Addison Lee Boss Warns of ‘Predatory Pricing’ Threat from Robotaxi Firms

London’s taxi and private hire sector could face significant disruption from autonomous vehicle operators unless regulators intervene to prevent “predatory pricing”, the chief executive of Addison Lee has warned.

Liam Griffin said technology giants such as Waymo, Wayve and Tesla could use their financial strength to subsidise fares and undercut traditional operators, raising concerns about long-term market competition.

“We do feel that there is a danger that the big players can come in and ride roughshod over the existing industry,” Griffin said.

He called on regulators, including Transport for London (TfL), to consider introducing measures such as minimum fares for robotaxi services and limits on operating licences to ensure a level playing field.

The warning comes as London prepares to become a key testing ground for autonomous vehicle deployment, with companies including Waymo, China’s Baidu and Uber-backed partners planning UK launches once regulatory approval is granted. Commercial deployment is expected to begin as early as this year.

Griffin pointed to existing protections for black cabs, which operate with a minimum fare of £4.20, and argued similar safeguards may be necessary for the emerging autonomous sector.

“There are livelihoods on the line here,” he said, warning that without intervention “a handful of players” could make it “unachievable” for existing operators to compete.

Growing competitive pressure

Industry analysts expect autonomous ride-hailing services to become significantly cheaper over time, particularly as companies scale operations and eliminate driver costs.

In markets such as China, early robotaxi services are already being heavily discounted to attract users. Forecasts suggest fares could fall by up to 20% compared with traditional, human-driven services.

This approach mirrors the early expansion of ride-hailing platforms, where subsidised pricing was used to rapidly build market share before consolidation.

However, the scale of investment backing autonomous vehicle firms is considerably larger, with companies like Waymo and Tesla able to sustain losses for longer periods than conventional operators.

Balancing innovation and impact

The UK government has been actively promoting the development of autonomous vehicles, estimating the sector could contribute £42 billion to the economy and create up to 40,000 jobs by 2035.

Pilot programmes are already under way, with vehicles mapping London streets in preparation for future services.

While autonomous technology has the potential to improve safety and efficiency by reducing human error and optimising routes, concerns remain over its wider impact.

There are fears that lower-cost robotaxi services could draw passengers away from public transport, walking and cycling, potentially increasing congestion and undermining environmental targets.

Industry adapting to change

The arrival of driverless fleets is expected to accelerate transformation across London’s transport ecosystem, which has already been reshaped by the rise of app-based ride-hailing services.

Uber, for example, has partnered with multiple autonomous vehicle developers, positioning itself as a platform rather than a direct operator.

Griffin indicated Addison Lee could take a similar approach in the future:

“In the same way that we currently have Volkswagens, Mercedes and Audis in our fleet, I see the future being that we will have Pony.ai, Waymo and Wayve.”

As the regulatory framework for autonomous vehicles develops, the challenge for policymakers will be balancing innovation with fair competition and protecting existing livelihoods within the transport sector.