising, and will pay for private hire drivers to do the Knowledge. Here is how each of those lands on your tax return.

Getting startedUpdated 29/09/2026

FAQFreenow

What commission does Freenow charge black cab drivers?

From 14 September 2026, 20% including VAT for London black cabs on completed jobs, unless you carry Freenow's on-cab advertising or sign up for it before the end of 2026.

Earnings & profitabilityUpdated 29/09/2026

ArticleDeliveroo

Who owns the delivery apps now, and what changed for drivers

In 2025 most of the big names changed hands: DoorDash bought Deliveroo, Prosus bought Just Eat, Lyft bought Freenow, InPost bought Yodel and Evri merged with DHL eCommerce UK. For drivers and riders, very little changed on day one. Here is what to watch.

Earnings & profitabilityUpdated 29/09/2026

GuideFreenow

Handling Freenow passenger no-shows and cancellation fees

Learn how waiting times, cancellation windows, and fee claims work when a passenger fails to show up for your Freenow trip.

Practical problemsUpdated 25/10/2026

ArticleFreenow

Freenow vs Uber: Which pays better for London private hire drivers?

Compare take-home pay, commission rates, and job volumes between Freenow and Uber for London private hire drivers.

Earnings & profitabilityUpdated 25/10/2026

ArticleUber

Uber Green: Is it worth buying an EV for private hire?

A realistic financial look at whether buying an electric vehicle for Uber pays off once you factor in purchase costs, charging, and fuel savings.

Vehicles & equipmentUpdated 25/10/2026