- Over 10,000 of London’s black cab drivers have signed up to sue Uber claiming loss of earnings.
- The group legal action claims Uber broke the law from June 2012 to March 2018.
- Uber has strongly denied the claims and insisted that it operates lawfully in London.
- See more stories on Insider’s business page.
More than 10,000 black cab drivers in London have signed up to a group legal action against Uber that could be worth in excess of £200 million ($280 million).
The action centers on a claim that Uber broke the law in the UK capital between June 2012 and March 2018, when it allowed its drivers to accept bookings directly when they were not licensed to do so.
London’s black cabs are an iconic representation of the city, but its drivers say their business has been decimated by Uber.
They allege that Uber breached the Private Hire Vehicles (London) Act 1998, which stipulates cabs, including ride-hailing cabs, in the city must be organized through a centralized office. London’s black cabs operate under different rules that allow pedestrians to hail one directly from the street.
Uber has denied the allegation. No claim has been issued as yet against Uber.
Should the claim reach the courts, it would mark the latest regulatory headache for the ride-hailing giant in one of its most important markets.
In 2020, Uber successfully appealed a decision by London’s transport regulator, Transport for London, not to grant it a new license to operate in the city. The regulator had previously cited numerous safety failures around how Uber operated.
The company was also dealt a blow by the UK Supreme Court in March, which ruled that it must classify its some 70,000 drivers in the country as workers.
The latest action, known as the BULit21 campaign, is being headed up by litigation firm RGL Management and law firm Mishcon de Reya. The companies believe cab drivers operating in the city between June 2012 and March 2018 can sue Uber for a loss of earnings and that as many as 30,000 drivers could be eligible to join the campaign.
RGL and Mishcon said the claim could be worth in the region of £25,000 per driver in lost earnings, giving it an overall value of more than £200 million ($283 million).
Uber said the allegations were “completely unfounded.”
“We are proud to serve this great global city and the 45,000 drivers in London who rely on the app for earnings opportunities, and are committed to helping people move safely,” a representative said in a statement.
James Hayward, the chief executive of RGL, said reaching 10,000 drivers was a “landmark moment”.
“The rapid growth of this claimant group really is testament to the number of cabbies who suffered at the hands of Uber’s failure to adhere to the relevant legislation,” he said.
“We are extremely confident in the merits of the claim and are lending the BULit21 group our full support and deep expertise in bringing large and complex legal actions to court.”
The campaign comes after Uber agreed to recognize the GMB trade union in the UK for its private-hire drivers.
Axel Springer, Insider Inc.’s parent company, is an investor in Uber.