Member Article

Uber hails its lawyers as legal action launched against TfL over driver rules

US ridehailing giant Uber has launched legal action against Transport for London (TfL) as the battle over the regulator’s new private hire rules ramps up.

The rules in question, which were initially praised by the startup, are aiming to modernise the capital’s booming private hire industry and ensure the quality of drivers remains high as private hire companies put a squeeze on traditional black cabs.

However, one key component of the proposed regulations is the stipulation that all drivers would have to complete written English tests to ensure that they meet a minimum standard, a condition which Uber says would ‘threatened the livelihood of thousands of drivers’.

After making its objections known to TfL, the global startup, which is estimated to be worth billions of dollars, has now filed court papers this week according to City AM.

In taking matters to the courts, Uber is hoping for a judicial review on the new regulations as it intensifies its challenge to TfL.

Along with the English test, the rideshare giant also takes umbrage with three further conditions outlined in the new rules including; the requirement to alert TfL whenever it makes changes to its business model, the need to provide drivers with insurance even when they are not working and the demand that its customer contact centre must be based in England.

In a sign that the transport regulator is to robustly defend the new regulations, a TfL spokesperson said to City AM: “We responded to Uber’s letter and will be robustly defending the legal proceedings brought by them in relation to the changes to private hire regulations.

“These have been introduced to enhance public safety when using private hire services and we are determined to create a vibrant taxi and private hire market with space for all providers to flourish.”

The new rules have been criticised by the business community as having the potential to stifle innovation, with conditions to inform TfL of any changes to Uber’s app particularly worrying some observers.

Uber London’s General Manager, Tom Elvidge, is particularly critical of the hardening of the regulations which has occurred since Sadiq Khan became mayor.

“This legal action is very much a last resort,” he told City AM. “We’re particularly disappointed that, after a lengthy consultation process with Transport for London, the goalposts have moved at the last minute and new rules are now being introduced that will be bad for both drivers and tech companies like Uber.”

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