Black Cab Regulation vs Uber
The U.S. Experience
An interesting US Blog discusses the need for regulation and reflects on the Uber experience in the States. It makes the point that regulations are particularly necessary when competition within a market has the potential to exploit consumers and damage society. ‘In such instances, regulations are intended to benefit consumers and drive a healthier business environment. However, the modern market place deems regulations as anti-innovation and anti-competition. It’s often argued that rules and regulations are unnecessary because market forces can effectively regulate companies.’ There is a modern trend towards deregulation but certain industries require it. The point is made that an unregulated taxi industry is harmful to everyone – consumers, driver and operating companies.
Shockingly, Uber has been involved with at least 173 lawsuits. Protests have been staged in Germany, Spain, France, and the UK, and serious incidents involving passengers have been documented. Uber executives were even arrested in France in June 2015. In December 2014, Uber was banned in Spain and in two cities in India. Uber continues to be involved in disputes with several governmental bodies, including local governments in the U.S. and Australia. Despite all this, Governments have been largely unable to stop Uber’s operations in their jurisdictions because its operations are conducted primarily over the Internet.
London Protests against Uber
When considering Black Cab Regulation vs Uber regulation, a review of recent events draws out the issues. On June 11, 2014, London-based Hackney carriage (black cab) drivers, members of the Licensed Taxi Drivers Association, disrupted traffic as a protest against Transport for London’s refusal to stop Uber’s calculation of fares based on distance and time taken. They claimed it infringed upon their right to be the sole users of taximeters in London. In the week following, Boris Johnson Mayor of London, stated it would be difficult for him to ban Uber “without the risk of a judicial review”; however, he expressed sympathy for the view of the black-cab drivers.
That judicial review eventually took place and on 16 October 2015, after TfL brought a case to the high court to determine whether the way Uber’s app calculates a fare falls under the definition of a taximeter, it was ruled that the app is legal in London. This has caused much upset – In February 2016 a protest took place in London and organisers say about 8,000 drivers took part to highlight threat to their trade from TfL’s licensing of taxi-hailing app.
The Guardian in its coverage of Black Cab Regulation vs Uber brings out a quote from “a 47-year old taxi driver from Kent, who would only give his name as Jon, said: “We’re not worried about competition: we’ve had minicabs and Addison Lee for years. Why has this American company come here and been given free rein? I spent three years doing the knowledge at a cost of £6,000-10,000, and bought a £40,000 cab that’s wheelchair accessible.”
A move by Uber to let Black Cab rivals use its app for nothing for 12 months was recently dismissed as publicity stunt.
A level playing field?
An Uber driver needs to apply for a Private Hire licence pass a few tests, mainly topographical skills assessment tests, Have a medical check, have an ‘enhanced’ CRB (Criminal Records Bureau) check (now known as a DBS (Disclosure and Barring Service) check), and you have to have a full UK driving licence as well as buy or hire your own car. Whilst these requirements are not trivial, they fall short of the standards required of Back Cab drivers and their vehicles. How these very different systems can coexist, protect the public, and provide a level playing field is a tough question. In a world of changing rules and technologies, the nature of the traditional taxi driver role is also under threat.
Of course, safety, quality and conduct standards also apply to Black Cab drivers. Taxi licenses, particularly the Green Badge, often take a huge effort to qualify for. Following Black Cab complaints, decisions of TfL (Transport for London) and the PCO (Public Carriage Office) to refuse to renew taxi licences whether it be on the basis of criminal convictions, failure to notify or issues of medical fitness can mean the loss of livelihood for taxi drivers. Due to the complexities of taxi legislation, it is vital that drivers seek professional help in such circumstances.
We are here to help!
Taxi Driver Defence Barristers are an expert team who specialise in taxi licence refusal and revocation appeals. Our taxi barristers have had significant success in challenging the decisions of TfL and the PCO. Our barristers don’t underestimate importance of guiding clients through the complexities of taxi legislation. If you need to make a taxi licence revoked appeal or a taxi licence refused appeal, we make sure our clients understand at each stage what is happening and why.
Please contact us to discuss your taxi license refusal or revocation.