The Gearstick Dilemma: Bridging the Atlantic Divide in Driving Preferences

Admin • March 4, 2024

Manual gear shifting in cars is becoming rare, following a trend seen in the US.

In the automotive world, the quintessential experience of shifting gears manually is rapidly becoming a relic of the past, mirroring a trend long observed across the Atlantic in the United States.

grey saloon car parked

Recent analysis reveals a remarkable shift in driving preferences among Britons, with the number of individuals opting for automatic cars during their driving tests more than tripling over the past decade. This transformation echoes the longstanding preference for automatic transmissions in the United States, where manual gearboxes have been dwindling in popularity for decades.


The rise of electric cars and manufacturers' decision to phase out conventional gearboxes have accelerated this transition in the UK. As a result, modern car models in both countries operate similarly to bumper cars or milk floats, boasting impressive acceleration from standstill and effortless cruising.


In the past year alone, nearly 1.7 million individuals took their driving tests in the UK, with a significant portion (19%) opting for cars equipped with automatic gearboxes. This marks a stark contrast from a decade ago when only 7% of driving tests were conducted in automatic cars.


Despite the growing popularity of automatic transmissions, data from What Car? suggests that the pass rate for automatic tests is lower than for manuals, a trend observed on both sides of the Atlantic. This discrepancy is often attributed to learners in automatic cars taking their tests with less on-road experience and road safety awareness.


Driving instructors on both continents are witnessing a surge in demand for cars equipped with automatic gearboxes. In the UK, data from the AA Driving School indicates that over a third of individuals training to become instructors with the AA opted for automatic vehicles over manuals in 2023.


Claire Evans, Consumer Editor at What Car?, acknowledges the enduring appeal of manual gearboxes for driving enthusiasts but notes that on many mainstream models, manual transmissions are becoming obsolete. Factors contributing to the popularity of automatic transmissions include manufacturing trends, the rise in demand for electric cars, and the perception among younger drivers that manual driving skills are less necessary due to the gradual phasing out of manual transmissions.


As the UK continues to align with the US in driving preferences, the decline of the gearstick symbolizes a significant shift in the automotive landscape on both sides of the Atlantic, impacting driving habits and industry norms alike.


Interestingly, the UK is now mirroring the trend seen in the USA, with a significant shift towards automatic gearboxes. This change is evident not only in private vehicles but also in the taxi industry, where automatic transmissions are becoming increasingly popular among drivers.


So, what's driving this shift towards automatic gearboxes, especially among taxi drivers? The benefits are manifold, particularly for those navigating the bustling streets of London:


  1. Ease of Operation: Automatic gearboxes eliminate the need for manual gear shifting, allowing drivers to focus more on the road and passenger safety. This ease of operation is especially valuable in stop-and-go traffic, common in urban environments.
  2. Reduced Fatigue: Taxi drivers spend long hours behind the wheel, and automatic transmissions help reduce driver fatigue by eliminating the constant clutching and shifting associated with manual gearboxes. This can lead to increased driver comfort and overall well-being.
  3. Enhanced Efficiency: Automatic transmissions can optimize gear shifts for maximum fuel efficiency, ensuring smooth acceleration and optimal engine performance. This not only benefits the driver in terms of fuel savings but also contributes to a greener, more sustainable transport system.
  4. Improved Accessibility: Automatic taxis are often preferred by passengers with mobility issues or disabilities, as they offer smoother rides and easier ingress and egress compared to manual vehicles. This accessibility feature can help taxi drivers cater to a wider range of passengers and enhance customer satisfaction.


As the UK's taxi fleet continues its transition towards zero emission vehicles, the adoption of automatic gearboxes represents a pivotal step towards creating a cleaner, more efficient transport network.


By embracing this trend, taxi drivers are not only contributing to the fight against air pollution but also reaping the benefits of modern automotive technology for a smoother, more comfortable driving experience.


The trend continues on its trajectory to full auto.

