Download Unicorn Signals App

Powered By EquityPandit
 Signals, Powered By  EquityPandit

Uber Gets Slapped with £250 Million Lawsuit from London’s Black Cab Drivers 

Uber's operating system failed to meet the requirements of the UK's private hire vehicle legislation.

Thousands of black cab drivers in London have sued Uber Technologies Inc. for hundreds of millions of pounds, accusing the firm of illegally operating in the capital city.

According to RGL Management Ltd, the firm handling the lawsuit, alleges that Uber obtained an erroneous licence to operate in the city and made illicit profits for at least six years starting in 2012. Uber’s operating system failed to meet the requirements of the UK’s private hire vehicle legislation.

The claimants further say that Uber’s goal was to illegally gain market share and, as a result, take business away from established black cab drivers.

RGL added, “Uber knew this at all material times; and that in order to obtain its licence Uber deliberately misled Transport for London as to how that operating system worked.”

The new issue reignites existing tensions for the ride-hailing company, which has had numerous setbacks since entering the London market. Transport for London originally declined to renew its operating permit in 2017, citing safety and regulatory concerns, and then again in 2019. Uber was victorious both times in appealing to decisions.

It was also compelled to change its business model after the UK Supreme Court declared that its drivers needed to be reclassified as workers, resulting in a heated employment fight over holiday and pension benefits.

The claims are old and “completely unfounded,” Uber’s spokesperson said. “Uber operates lawfully in London, and is fully licensed by TfL.”

More than 10,800 drivers have joined the suit, and potentially more will come. “It is anticipated that the total claim value could ultimately exceed £250 million ($313 million) including interest,” RGL said.

The protest follows the internet giant’s decision to allow app users to hail black cabs as part of its expansion aspirations to become a one-stop transportation hub that also accepts intercity train and car rental reservations.

Get Daily Prediction & Stocks Tips On Your Mobile