Uber hit with £500 million lawsuit by London cab drivers

Uber CEO Dara
Khosrowshahi.
Getty

• Uber is facing a £500 million ($650 million) class
  action lawsuit from London black cab drivers.
• London cabbies claim that Uber’s launch in the British
  capital directly led to a loss of earnings for
  drivers.
• Law firm Mishcon de Reya is bringing the High Court
  action on behalf of black cab drivers.

Uber is facing a £500 million ($650 million) class action lawsuit
from some of its most vociferous detractors — drivers of the
iconic London black cabs.

Thirteen trade unions and London cabbie representatives are
coming together to pursue High Court action against Uber. It’s
another headache for CEO Dara Khosrowshahi in London after
Uber just came through a battle to
hold on to its operating licence in the British capital.

Organisations, including the Licensed Taxi Drivers’ Association
which alone has 11,000 members, claim that Uber has operated
“unlawfully” since launching in London in 2012 and had the
intention of “causing loss to the licensed taxi trade.”

Put simply, the lawsuit aims to demonstrate how Uber’s arrival
has directly led to a loss of earnings for London black cab
drivers. The more drivers who join the action, the higher the
loss of earnings.

London Cabbie Group Action, which is coordinating the
lawsuit, has worked with economists to estimate that it could
stack up to £500 million in lost revenue over the past five
years. A previous estimate put it at
double this.

Law firm Mishcon de Reya, which has experience of class action
lawsuits (or group action as they are known in the UK), will
bring the claim on behalf of the London Cabbie Group Action.
Harbour Litigation Funding is funding the dispute.

Business Insider has contacted Uber for comment. The company has
40,000 drivers in London.

It has agreed to be more transparent and provide better training
for drivers as part of retaining its licence in June.

“We recognise that there needs to be a level playing field
between minicabs and licensed cabs on London streets but we
believe Uber has operated unlawfully, resulting in a loss of
earnings for many qualified licensed cab drivers,” said Steve McNamara, the general
secretary of the Licensed Taxi Drivers’ Association.

Black cabbies have a long history of antipathy towards Uber
rivals.

Cab drivers have staged blockades
in parts of London in protest at Uber, while the vitriol is
often most pronounced on social media, where cabbies often post
images of Uber drivers involved in crashes.

The below post was retweeted by the Licensed Taxi Drivers’
Association on Monday.