You might also like

By taxi direct finance team March 18, 2026
Tax policy rarely grabs headlines in the taxi sector, but recent changes to the way VAT is applied to ride‑hailing fares have created significant debate across the industry. The UK government introduced new rules designed to ensure the full value of minicab fares is subject to VAT when processed through platforms such as Uber. The measure was expected to raise hundreds of millions of pounds in tax revenue each year. However, the situation quickly became more complicated. Uber’s Contract Changes In response to the new tax rules, Uber revised its contracts with drivers across much of the UK. Under the revised structure, Uber positions itself as an agent connecting passengers with drivers rather than the supplier of the transport service itself. This change means drivers technically provide the service and are responsible for charging VAT if required. Why the Tax May Not Apply to Many Fares Most private‑hire drivers earn less than the UK VAT registration threshold, which currently sits at £90,000 in annual revenue. If a driver earns below that level, they do not have to register for VAT. That means the 20% tax will not be added to their fares. As a result, many rides booked through Uber outside London may continue to avoid the VAT increase that policymakers expected to see. Differences in London The situation is different in London. Transport for London requires ride‑hailing platforms to operate under a model where the platform is considered the transport provider. Because of that rule, VAT still applies to the full fare in the capital. This creates an unusual situation where the same ride‑hailing company operates under different tax structures depending on where the journey takes place. Impact on the Taxi Industry For traditional taxi and private‑hire operators, the issue is not just about tax. The way ride‑hailing companies structure their contracts affects pricing, competition and driver earnings. Changes to VAT rules can influence fare levels and therefore demand. Some industry figures argue that the rules should be clearer so that all operators compete under similar tax conditions. What Drivers Should Watch Drivers need to pay close attention to how their contracts are structured and how tax obligations apply to them. If earnings rise above the VAT threshold, drivers may be required to register for VAT and charge it on fares. That could affect both pricing and income. Understanding these rules is becoming an important part of running a private‑hire business. Looking Forward The taxi sector has always adapted to regulatory change. The current VAT debate is another example of how legal and tax frameworks can reshape the economics of ride‑hailing. For drivers, operators and platforms, staying informed about these changes will be essential as the industry continues to evolve.
By taxi finance direct team March 16, 2026
London is preparing for a major shift in urban transport as several companies plan to introduce driverless taxis in the city over the next year. Ride‑hailing platforms including Uber and Lyft are working with Chinese technology firm Baidu to launch autonomous taxi trials in 2026. The vehicles will use Baidu’s Apollo Go self‑driving system, which has already been deployed in cities across China. The trials are part of the UK government’s effort to accelerate autonomous vehicle development. Britain wants to position itself as a leading market for this technology, and London’s dense traffic environment makes it an ideal testing ground. Why London Matters London is one of the world’s most complex driving environments. Narrow roads, heavy pedestrian traffic, cyclists and buses all create challenges that autonomous systems must learn to handle. Because of this complexity, companies often train their systems in stages. Vehicles initially operate with safety drivers while they collect mapping data and learn how to respond to local road behaviour. Alphabet’s autonomous vehicle division Waymo is already carrying out this process. Its cars have been spotted driving around London with human operators behind the wheel while the technology is refined. How Robotaxi Fleets Work Autonomous taxis operate differently from traditional taxi services. Instead of individual drivers owning or leasing vehicles, robotaxis are typically run as large fleets managed by technology companies or mobility platforms. The vehicles are designed to operate for long hours with minimal downtime. This changes the business model. Revenue depends on vehicle utilisation rather than driver shifts. Fleet operators focus on charging infrastructure, maintenance schedules and software updates rather than driver recruitment. For the taxi and private‑hire sector, that means the industry may gradually move toward a mix of human‑driven and autonomous services. What It Means for Drivers Robotaxis are unlikely to replace human drivers in the short term. Early deployments will involve small fleets operating in limited areas while regulators monitor safety. Drivers still provide services that technology struggles to replicate, such as assisting passengers with accessibility needs, handling unusual journeys or navigating unpredictable traffic conditions. However, automation could change parts of the market. Short, routine journeys may eventually be served by autonomous vehicles while drivers focus on premium, specialist or high‑service trips. Regulation and Safety The legal framework for self‑driving vehicles is being established through the Automated Vehicles Act, which sets rules on liability and operational responsibility. Under the new system, the company operating the autonomous vehicle — not the passenger — will be responsible if something goes wrong. This approach is intended to provide clarity for insurers, regulators and the public. The Road Ahead Robotaxi trials in London represent the first real test of autonomous ride‑hailing in the UK. The technology has already logged millions of miles in the United States, but London presents a completely different challenge. If the trials succeed, they could mark the beginning of a gradual transformation in how taxi services operate across the country.
By taxi finance direct team March 6, 2026
The UK government is moving toward national minimum standards for taxi and private‑hire licensing, alongside the possibility of larger regional licensing areas. The aim is to reduce inconsistencies between councils and improve passenger safety across England. At present, licensing rules vary widely between local authorities. This affects driver vetting, vehicle requirements and enforcement capacity. It also allows drivers licensed in one area to work predominantly in another, which has long been a point of tension within the industry. National standards would introduce consistent background checks, safety requirements and accessibility rules. For passengers, that means greater confidence that any licensed vehicle meets the same baseline. For drivers, it could mean clearer expectations but also more rigorous compliance. Operators may face transitional costs as systems and documentation are aligned with new rules. However, greater consistency can reduce long‑term administrative complexity, particularly for businesses operating across multiple regions. Larger licensing areas are also being considered. This could improve enforcement by aligning licensing with wider transport authorities rather than individual councils. It may also make it easier to share data and carry out joint compliance operations. For fleet owners and finance providers, regulatory clarity is positive. Consistent standards reduce uncertainty when assessing risk across different regions. Vehicles operating under a uniform framework are easier to value and finance than those subject to highly localised rules. Drivers will need to monitor consultation outcomes closely. Changes to medical checks, training requirements or safeguarding standards could affect licence renewals. Planning ahead and keeping documentation current will be essential to avoid interruptions to work. The reforms are still in development, and industry input will shape the final framework. However, the direction is clear: stronger safety oversight and more consistent licensing across the country.  For the UK taxi and private‑hire sector, this is a structural change rather than a short‑term adjustment. Businesses that invest early in compliance systems, driver training and clear governance will find the transition smoother and be better positioned for future regulatory developments, including the integration of autonomous vehicles.