UBER UPDATE
UBER ACCUSED OF UNDERMINING SUPREME COURT RULING ON WORKER RIGHTS
Nine months after the UK Supreme Court made a crucial decision that effectively forced Uber Technologies Inc. to provide worker rights for its drivers, the firm was back in court on Tuesday 23 November, accused by the ADCU of trying to undermine the judgment and avoid a £5 billion VAT bill. The union acted as a defendant against the app-based giant’s bid to overturn previous rulings by securing a “statement of declaratory relief” that its contract model is not in violation of TfL regulations. Uber launched its latest action after comments made by Lord Leggatt during the Supreme Court ruling in February that dealt a major blow to exploitative gig economy bosses when six justices found the firm’s drivers should be classed as workers with access to minimum wage and paid holidays. Uber, which purports to be a booking agent only, has challenged the Judge’s comments which suggest the tech firm should enter into a direct contract with passengers when providing car journeys. Uber is therefore seeking a ruling that, that isn’t the case, which it argues is in line with the London transport regulator’s guidance. ADCU states that this system was designed to help the firm avoid its employment and VAT obligations by misclassifying itself as a tech firm rather than a licensed TfL transport operator. During February’s ruling, Lord Leggatt questioned whether this could be against the law, so Uber is now seeking clarification that such an arrangement is legal. The ADCU is asking the court to make the opposite declaration so that passengers must contract directly with the company rather than drivers. Its president Yaseen Aslam said: “Uber told the world [in February] it had turned over a new leaf, but this case proves that, despite the PR hype, Uber is still unwilling and unable to change its ways.” In a statement, Uber claimed it was committed to the changes mandated by the Supreme Court and that its latest court action is merely “seeking to clarify a different and narrow point of law.” Uber’s lawyers said that if the court rules against the company, it would have to change its operating model as it currently is contracted as an agent for the driver. Its ultimate concern is to ensure its regulatory compliance. Transport for London said in a statement it was assisting the court on Uber’s request, for clarification “on a point of law relating to the private hire booking process following the Supreme Court’s comments on the contractual relationship between operators and drivers.” A ruling is expected at a later date.
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UBER BEGINS CRACKDOWN ON DRIVER CANCELLATIONS
Uber is gearing up to block drivers who repeatedly cancel on passengers amid growing frustration with the ride-hailing app.
City.am reports that the company recently changed its privacy policies to state that it may consider how frequently drivers have rejected journeys in the past when assigning them to new jobs. The move takes aim at the culture of ‘dynamic pricing’ that has emerged across the likes of Uber and Bolt, which means that drivers can cancel journeys during a surge and find new jobs at an enhanced fare. This comes as users are becoming increasingly agitated with driver cancellations and the notable shortage of available drivers during peak hours, where drivers can cherry pick the most expensive journeys. Uber is yet to update its algorithm, but the update means it reserves the right to do so in the coming weeks and months. The company recently raised its prices in London following ongoing shortages, and the move suggests an attempt to retain customers who are increasingly using its rivals, such as Bolt and Ola.
Earlier this month, Bolt said drivers would be able to set their own prices, which is likely to draw more drivers into the app, addressing shortages.
UBER ANNOUNCES UPDATE IN SCOTLAND AFTER TAXI SHORTAGE AND ‘HIGH’ DEMAND
Uber will let people in Scotland book taxis with local cab companies on the app in a huge new update. The ride-hailing app has partnered with a locally licensed operator to meet the ‘high’ level of demand for cabs in Edinburgh. According to the Daily Record, the launch of Local Cab is in response to increased demand for taxis in the city amid a nationwide shortage and the need for more travel options. Local residents in Edinburgh have complained about the lack of taxis in and around the city centre and how vulnerable this can leave them. Passengers in the city can now connect with Capital Cars on Uber - the only firm involved in the Edinburgh partnership. The Local Cab option will appear when booking a ride along- side other choices including UberX, Exec, Comfort and Lux. Uber users in Dumfries, Stranraer, East Kilbride and Hamilton can already use the feature which was rolled out in May.
DECEMBER 2021
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