Member Article

Analysis: Boris Johnson says Uber is ‘systematically breaking the law’ in London taxi row

As tensions between The Licensed Taxi Drivers Association (LTDA) and Uber reaches a peak, the Mayor of London has said the taxi-hailing app is ‘systematically breaking the law’. Boris Johnson’s comment follows last week’s announcement from Transport for London (TfL) detailing plans to enforce stricter regulations on the way in which Uber operates in the capital.

Yesterday the High Court called into question the way in which taxi operators work in the city. TFL and Uber are currently seeking guidance on whether the company’s smartphones are considered meters, which are outlawed for private hire vehicles.

Furthermore the transport body has also unveiled proposals to limit drivers to one operator at a time, as many of Uber’s drivers work part time across several platforms. Restrictions to ride sharing is also being discussed by TfL and the mayor.

Nowadays, there’s an app for everything - from ordering a pizza, buying your shopping and booking a taxi, the power of the smartphone is undeniable. The Hackney cab, or ‘black cab’ has operated in the capital for hundreds of years, and has maintained a stronghold on London’s taxi industry until now. Should the LTDA embrace technology and the inevitable change it will bring? Or should Uber follow the rules that have been in place for generations?

We spoke to several spokespeople in the city to better understand how one of London’s oldest industry has been turned on its head.

Glen Manchester, CEO of customer engagement firm Thunderhead, believes that the speed and passion with which Uber customers have rallied to its side is evidence that the taxi app has built a deep meaningful an enviable relationship with its customers that other brands should take notice of.

He said: “Whether or not TfL is in the right, what’s undeniable is the strength of the relationship between Uber and their customers. More than 100,000 people have signed the petition against TfL’s plans, which is testament to the depth of the loyalty Uber has built with its customers. Uber users aren’t just customers, they’re advocates, passionate champions of a brand they love, and which they don’t want to see maligned or degraded by advice that would restrict the very things they love it for.

“Brands should be looking to this mobilisation of Uber’s fanbase with fervent admiration, and asking themselves how they can foster a similar depth of relationship with their own customers. It isn’t just about having a popular and efficient service, although of course this helps. Uber is a wonderful example of how strong customer relationships are built through value-driven engagement, not tricky advertising or sticky marketing.

“The good news is that the principles of customer engagement that are so wonderfully manifested in the success of disruptive businesses like Uber can be applied to any business. The key to developing this kind of advocacy is ensuring that every time you interact with a customer, regardless of the context, you have a relevant conversation that creates some kind of value for the customer.

“Delivering value continuously drives trust in the brand, which in turn drives the strength of the relationship and advocacy. Look at how quickly and easily Uber has engaged its customer base, spurring 10 per cent into action on its behalf in a matter of hours. That’s an enviable position to be in, and one that’s been achieved because of the quality of the conversation Uber has with its customers.”

Whether or not TfL is in the right, what’s undeniable is the strength of the relationship between Uber and their customers

Liftshare has roughly 16,000 drivers offering car shares in London. Ali Clabburn, CEO and founder of the car-sharing website, has pinpointed the benefits app-based transport solutions have upon the city.

He said: “If we apply the three spare seat assumption [to 16,000 cars] – that free space could help take 48,000 vehicles off roads within the capital, as you read this right now

He continued: “London’s transport culture is unsustainable. Across the capital, stressed individuals pay to be herded into uncomfortable carriages and buses like cattle, while both cycle lanes and taxi ranks grow increasingly populous.

“The air quality and CO2 emission benefits of such a shift would be real cause for celebration, yet Transport for London reportedly seeks to quash the clear consumer demand for car sharing in London. Such a move would prove disastrous, and even costly, given the sharing economy’s habit of helping UK citizens out of transport poverty.

“Liftshare puts drivers and prospective passengers in touch to agree prices, with the cost of trips typically working out at just 12p per mile. This money then goes towards covering the driver’s travel costs. It is a true social enterprise that looks to bring sustainability back to our transport networks, and if rumours are to be believed, TfL’s attempts to block this progress can only serve to mystify and disappoint.

“We urge TfL to stop disrupting progress. Instead, they should take time to understand why the public have demanded car sharing in London, and open a dialogue with the key players in that sector for the good of all hard working, commute-weary workers in the capital today.”

“London’s transport culture is unsustainable. Across the capital, stressed individuals pay to be herded into uncomfortable carriages and buses like cattle, while both cycle lanes and taxi ranks grow increasingly populous.

Plan Insurance Brokers expect the Uber v LTDA high court ruling to sway in favour of black cabbies. Grant Georgiades, marketing director thinks black cab drivers are correct in believing that Uber drivers are plying for hire and metering, both of which are not permitted by current regulations.

He told Bdaily: “With nearly 1,000 new private hire drivers a month being licensed there will inevitably be an over-supply that will ultimately prove detrimental to the private hire drivers themselves by suppressing their income. Many of these new drivers have not been appropriately checked to ensure they are fit and proper people.

“Black cab drivers are heavily regulated, they are required to undergo extensive driver training (the knowledge on average takes 3 years to complete) and rigorous background checks and will soon be forced to outlay significant sums on new zero emissions vehicles. I’m all for free markets and competition, and as much as the cabbies have struggled to form a united response, I do believe black cab drivers are fighting with one hand tied behind their backs.

“I definitely believe the there is a public safety issue due to a lack of enforcement of existing rules by TFL regarding touting. We were also invited recently by the GMB drivers union to consult on how to prevent private hire drivers continuing to exploit flaws in the licensing system by not having valid insurance due to a lack of ongoing checks.”

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This was posted in Bdaily's Members' News section by Ellen Forster .