The ride-hailing app Uber is at the centre of a crucial high court case as London’s transport authority seeks clarity on whether smartphones can lawfully be used to calculate fares.
After a day hearing evidence from all sides, the judge is widely expected to give his decision on Tuesday. If he rules against Uber, the verdict will be viewed as a victory for black-cab drivers and other minicab groups who feel the disruptive tech-focused competitor has not been regulated firmly enough during its three years of rapid growth in London.
Martin Chamberlain QC, appearing for Transport for London (TfL), told the judge it had taken the view from the outset that the smartphone app was lawful.
But because the contrary view was arguable and the narrow point of law involved is difficult, TfL had come to the high court in London to seek clarification.
Chamberlain told Mr Justice Ouseley: “TfL brings these proceedings in its capacity as the regulating authority for both private hire and (black cab) taxis in London.”
The crucial issue is whether the phones, which use GPS technology and connect to external servers to carry out calculations, are taximeters, which are prohibited in private hire vehicles in London.
An Uber spokesman said: “We believe the Uber app on a partner-driver’s phone is not a taximeter, and TfL – the regulator – shares this view. We are looking forward to getting binding clarity on this issue in the high court. However, the outcome of the case would not affect Uber’s licence in London or its ability to operate here.”
Uber now has 18,000 registered drivers in the capital and a growing customer base, attracted by the service’s convenience and competitive fares.
But detractors criticise its tax arrangements and say Uber drivers are not as knowledgeable as traditional cabbies. The Guardian has also exposed a breach in its driver approvals process, described as unique by Uber.
Uber, which is backed by investors including Goldman Sachs and Google Ventures, argues that a taximeter is very different to its own technology. Taximeters are closely regulated by TfL in return for black cabs getting certain privileges, which include being allowed to drive in the bus lane.
The hearing included submissions from Uber London Ltd and the main trade bodies: the Licensed Taxi Drivers Association and Licensed Private Hire Car Association.
Black-cab drivers, several of whom were in court on Monday along with Uber’s UK head, Jo Bertram, have demonstrated in the capital against TfL’s handling of regulation for private hire companies, in particular Uber, and suggested that the ride-sharing app puts public safety at risk.
Uber has hit out against proposals to tighten private hire regulation following TfL’s launch of a consultation on a series of measures that would affect minicab drivers in London.
