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'Legacy' London Car Hire Companies Lawyer Up Against Uber

An anonymous reader writes with The Stack's report that: The London Private Hire Car Association (LPHCA) has engaged a major firm of lawyers to present its case against Uber in the UK capital, citing lack of continuous insurance checks, Uber's tax avoidance practices and even 'loitering' Uber drivers as reasons to impose regulations which would eliminate Uber's competitive advantage in London. A lot of Londoners like to have that competition around, though.

23 of 239 comments (clear)

  1. fair competition by azalin · · Score: 5, Insightful

    While I do think taxi prices are too high, I still have a couple of problems with the uber approach. The main reason for the high prices are quite a lot of regulations imposed on classic taxi companies. Uber wants to take a piece of the cake without following the rules everyone else has to abide.

    1. Re:fair competition by mrbester · · Score: 2

      The only cabbies that have spent large sums of money for their "exploitation licence" would be the members of LTDA - who are not in LPHCA - as it isn't cheap to train someone to have a map of London in their head that can adjust to cater for temporary things like roadworks and congestion.

      Thus the black cab drivers who you try to target (there isn't such a thing as the medallion scheme here) have nothing to do with this story. They are completely separate and have their own axe to grind against Uber, it being just an extension of their own anti-private hire ethos (for the general public; chauffeur services are ignored).

      --
      "Wait. Something's happening. It's opening up! My God, it's full of apricots!"
    2. Re:fair competition by drolli · · Score: 5, Insightful

      The main problem which i have with uber (and why i dont use it - remark: i live in Germany) is that normally the licenses which you have to have to operate a taxi service work in two directions: you are allowed to do business in a give narea, but you also have to, even if certain times are not profitable for you.

      And yes i appreciate that if i missed the last possible train connection at 1am in a town with 20000 people living there, still there usually will be a taxi at the station within 15 minutes, which takes me the last 20km for the same price.

      In a world where we allow uber to cut away the ham (e.g. daytime trips to hotels/business) for taxi businesses, tey would clsoe down operation in such areas, and the price for this ride probably would rocket in the sky, and uber would say "oh we just enable communication between customer and provider", and the driver would say "oh, i am a business, and it did cost me 100 Euros to get here".

      The point is simple: in areas whit a lower density of cars driving at night, the customer is at a systematic disadvantage (since he can not choose the provider, but the provider can easily choose the customer because 20km by car over an nearly empty road may be very fast).

      So be careful what you wish for.

    3. Re:fair competition by KGIII · · Score: 2

      Markets, like all freedoms, come with restrictions for the protection of the commons. To put this into sensible terms, I'm free to kill you - I don't have a right to do so. You can not have a perfectly free market, it can not and will not happen. If you want one the provision the infrastructure and other assets. I'll eagerly watch to see how it works out for you.

      We take all of our freedoms and put them into a communal pot (we call this society) and, from that pot, we withdraw our rights and leave enough to ensure that everyone gets their share of stew from the pot. Where those boundaries and limits are is subject to debate but the idea of complete and total freedom has never been very good for those who are somehow unable to act on those freedoms and thus we ensure they're given some measure of protection. It's for the good of the whole and yes, it does mean you don't have the right to do anything you want.

      Again, we can debate where those lines belong but there's no way an extreme version is ever going to work just like no pure political ideology has ever been successful on a large scale. No one economic model has been successful, in its pure form, for any real length of time either. Go back to the communal pot of stew analogy if you find this confusing.

      --
      "So long and thanks for all the fish."
    4. Re: fair competition by EvilAlphonso · · Score: 2

      Funnily enough, in some places in Europe there are different driving license requirements for the cab drivers and the bus drivers. Because they tend to drive 8+ hours a day and clock insane mileage in a year, unlike the average driver.

      • Annual full medical checkup
      • Annual driving test
      • Regular inspection of the vehicle (time-based or mileage based, whichever is reached first)
    5. Re:fair competition by EvilAlphonso · · Score: 4, Interesting

      So if Uber takes hold, the bar owners will convince government to provide a Post Office equivalent of a taxi service. Price will be low, but it will be a single bus that takes all the patrons from that area, travel all around the town and drop them in their homes over the next six hours.

