Clash of the Cabbies: Uber Stirs Up London's Taxi Trade Once Again

Uber have remained a divisive figure in the UK taxi and private hire industry, since they first landed on our shores back in 2012. Their recent initiative to incorporate London black cabs into its app by 2024 has sparked a debate in the industry, to say the least. 

Unsurprisingly, their announcement of its plan to add black cabs to its London offering has been met with strong opposition from the taxi community. This move is seen by many as a continuation of Uber's disruptive presence in the city since its arrival. 

The response from London's taxi trade has been predominantly negative. Steve McNamara, General Secretary of the LTDA, stated, “There is no demand for this partnership... Neither the LTDA nor any other taxi trade groups were consulted in advance of this unilateral announcement”.  

The London Cab Drivers Club (LCDC) reminded drivers of Uber’s past regulatory challenges and questioned the company's compatibility with the London taxi trade's values. In a statement on X, the LCDC said: 

“We remind drivers;  

This company (or group of companies), has twice been refused a Private Hire Operator licence by the regulator Transport for London.

A company that failed to inform the Metropolitan Police Service of serious crime. 

A company that used software to avoid regulatory and law enforcement. 

A company that fought tooth and nail, exhausted every legal avenue in a futile attempt to deny worker rights. 

A company forced to settle a multi-million pound HMRC claim. 

A company currently in dispute with HMRC due to the use of Tour Operators Margin Scheme. 

A company that is currently in breach of a court order in relation to algorithmic transparency. 

The committee believe this is a company the London taxi trade should not be associated with.” 

Many drivers are echoing this sentiment online, with many calling for cabbies who sign up to be struck from any cab driver groups or unions.  
 
One driver commented, "Any London BC driver who has one ounce of integrity or dignity would not want to assist or have any association with this organisation". 

Uber's Pricing and Operational Model for Black Cabs  

A lot of concern has been raised about Uber’s pricing model, however, it would appear that some fears are unfounded. Uber’s ‘Black Cabs’ will not be subject to surge pricing. Pricing will follow the regulated metered amount, plus a 'Booking Fee' of £2 on digital bookings.  

While this model offers upfront fare ranges and destinations, giving drivers the option to accept or reject offers, the industry's reaction suggests scepticism about how this system will align with the traditional taxi service ethos. 

The Broader Industry Perspective  

Other industry leaders have voiced their perspectives. Matteo de Renzi, CEO of Gett, emphasized respect and fairness towards the taxi trade, stating, “We are not here to disrupt... We are here to improve - to give the drivers, who earned their badge with years of hard work, more options to monetise their time behind the wheel”.  

However, Liam Griffin, CEO of Addison Lee, criticized Uber's business practices, highlighting the impact on local drivers and the industry's reputation. He said: 

“... since its arrival in London in 2012, Uber’s operating practices and predatory pricing model have threatened the livelihoods of hard-working local black taxi and private hire drivers in the capital. Its poor record on safety and driver support has undermined the reputation of the industry and created a race to the bottom that has damaged us all." 

“London’s black taxi drivers have always been vocal in their opposition to Uber – and for good reason. The tech firm has time and time again proved itself to be the enemy of healthy competition and fair prices in the sector. Uber will have its work cut out to win over black taxi drivers who are rightly extremely sceptical of the motives behind today’s move” 

Uber's integration of black cabs into its app is clearly causing a stir. Some are simply claiming it’s a publicity stunt, but understandably plenty of people are worried.  

While it could offer drivers new opportunities, the strong opposition from the taxi trade reflects deep-seated concerns about the future of the traditional taxi industry in London.  

However, as the cost-of-living crisis continues, it could well be too much of an earning opportunity for some drivers to pass up. As the situation evolves, it remains to be seen how this development will shape the landscape of the most iconic taxi services in the world.