The cost of running a business has risen significantly in the past decade, reshaping the business landscape across the UK.

However, new research suggests that not all industries have been impacted on the same scale, and the taxi and private hire sector has been revealed among the UK sectors most affected, with operating costs having increased by 54% in the last ten years.

To understand which industries have faced the greatest pressure, Dojo have analysed ten core cost categories, including business rates, energy, and industry-relevant supplies, between 2015 and 2025, to create the UK Inflation Index, a sector-by-sector breakdown revealing where operating costs have risen fastest, and how business inflation now compares to consumer inflation.

New data breaks down how Taxi and Private Hire costs have increased over the last 10 years

In addition to highlighting taxi and private hire among the UK sectors most impacted by inflation in the last decade, Dojo’s inflation index has also revealed which types of costs have contributed most to this increase:

• Rent & Business Rates: 67%

• Energy 80%

• Labour 40%

• Insurance 60%

• Materials & Supplies 88%

• Technology & Software 100%

• Licencing & Mandatory Fees 50%

• Banking & Payment Processing 71%

• Transport & Vehicle 63%

• Training Costs 100%

TOTAL AVERAGE : 54%

Dojo’s research found taxi and private hire firms have faced sharper cost increases than the UK business average over the past decade.

Technology and training costs have seen the sharpest increases, both doubling over the past decade.

WHAT CAN TAXI AND PRIVATE HIRE BUSINESSES DO TO COMBAT INFLATION

Charlie Ashworth, Head of Research & Insights at Dojo, says: “While operating costs have risen significantly over the past decade, with the right insight into their cost structure, businesses can be better equipped to respond to these pressures.

“For business owners, the opportunity lies in control and efficiency. With labour, energy, insurance and technology costs all contributing to long-term structural change, understanding where your exposure sits is now a strategic advantage. Reviewing supplier contracts, improving operational efficiency, reducing unnecessary overheads, and optimising payment systems can all help protect margins in a higher-cost environment.

“With increases of this scale, businesses must take a more strategic approach to operations and managing their supplies. Understanding the supply chain is critical, and business owners should really look into how much they pay per item and whether there are more competitive suppliers available without compromising quality. Another option is to investigate how usage can be reduced, or processes improved to minimise waste. In times of sustained inflation, careful supply management can make a meaningful difference to overall profitability.

“Businesses that regularly assess their operating model, adapt pricing strategies where possible, and invest in tools that streamline transactions and reduce friction are often better positioned to absorb cost pressures without compromising service or growth.

“The past decade shows that the cost of running a business has evolved. The next decade will reward those who evolve with it.”

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