      Actually such a service is already provided in Luxembourg, for example. On weekend nights, you have a free bus service from the party areas to the residential areas and the train station. It didn't require Uber to take hold, it was just done to reduce the amount of accidents caused by drunk driving. It's very successful.

    6. Re:fair competition by Kjella · · Score: 2

      Their PR arguments also hold no water. Let's assume that all their arguments about safety, quality, crime, and so on are all true. Why should we not have the choice anyway to pick who drives us? I am happy driving a friend to a location, they are happy to drive me, people drive themselves, yet somehow cabbies have twisted this into licensed uber drivers as being the best way to get yourself killed. So the regulations that largely exist for all drivers such as not being drunk, having insurance, having a safe car, having a licence, all make sense for normal drivers; so why don't they make sense for Uber drivers. Does the uber app somehow make them worse drivers?

      You might say pretty much exactly the same about cooking, but I still think it's fair to hold professional food serving businesses to a different standard than me inviting a friend over for dinner. As for insurance, the rates reflect the risk and letting commercially operated cars pool with your average commuter unfairly shoves their risk over on us. I don't see a problem with Uber being required to check if you are properly licensed to transport strangers for money before you're allowed to participate. This isn't a phone book, Uber is taking a cut for every ride. Imagine a P2P program with a central server that charged you to pair up, if you want to download game of thrones season one that'll be $0.50 of which we'll take $0.10 and the uploader $0.40. Oh and the peers are legally responsible for whether the files are legal, we're only a matchmaker. How long do you think they'd be in business?

      --
      Live today, because you never know what tomorrow brings
  2. Uber is at least as good by EmperorOfCanada · · Score: 3, Interesting

    What I have read in the independant studies is that Uber drivers with their little GPS systems are just as good cost wise and in most cases drivewise as a full on London Cabbie who has studied "The Knowledge". The key is that while on some journeys the cabbie will be more proficient the extra cost more than evens it out with Uber. Except that because the Uber navigation system is getting better and better even that gap is narrowing. Also most journeys are pretty straightforward. You go out to main road A drive until near the destination, and then pull off main road A to the destination.

    Then Uber brings the whole modern technology to bear. The app, the information feedback, etc. So about the only real thing left for the cabbies is to defend their monopoly seeing that they have potentially no natural advantage and thus no defence moored in reality. The problem with bending the rules of reality is that eventually they snap and the further and longer you bend them the worse the recoil will be. So at this point they might be able to modernize, take the hit on their monopoly value, take a hit on their wages and survive. But if they hold uber at bay for a number of years the flood will come in and will wash them away. Quite simply the harder they push back the harder reality will try to find away around. For instance a new batch of politicians might sweep into office with the promise of eliminating their monopoly. Thus on Monday they are safe and on Tuesday there is pretty much only Uber standing.

    But the key argument that is used is that because the government granted them this monopoly it is the governments problem if they are ruined by taking it away. This holds no moral water; they thought that they were buying a licence to be able to ruthlessly exploit the people of London. They thought wrong. I have zero pity for what comes next.

  3. Against the law by cerberusss · · Score: 2, Insightful

    Haven't we had this discussion multiple times before?

    Yes, Uber gives you a lower price.
    Yes, it creates competition.
    Yes, they act against almost all local laws.

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    1. Re:Against the law by Mashiki · · Score: 2

      Yes, but idiots keep pointing out how illegal Uber is without stopping to think about whether those laws are just.

      Oh the laws are just, tell me something what part about requiring carrier insurance(including the minimum required for liability), having a chauffeurs license, and operating with a business license and having the mandated tax requirements for provincial/state and federal are unjust. Uber doesn't want to have any of these on their drivers, that's what the problem is.

