London’s iconic black cab drivers are taking legal action against ride-hailing giant Uber, seeking £250 million (€291.7 million) in compensation. The lawsuit alleges that Uber obtained its license to operate in London through illicit means, misleading Transport for London (TfL) about its business model.
According to the legal firm Mishcon de Reya and claims company RGL Management, which are representing the drivers, Uber’s license application to TfL lacked transparency. Uber purportedly assured TfL that it would handle all bookings internally. However, in reality, the company frequently delegated bookings to individual drivers, potentially violating local transport regulations.
Potential Compensation for Drivers
If successful, the lawsuit could result in significant compensation for London’s black cab drivers. Each of the 10,000-plus drivers involved in the legal action stands to receive around £25,000 in damages, as per Mishcon de Reya and RGL Management.
Uber’s Response and Previous Legal Battles
Before facing this latest lawsuit, Uber had attempted to appease London’s black cab drivers by allowing them to accept rides through its app. However, the legal battle underscores the ongoing tensions between traditional taxi drivers and ride-hailing companies.
Global Trend of Legal Challenges Against Uber
The lawsuit in London mirrors similar legal battles against Uber worldwide. From Australia to Paris, thousands of taxi drivers have sued Uber, alleging that its operations have diminished their earnings. While Uber prevailed in some cases, such as in Paris, where a commercial court ruled in its favor, it agreed to a $178 million settlement in Australia, resolving a lawsuit brought by 8,000 taxi drivers.
Australian Settlement: A Landmark Case
Maurice Blackburn Lawyers, representing the Australian taxi drivers, hailed the proposed settlement as a significant victory. Michael Doneely, a principal at the firm, emphasized Uber’s reluctance to acknowledge its responsibility for the drivers’ losses. The proposed settlement, one of Australia’s largest class action settlements, signals a crucial moment in holding Uber accountable for its actions.
Uber’s Perspective
In response to the Australian lawsuit, Uber highlighted the positive impact of ridesharing on Australia’s transport industry. The company emphasized its contributions to state-level taxi compensation schemes and expressed a commitment to providing safe, affordable, and reliable transportation services to millions of Australians.
As the legal battle unfolds in London, the outcome could have far-reaching implications for the relationship between traditional taxi services and disruptive technology platforms like Uber.