Abdul Wadud, 46, of Millstream Way, Leegomery, pleaded guilty to two charges at Telford Magistrates Court on Monday.
Wadud admitted plying for hire, and driving without insurance.
The charges related to an incident at High Street, in Newport, on November 9, 2019.
Wadud had been stopped in a joint operation involving Telford & Wrekin Council and West Mercia Police.
They were targeting private hire drivers who 'ply for hire' by illegally accepting a passenger who has not booked in advance.
Wadud, who is licensed by Shropshire Council, was fined £200 and ordered to pay £350 costs, along with a £32 victim surcharge.
He was also given six penalty points.
The court reduced the amount of costs after hearing Wadud had significant debts following the earlier failure of a takeaway business, and has a reduced income because of the pandemic.
Councillor Richard Overton, Telford & Wrekin Council’s cabinet member for enforcement, said: “We understand the pressures drivers can be under, especially during the pandemic but we need to balance that by making sure passengers are safe.
"It is illegal for a private hire driver to take a fare that hasn’t booked in advance and it means the journey isn’t insured. Our licensing team is always available to offer help and support.”