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      Om, nomnomnom...
    2. Re:Against the law by Zocalo · · Score: 4, Insightful

      Unjust or not, the issue then becomes one of whether or not it acceptable to try and change a law by wilfully violating it - as Uber et al are doing in some of the locales they are operating in - with the implication of whether that slipperly slope is *really* one that you want to go down, and especially so when it's a corporation making that decision just because it's inconvenient to their business model/profit margin. In some cases, sure, mass civil disobedience is necessary to bring about change, in others a lone individual might do as a trigger (Rosa Parks, for instance), but generally those are for far more egregious or morally corrupt laws than the kind of bureaucratic red tape and entrenched industry regulation that Uber is opposing.

      Yes, much of that legislation is unjust, anti-competetive and so on, just as Uber is claiming, and some of it is also there in order to at least try and establish a minimum standard of safety and service. The correct process for Uber and the like to take is to challenge the unjust, anti-competetive laws first, potentially citing public demand for their services, *then* start operations if (and only if) they can successfully establish a framework that enables them to operate legally and in compliance with the safety and service legislation. Starting operations regardless and dealing with the legal fallout might be acceptable to them, possibly even considered as an acceptable risk within their business model, but it also smacks of "we're above the law" arrogance, which will lose them some of the public support they might have had if they were purely fighting it through the courts and better discriminating between the two sets of rules. Factor in the stories of how Uber treats its drivers when things go wrong, drivers having their cars taken of the road, and even the issue of their status as contractor or employee, and it's easy to see how people who might otherwise be supportive of Uber are not.

      --
      UNIX? They're not even circumcised! Savages!
    3. Re:Against the law by Mashiki · · Score: 3, Informative

      Because you said so, right?

      Since the courts have said so. Unless you're saying that you don't believe in the rule of law.

      Uber provides additional insurance while carrying a fare, and insurance premiums are already assessed for mileage which accounts for the additional mileage between fares.

      And that isn't legal in many places of the world. The vehicle itself has to have the insurance coverage directly on it. Which isn't happening.

      A worthless thing which does none of the things it is claimed to do.

      Except it has a higher level of testing, requires the person to know and understand local laws before passing, and it's a prerequisite in many cases for carriage insurance for taxis. And in many places is the requirement to waive liability in the case where a passenger refuses to use a seatbelt and so on.
       

      It's easy to do people for taxes. But there's plenty of unjust fees and taxes.

      Really? I guess that explains why uber drivers aren't paying their taxes as required by law. And why uber is refusing to pay taxes like a taxi company.

      False. You're a liar.

      Well, I suppose that makes you an idiot who doesn't understand law.

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      Om, nomnomnom...
    4. Re:Against the law by fluffernutter · · Score: 2

      The thing is, you live in a country that is governed entirely by a full legal system. Move to a place that doesn't have a legal system then and tell us how that works out for you.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
  4. Before anyone bangs on about bedallions and so on by serviscope_minor · · Score: 4, Interesting

    Before anyone starts with the whole "medallion" thing, that's not a thing in London. If you want to publicly tout for business (i.e a black caps), you have to do "the knowledge" which is a very extensive and tough test for knowing your way around without a stanav. And no: having a sat nav is not remotely equivalent to actually knowing your way around

    To be a vehicle hired otherwise (phone, internet), anyone can set up with the appropriate insurance and a few other bits and bobs. It's not hard and uber is not in any way "sticking it to the man". But surprise, surpirse, the other cabbies get pissed off when, despite the rather liberal regulations which never blocked uber from existing in London, uber still likes it's old unfair competition things like flat-out doing illegal stuff and avoiding tax.

    At this point, it's known that uber will do anything for a buck, illegal or otherwise. If you use uber especially somewhere like London, you're part of the problem.

    --
    SJW n. One who posts facts.
  5. Re:Before anyone bangs on about bedallions and so by ioErr · · Score: 2

    I'm not defending Uber, but what, as a passenger, do I gain by having the wetware in the taxi driver's head do the path-finding instead of the software on his computer? Even if the software is inferior right now it will continue to improve, unlike humans, and if the Uber driver takes longer to get me to where I want to go then I will continue to use his wetware competitors.

  6. Re:Idiot by Anonymous Coward · · Score: 2, Informative

    It isn't a monopoly, since all the black cabs are not owned by one company. Try again.

