London black cab drivers plot £500m legal action against Uber

A group of London black cab drivers has hired solicitors to explore whether they can pursue legal action against Uber, in an effort to claim more than £500m in alleged lost earnings.

The Licensed Taxi Drivers’ Association, which represents 11,000 cabbies in London, has engaged Mishcon de Reya to determine if its members have a case against the ride-hailing app.

The cabbies’ move is the latest stage in a protracted battle between the taxi drivers and Uber, as London’s transport authority struggles to strike a balance between the interests of the traditional taxi industry and newer tech-based transport companies.

Last month, the chief magistrate overturned a ban on Uber that was put in place by Transport for London last year, awarding the ride-hailing app a 15 month licence to operate in the capital. Uber appealed against the initial ban and kept providing its services in London ahead of last month’s decision.

The LTDA believes its black cabbies, who have average earnings of £50,000 a year, have each lost approximately £10,000 a year in the five years since Uber began operating in London.

Steve McNamara, general secretary of the LTDA, said: “We’ve been approached by a number of members to help them explore whether there would be grounds for a potential class action on behalf of all taxi drivers against Uber.

“We are in the very early stages of obtaining legal advice from leading law firm Mishcon de Reya on whether this is a possibility.”

It is unclear on what grounds the LTDA may sue Uber. A spokesman for the ride-hailing app declined to comment on the matter on Tuesday, saying there was no apparent basis for legal action.

Gavin Foggo, head of litigation at solicitors’ firm Fox Williams, said: “The cabbies have no obvious cause of action against Uber. You can’t normally sue a competitor merely because they are a competitor.”

A spokesperson for Mishcon de Reya could not be reached for comment.

London black cab drivers have long alleged that Uber’s presence in the UK capital has caused them more problems than simply having a new competitor that offers lower fares to passengers.

Eddie Townson, chairman of minicab association the Private Hire Board, whose members are not affiliated with the LTDA, said Uber is “so big and deep pocketed” it can run at a loss while “regular drivers cannot”.

London is Uber’s largest European market, with 3.6m users and about 45,000 drivers.