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Why the Night Tube is good news for London’s businesses, but bad for Uber drivers

After years of repeated delays and broken promises, London’s first 24 hour tube service finally launches tonight (Friday) providing an all-night service that will run right through until Sunday evening.

While the initial roll-out will be focused on the Jubilee Line and parts of the Central Line, Transport for London (TfL) has plans for a more extensive service at the end of the year, encompassing more lines and routes and boosting the capital’s credentials as a 24 hour city.

Research released last week by Centre for Economics and Business Research estimates that by 2029, the Night Tube will have added £77m to London’s economy and created up to 2,200 extra jobs.

Similarly, a report by Volterra Partners for TfL back in 2014 estimated that every £1 spent on introducing the service would deliver £2.70 worth of economic benefit.

While it is too early to say whether these grand predictions of rumbling, nocturnal rolling stock bestowing pounds and as well as passengers at stations along the overnight route, the service is about to deliver a very real, immediate material impact to a wide range of businesses.

Hospitality

The benefits for pubs, bars and clubs of an all-night weekend tube service are obvious, despite TfL’s Managing Director, Mark Wild stressing that the service is ‘not just for revellers’.

Freed from the tyranny of the last train, partygoers will now be able to stay out longer, spending more and allowing more bars and clubs to stay open all night.

But perhaps an even bigger benefit is to hospitality workers themselves, many of whom live in the capital’s outer zones, whose late night journeys to and from work will now be cut by an average of 20 minutes.

Longer opening hours also mean more jobs and contracted hours for hospitality workers, not to mention the fact that a reliable overnight tube service will make late night work in restaurants, bars and pubs are more enticing prospect for those looking for work.

Retail

For a modern metropolis to truly claim that it is a 24 hour city it needs more than just its drinking holes to be open past midnight; retailers have to get on board with extended opening hours too.

Retail giant Tesco has already announced that seven of its stores along the Victoria and Central lines will trial new 24 hour opening times with a view to servicing night owls and early morning commuters, along with ‘Hydration Stations’ serving orange juice and water for thirsty late-night revellers.

Plenty more retailers are sure to follow suit as the opportunity to serve the 200,000 passengers who are predicted to make use of the Night Tube will be too good to pass up.

Property

House prices along the new Night Tube routes are expected to enjoy a noticeable uptick as the benefits of a reliable and convenient public transport system will make neighbourhoods along the route even more desirable places to live.

Research by online property firm emoov has found that properties along the Central and Victoria lines have increased by 3% in the past year, with further gains expected once the service begins in earnest.

Taxis and cabs

However, one industry that is likely to be hit significantly by the introduction of the new Night Tube service is the legion of private hire cars and taxis crawling through the capital’s arteries.

Along with night buses, taxi cabs have long dominated the lucrative post-11.30pm weekend journey home after nights out or one too many post-work pints.

Uber drivers and black cab stalwarts have been at each other’s necks in recent years, but with the 24-hour Tube some have been united in their opposition, claiming the new service threatens their livelihoods.

It’s not all bad news, Uber’s UK big wig Tom Elvidge told IBTimes this week that the US ridesharing giant expects the Night Tube to complement, rather than compete with, Uber’s London drivers.

He claimed that four in ten of the firm’s rides in London start or end at a tube or rail station, meaning the new service might even boost the number of Uber journeys on a Friday and Saturday night.

“We’re sure Londoners will continue relying on our app to help them get the last mile home safely, conveniently and affordably,” Elvidge said.

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