The FREENOW UK operating model

In December 2021, the High Court ruled that all licensed PHV operators in London, including FREENOW, need to change the way they operate. In response to this ruling, from 13th June 2022, FREENOW will contract directly with all passengers taking a private hire ride, while our taxi operating model remains the same.

These are the key changes for a PHV driver:

You will contract with FREE NOW, and no longer directly with the passengers
This means there will no longer be a commission
You will see actual earnings on your offer screen

To help explain all changes, please read the FAQs below.

Frequently asked questions

Don't see your question? Check out our Help Center or get in touch with our Driver Care Team here.

Why is this change happening?

In December 2021, the UK High Court handed down a judgement in which it ruled that all PHV London operators must contract directly with the passenger for the transportation services, instead of acting as an agent or intermediary. For this reason, FREE NOW will contract directly with the passenger for the transportation services instead of the contract being between the passenger and the driver. These changes will be implemented from 13th June 2022.

What do these changes mean for Black Cab drivers?

Nothing will change for taxi drivers as a result of the judgment. The High Court’s judgment does not apply to London taxi services. Therefore, FREE NOW can retain its role as intermediary for London taxi drivers when making them available via the FREE NOW app.

What do these changes mean for PHV drivers?

From 13th June FREE NOW won’t charge commission to PHV drivers anymore and instead will buy transportation services from them. PHV drivers will no longer see a full fare paid by the passenger when they receive a trip offer but instead the amount that they are going to receive from FREE NOW for completing the trip. Therefore the values PHV drivers see on offer screens will appear 15% lower than today, which is the value of the current commission + VAT. PHV drivers' earnings won’t be affected by this change.

Will the same terms and conditions apply for black cab drivers and PHV drivers?

No. Our PHV and taxi business models will be much more different than before and therefore, we need to split the terms and conditions for drivers into two sets, one applicable for PHV drivers and one applicable to black cab drivers. Therefore, when registering with Free Now, you will have to review and agree to the terms and conditions applicable to you.

What will happen to the commission paid by PHV drivers?

As a consequence of the High Court judgment, FREE NOW will contract directly with passengers for the transportation services and therefore, we had to make changes to our business model and the way Free Now handles payment.

From now on, FREE NOW will purchase the transportation services directly from PHV drivers and sell them to passengers. Therefore, there will no longer be a commission as FREE NOW will charge the passenger directly.

You will no longer see a commission in the offer screens, listed on the individual trip earnings or in your weekly statements

What will happen to PHV driver earnings at FREE NOW?

Driver earnings will not be affected by these changes. From the 13th of June, PHV drivers will only see the amount of money that they will get paid for that ride. Therefore, the values PHV drivers see on offer screens will appear 15% lower than before, which is the value of the current commission + VAT. Base price, price per mile and price per minute from the PHV driver earnings perspective will remain the same. Surge will be applied to trips as it is today.

Independently from the High Court judgment,based on your feedback, we decided to introduce automatic adjustments of the Ride Payment if the duration or distance of the PHV trip is significantly longer than initially estimated.

What will change in the driver app?

PHV drivers will interact with the app the same way as before. They will still have freedom to decide where, when and how you work. PHV drivers will still be able to use the app to accept rides as you have to date. They will now see the full payment you will take home for a PHV ride. PHV drivers will no longer see a commission or have to calculate the percentage of the trip that you will take with you.

What are the changes to PHV pricing?

There are no changes to the way we calculate drivers’ earnings (base rate, price per mile, and per minute or surge). PHV drivers will see a different price on the app from now on because they will only see their take home earnings without VAT or commission. This will be shown to you in the app as ‘Ride payment’.

The only major change is automatic ride payment adjustment described below.

How does Ride Payments Adjustment work?

In the case of a PHV Journey, FREE NOW will adjust the Ride Payment where the actual distance for the PHV Journey exceeds the estimated distance by +30% or the duration of the PHV Journey exceeds the initial estimate by more than 10 minutes. When a Ride Payment Adjustment is due, FREE NOW will notify you via an in-app message of the new Ride Payment at the time of recalculation.

When will these changes happen?

These changes will become effective from 00:00 on 13th June 2022. FREE NOW will ask you to review and accept the new terms and conditions when you next use the FREE NOW app.

From 13th June 2022 at 00:00 in order to continue to use the FREE NOW app as a driver, you will need to review and agree to your new Terms.

How will my relationship with FREE NOW change after 13th June 2022?

From 13th June 2022, you will no longer contract with the passenger directly, instead FREE NOW will contract with passengers for Transportation Services. Drivers will remain self-employed and therefore, they will maintain the flexibility to work when, where and how you want.

Will this affect PHV drivers’ employment status?

Drivers will remain self-employed for all purposes, including for employment, income tax and National Insurance purposes.

Will this affect PHV drivers’ tax status?

Drivers will remain self-employed for tax purposes and you should continue to complete an annual tax return. As a driver you are required to pay VAT if your annual turnover exceeds £85,000. We encourage drivers to get independent advice based on their personal circumstances.

Do these changes affect payment of Tips to the driver?

No, 100% of tips will still be passed on to drivers directly and FREE NOW will not charge any commission on them.

Will PHV cancellation fees change?

The cancellation fee value will remain the same, but it will be paid from FREE NOW to drivers instead of from passengers to drivers.

As a result of PHV driver feedback, you will also be able to cancel the PHV trip and receive a fee after 5 minutes of waiting at the pickup point instead of 8 minutes.

Will PHV waiting time fees change?

The waiting time fee value will remain the same, but it will be paid from FREE NOW to the PHV drivers instead of from passengers to drivers.

Will these changes affect how road tolls, tunnel tolls, airport fees, congestion charges or ULEZ fees are processed?

No, the way these are charged and treated on the driver app will remain the same.

What happens to trips pre-booked before Monday 13th, 00:00 but happening after? Will there be any issues with them?

Due to the change in the FREE NOW PHV business model, values of PHV pre-books in the offer screen booked before Sunday, 12th June, 23:59 for a ride happening from Monday, 13th June, 00:00 will be equal to what passengers are paying, not what drivers are earning. It will be a very small share of rides, but we’re flagging it in case you see some discrepancies. Values of all pre-books made from Monday, 13th June will be always what you earn.