Addison Lee has pledged it will operate only electric vehicles from 2023.
The London taxi firm said it is investing £160 million to shift its 4,000-strong fleet to electric.
An impressive 200 Volkswagen ID.4 vehicles will be put on the capital’s roads every month from November.
The commitment is the largest single order of electric vehicles made by the UK’s private hire industry, according to Addison Lee.
And it puts the firm ahead of Uber which aims for all its cars in London to be fully electric by 2025.
Transport Secretary Grant Shapps said he is “thrilled” by the plans which compliment the government’s promise to reach net zero by 2050.
“With more than 500,000 electric vehicles now on our roads and nearly 25,000 public charge points, we’re at the beginning of an electric vehicle revolution,” he said.
It will also help to create pollution-free communities and support thousands of jobs in the supply chain over the coming decades, he added.
Addison Lee hopes to help businesses to reduce their carbon footprint with its electric-only fleet and give passengers more access to green, safe and premium transport options.
Chief executive Liam Griffin said: “As the transport provider of choice for many businesses and passengers, we know that we play a critical role in London’s transport network.
“Over the years, we have invested in our vehicles and technology to ensure we do all we can to make London a greener place.
“We are now going even further, by partnering with Volkswagen to invest in a rapid transition to electric.”
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