UBER UPDATE
UBER FACING UP TO LOOMING LEGAL ACTION FROM LONDON’S BLACK CABBIES
More than 10,000 black cab drivers in London have signed up to a group legal action against Uber that could be worth in excess of £200 million. According to Times News Express, the action centres on a claim that Uber broke the law in the UK capital between June 2012 and March 2018, when it allowed its drivers to accept bookings directly when they were not licensed to do so. London’s black cabs drivers allege that Uber breached the Private Hire Vehicles (London) Act 1998, which stipulates that PHVs, including ride-hailing cabs, in the city must be organised through a centralised office. Uber has denied the allegation. No claim has been issued as yet against Uber. Should the claim reach the courts, it would mark the latest regulatory headache for the ride- hailing giant in one of its most important markets. The company was dealt a blow by the UK Supreme Court in March, which ruled that it must classify its some 70,000 drivers in the country as workers.
ment to the number of cabbies who suffered at the hands of Uber’s failure to adhere to the relevant legislation,” he said. “We are extremely confident in the merits of the claim and are lending the BULit21 group our full support and deep expertise in bringing large and complex legal actions to court.” The campaign comes after Uber agreed to recognise the GMB trade union in the UK for its drivers.
UBER’S OFFICIAL RESPONSE TO DECISION BY COMPETITION & MARKETS AUTHORITY
Uber has responded to the Competitions and Markets Authority’s (CMA) decision which approved its acquisition of Autocab. The ridesharing company stated:
The latest action, known as the BULit21 campaign, is being headed up by litigation firm RGL Management and law firm Mishcon de Reya. The companies believe PHV drivers operating in the city between June 2012 and March 2018 can sue Uber for a loss of earnings and that as many as 30,000 drivers could be eligible to join the campaign.
RGL and Mishcon said the claim could be worth in the region of £25,000 per driver in lost earnings, giving it an overall value of more than £200 million ($283 million). Uber said the allegations were “completely unfounded.” “We are proud to serve this great global city and the 45,000 drivers in London who rely on the app for earnings opportunities, and are committed to helping people move safely,” a representative said in a statement. James Hayward, the chief executive of RGL, said reaching 10,000 drivers was a “landmark moment”. “The rapid growth of this claimant group really is testa-
JULY 2021
“Earlier this year Autocab was acquired by Uber, which has led to some questions from within the industry. We want to answer these questions and give Autocab customers the reassurances they deserve. “When the CMA cleared the acquisition, they concluded that the deal did not give rise to competition law concerns. We agree, and believe it is positive for competition. “The deal will help cement the place of local operators in their community. Consumers will easily be able to access a local cab, and operators and drivers will have greater earnings opportunities. “We understand the importance of protecting Autocab’s customers’ commercially sensitive data, not only because it is imperative that we are always fully compliant with the UK’s data protection laws, but also because we know that protecting this data is key to our, Autocab and their customers’ success. “Since launching Local Cab, our new product that allows riders to connect with local operators through the Uber app with Need-A-Cab in Plymouth, they have seen demand for trips increase exponentially. As a result, they are now recruiting drivers. Need-A-Cab is the first of many opera- tors we hope will partner with us over the coming years.” “Hundreds of thousands of people open the Uber app in towns and cities where Uber doesn’t operate and which have great local operators willing and able to serve them. We want to help connect these passengers directly with operators. “If you’re an operator looking to expand, get in touch with the Autocab team so you can understand exactly how they can help your business.”
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