In what marks a significant escalation in the protracted conflict between Uber and London’s traditional black cab industry, a high-value lawsuit has been initiated against the prominent ride-hailing service.
Set to be brought before the High Court on Thursday, the legal action accuses Uber of acquiring its operating license from Transport for London (TfL) via improper methods back in 2012, a move that the cabbies allege led to illegal diversion of fares.
Documented to be worth in excess of £250 million, the lawsuit sees approximately 10,500 licensed black cab drivers as potential claimants, with RGL Management— the company managing the litigation—estimating potential individual payouts to reach up to £25,000.
To be a part of this legal action, all full-time and part-time London black cab operators from the period spanning June 2012 to mid-March 2018—including those who have retired—are invited to join the claim, as per RGL’s official announcement.
Garry White, a black cab veteran with over three decades of experience, expressed in a statement, “Uber operates with seeming disregard for regulation, to the detriment of London cabbies’ livelihoods. It’s high time they answer for their actions.”
The lawsuit is a resurfacing of a 2018 attempt by the drivers to hold Uber accountable, alleging deceptive communication to TfL about its business operations, which was set aside temporarily due to the COVID-19 crisis.
While the deadline for cabbies to join the lawsuit is looming, according to Michael Green of RGL Management, Uber firmly rejects the accusations. A spokesperson from Uber insisted, “These historical allegations are groundless. Uber is a fully compliant entity in London, backed by TfL’s licensing and is a trusted service to millions within the city.”
Uber’s presence in London has seen a tumultuous history, marked by TfL’s refusal in 2017 to renew Uber’s license citing public safety concerns.
Despite having its renewal rejected previously, Uber managed to win on appeal, and currently operates with a license due to expire by the end of September.
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Furthermore, a Supreme Court ruling in 2021 aligned with an earlier employment tribunal decision, awarding drivers the status and associated benefits of ‘workers’, which includes minimum wage and holiday pay entitlements.
Uber also became the focus of an international investigation led by The Guardian in 2022, uncovering their aggressive lobbying tactics and systems to elude police scrutiny as exposed by a hefty leak of over 100,000 documents.
In response to the investigation, Uber spokespersons vow to not make excuses for legacy issues. Under its present CEO, Dara Khosrowshahi, who succeeded co-founder Travis Kalanick in 2017, Uber seeks to reform and has recently celebrated a full-year of profitability in 2023.
FAQs about the Legal Action Against Uber by London Black Cab Drivers
Q1: Why are London’s black cab drivers suing Uber?
A1: They claim that Uber unfairly obtained its operating license in London and caused them to lose business illegally.
Q2: How much is the lawsuit against Uber worth?
A2: The legal claim is estimated at a minimum of £250 million.
Q3: Who can join the lawsuit against Uber?
A3: Any full-time or part-time black cab driver who operated between June 2012 and March 2018 in London, including retirees, is eligible to join.
Q4: Has Uber faced criticisms in London before?
A4: Yes, London’s TfL previously refused to renew Uber’s license due to safety concerns and Uber has faced legal challenges, including about the employment status of its drivers.
Q5: What does Uber say about the lawsuit?
A5: Uber has stated that the allegations are unfounded and that it operates legally in London with a full license.
Conclusion
The initiation of this substantial legal challenge against Uber by London’s black cab drivers underscores the deep-seated tension that has characterised the advent and growth of ride-hailing services in traditional taxi markets. The resolution of this lawsuit could have significant implications for gig economy regulation and competitive practices in the industry. With Uber’s history of disputes in London, this legal action adds yet another complex chapter to its operations in the UK.