UBER UPDATE UK
“USE TERRORISM LAW TO STOP UBER TRAFFIC”
A Camden councillor has called on the council to use terrorism legisla- tion to help tackle huge traffic problems caused by Uber taxi drivers parking outside St Pancras International station.
Black cab drivers have complained of having to double park in Pancras Road due to minicabs, waiting for “e-hails” from apps such as Uber, sit- ting in restricted bays for up to 12 minutes. This is leading to traffic tailbacks along Euston Road in both directions and security risks at Camden’s major transport hub. The problem is being attributed to former local government secretary Eric Pickles, who earlier this year introduced a ten-minute grace period for motorists when parking tickets run out. The rules also apply to the bays in Pancras Road, which previously allowed motorists to stop for two minutes but now allow cab drivers to sit for up to 12 minutes. According to the Wood and Vale, Green Party councillor Sian Berry is calling on the council to use a Traffic Regulation Order restrict- ing waiting to two minutes based on a separate clause in the law cov- ering the risk of terrorism. Environment chief Cllr Meric Apak said he does not want to use “anti-terrorism traffic orders” and is relying on parking wardens to address the problem.
BLACK CAB DRIVERS FIGHT BACK BY SLASHING OFF-PEAK PRICES
Black cab drivers are slashing off-peak prices for longer journeys across London by 30 per cent in a bid to fight back against Uber. Journeys must be six miles or more and ordered at certain times through black cab booking app Gett to qualify for the discount on a metered fare, which became effective from the beginning of September. The reduced rate applies on weekdays between 10am-4pm, 8pm- 11pm and 2am-6am when demand from passengers is lower. According to the Daily Mail, Remo Gerber, CEO of Gett in the UK said: “Our passengers have the best of all worlds - a highly trained black cab driver, getting you home quickly and safely, using bus lanes to avoid the traffic, and a fare confirmed before the cab even turns up. No other taxi app offers all this in London.”
He added: “Just nine per cent of black cab journeys are currently over six miles so, by offering discounts at peak times, we’re also getting more of the long distance work for drivers and helping them earn more overall, even as some journeys are getting cheaper.” Almost all longer journeys in London are taken by minicabs, which can heavily undercut the black cab fare, so drivers hope the discount will encourage people to use the iconic hackney carriages. Steven McNamara, the general secretary of the Licensed Taxi Drivers’ Association (LTDA), said: “A discount scheme for off-peak times makes perfect sense. If this scheme gets more people to choose the profes- sional service offered by our members it’s a win-win situation. “More Londoners take advantage of the best taxi service in the world, and cabbies take home more money overall at the end of the day. “We also know that some Londoners want the price of their black cab ride fixed in advance and we’re very happy to bring that feature to more people. Riders can now know in advance exactly how much their journey will cost.”
OCTOBER 2015
GMB TAKES UBER TO TASK OVER MINIMUM WAGE PAY
A GMB London Uber driver has been paid below the minimum wage and the Union is therefore seeking a tribunal ruling on the underpay- ment. The basis of the claim made by GMB Professional Drivers is that Uber drivers are directed workers. The GMB member, who works exclusively for Uber as a cab driver in London, was paid £5.03 net per hour for 234 hours driving during Au- gust. This is £1.47 per hour below the national minimum wage of £6.50 per hour. For each hour he worked, the fees he paid to Uber were £2.65 per hour which equated to 53 per cent of his net pay per hour. In July, the GMB announced that it had instructed Leigh Day to take legal action in the UK on behalf of members driving for Uber on the grounds that Uber is in breach of a legal duty to provide them with basic rights on pay, holidays, health and safety and on raising complaints. GMB is asking Uber drivers to keep detailed records of income and expenditure so that any underpayment of the national minimum wage can be recovered as part of the Tribunal claim that Uber drivers are directed workers and thereby covered by legislation on pay, holidays, health and safety and on raising complaints.
HILTON HOTEL CHAIN IS PARTNERING WITH UBER
Hilton is hailing the ride sharing service Uber to help guests reach its hotels and then explore the city where they are staying. Business Insider reports that the companies said last month that Hilton guests will be able to set up automatic notifications to request Uber rides to and from the chain’s hotels worldwide. Members of the com- pany’s HHonors programme will also be to use a digital guide of restaurants and nightlife spots most frequented by Uber riders. The companies planned to launch this option in September in 20 U.S. cities as a feature within the Hilton HHonors mobile app. Terms of the deal between Hilton and Uber were not disclosed.
UBER’S TAXI BOOKINGS SET TO BE WORTH £7BN THIS YEAR
Uber’s global bookings are projected to more than treble to $10.8bn (£6.9bn) this year and reach $26.1bn the next, according to an investors’ presentation that indicates a stock market flotation for the ride-hailing business by 2017. The undated presentation offers a glimpse of the explosive growth of the six-year-old firm, last valued by investors at $50bn - the most for a privately held technology firm worldwide. Bookings reached $2.9bn last year and $688m in 2013, according to the presentation, which does not feature expenses or say whether Uber is profitable. A spokeswoman at Uber’s San Francisco headquarters, when asked about the presentation, said the company does not com- ment on “rumour and speculation”. Kalanick and people close to the firm have declined to discuss any timetable for an initial public offering in Uber.
Uber is widely believed to be losing money as it offers financial incen- tives to drivers to gobble up market share. It is also dealing with numerous legal and regulatory issues and bans in countries. Uber’s troubles signal a troubled birth for a 21st-century concept: the sharing economy. Under the sharing model, untapped capacity - such as idle cars and rooms - is made available for hire, increases efficiency and low- ers the price of those goods and services.
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