Uber Slapped With $250 Million Lawsuit by Black Cab Drivers in London

Thousands of black taxi drivers in London have filed a case against ride-hailing giant Uber Technologies Inc., claiming that the company is operating illegally in the capital and demanding hundreds of millions of pounds in damages.

According to RGL Management Ltd., the plaintiffs allege that Uber obtained an unfair license to operate in the city and gained illicit profits for at least six years beginning in 2012. According to the legal team bringing the lawsuit, Uber’s software did not meet the standards set by the UK’s regulations governing private-hire cars.

The plaintiffs contend that Uber knowingly provided false information to Transport for London (TfL) about the functionality of its app in pursuit of a business license to operate in the city. According to litigation management company RGL Management, the lawsuit may be worth at least £250 million, with each cabbie possibly receiving £25,000.

The ride-hailing app has encountered several obstacles since entering the London market, and this latest fight brings up old grudges. In 2017 and again in 2019, Transport for London declined to renew Uber’s operating license, citing safety and regulatory issues. Both times, Uber successfully appealed against such rulings.

The UK Supreme Court’s decision to reclassify its drivers as workers ended a contentious employment battle and forced the company to rethink its business strategy. According to the verdict, its drivers are entitled to paid time off and pensions.

The software giant faces legal action after deciding to integrate black taxi hailing into its app. This move is part of its strategy to become a comprehensive transportation center. Additionally, the plaintiffs assert that Uber’s objective was to “unlawfully… take business from existing black cab drivers,” as stated by RGL.

The plaintiffs’ legal team at Mishcon de Reya has taken their case to the High Court. As far back as anybody can remember, Uber has disregarded London’s regulations governing private hire cars.

Two thousand five hundred French taxi drivers sued Uber in December 2023, and Uber prevailed.