Uber taxi-hailing app does not break UK law, court rules

Uber scored a victory in London’s heated taxi wars on Friday after the High Court ruled the way the minicab app calculates fares does not break the law.

Mr Justice Ouseley ruled that the smartphone app contained in Uber minicabs cannot be legally classed as a “taximeter”, which is permitted in black cabs only. Taxi drivers said they would appeal against the decision.

Uber’s app calculates fares using GPS tracking of the distance travelled and time taken — black cab drivers claimed this is equivalent to taxi metering and therefore breaks the law. “The driver’s smartphone with the Driver’s App is not a device for calculating fares by itself,” the judge said in his ruling, which means that Uber cabs can carry on operating as usual.

The ruling comes amid an escalating battle between London’s black cab drivers and minicab-hailing apps such as Uber, which have seen a surge in popularity in recent years.

Last month, London’s transport authority proposed tougher regulations for minicabs in an effort to deal with the rising number of vehicles in the capital and complaints from black cabs. They argue Uber drivers operate in a similar way to them but without any of their obligations, including vehicle standards and a comprehensive knowledge of how to navigate London.

The decision by the High Court in Uber’s favour is a blow to the black cab industry, which has blockaded central London several times this year in protest.

Steve McNamara, general secretary of the Licensed Taxi Drivers Association, said: “The ruling is an irrelevance really as it has been overtaken by events because Boris [Johnson] is reviewing the private hire regulations, which insist that minicab companies give fixed fares at the beginning of a journey,” he said.

The driver’s smartphone with the Driver’s App is not a device for calculating fares by itself

Other minicab operators expressed their disappointment. Addison Lee, Britain’s biggest taxi company, claimed the judgment opens the door to a return to the “bad old days” of cabs charging what they like. “There are many other Uber business practices that also demand scrutiny by TfL and the courts,” said Andy Boland, its new chief executive.

Uber was quick to cheer the ruling, saying it was a victory for common sense. “We hope Transport for London will think again on their bureaucratic proposals for apps like Uber,” said Jo Bertram, head of UK and Ireland for Uber.

Transport experts said the debate will now return to TfL’s consultation on the rules for private-hire cars or minicabs, the category Uber falls into.

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“I think TfL will be relieved that this closes down one front in the taxi wars that they’ve become embroiled in. But equally they should expect those energies and frustrations to be diverted elsewhere,” said David Leam of business lobby group London First.

The decision will put more pressure on TfL and Boris Johnson to decide on how tough the new regulations will be. Last week, the mayor of London felt compelled to respond to the avalanche of criticism from Londoners, which saw around 130,000 sign a petition in support of Uber. The mayor admitted he had put himself on the wrong side of “a massive and growing constituency of people who use the app, and who swear by it”.

On Friday, his spokesman said: “There are huge challenges for the taxi and private hire trades, as well as legitimate concerns over increased vehicle emissions and congestion,” said a spokesman for the Mayor.

TfL said it welcomed the legal clarity and said it would continue to gauge public opinion on potential changes to private hire regulations.