  7. Re:Government monopolies are not fair competition by Anonymous Coward · · Score: 3, Insightful

    Fact is two people should be able to enter into their own contract

    So buy up all the roads you're going to be using, and select anyone you want to drive you along them. Now everyone involved in the contract is in agreement, otherwise...

    The rest of us should be able to do as we wish.

    ...wanting to "do as you wish" with other people's property makes you a thief and a leech.

    The excuse for the taxi monopoly

    There is no monopoly in London. There are regulations for black cab drivers (which you can hail in the street), and regulations for private car hire (where you call up / use an app / whatever).

    So explain to me why a taxi license costs $1M?

    This is about London, not the USA.

  8. Re:Before anyone bangs on about bedallions and so by nogginthenog · · Score: 2

    The Knowledge is outdated and is easily replaced by GPS. Of course you need local knowledge but not 30,000 streets.

    I rarely use black cabs as London's public transport system is excellent. The only cabs that I have been ripped off in were black cabs. Taking the long route or having no idea where they was going (Heathrow to Twickenham would you believe). The legally required to take you stuff is bullshit and you know it!

    The design of a black cab is perfect for the job. Seats 5-6 people with luggage and easy to get in and out of.

  9. Re:Before anyone bangs on about bedallions and so by JustAnotherOldGuy · · Score: 2

    >I'll put it this way: surely you've seen footage of traffic going around L'Arc de Triomphe in Paris, or the Coliseum in Rome (if not, look it up. London has Marble Arch). Do you think a self-driving car, such as we have today or even in the next ten years can cope with that?

    Excellent point, and one I've made repeatedly to no avail. People here on slashdot want self-driving cars soooooooo bad that they'll ignore anything that might harsh their buzz or introduce some of that goddamn reality into their wet dream of self-driving cars.

    In my opinion the only way you'd ever get a self-driving car to navigate the L'Arc de Triomphe safely is if they were all self-driving cars in that traffic nightmare.

    I've also mentioned the problems with roadworks, cyclists, pedestrians, buses, delivery vans, crossings, variable traffic controls and the like, but I'm usually shouted down and told that "smarter software" will deal with all that stuff. Somehow I doubt it.

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    Just cruising through this digital world at 33 1/3 rpm...
  10. Re:Before anyone bangs on about bedallions and so by KGIII · · Score: 2

    You know what pisses me off? Half these Uber-defending-jackasses self-identify as Libertarians. It's because of this that I can understand the confusion on the part of sane people everywhere. I'm truly at a loss and really do think it's time to start with the new moniker. People, people are the damned problem. Give them something good and they'll shit on it, set it on fire, or otherwise ruin it. I guess I can live with that. It's when they complain and throw a temper tantrum afterwards, blame others for their behavior, and insist they be given a new toy because they still believe they're correct and unaccountable.

    It's not even an age or generation thing. It's just people. I hate people. I'm glad I'm not one of them.

    --
    "So long and thanks for all the fish."
  11. Terrible headline by goombah99 · · Score: 3, Insightful

    Legacy? come on. how about License regulated taxi drivers lawyer up against illegal gypsy cabs.

    --
    Some drink at the fountain of knowledge. Others just gargle.
  12. Uber is not a 'ride sharing company' by A+Pressbutton · · Score: 2

    ... it is a minicab company.

    If Uber was a ride sharing company then the sharer would share - which means not charge at all, or at most charge for half the petrol used.

    As soon as you charge more than that you are not sharing anymore, you are a taxi (do the knowledge in London) or a minicab (stick to the regs) or illegal.

    I can see no problem with most of the regs - you want to know the driver can drive, has not been disqualified, passes basic pnc checks (not a wanted criminal), the car is safe and has proper insurance and you wont get ripped off on the fare.

    Uber's reasonable complaint imo is that the TFL is under pressure to set a minimum 5m wait time.

  13. Re:Government monopolies are not fair competition by mjwx · · Score: 4, Insightful

    Untill plane with 300 people crashes into ocean like Malasian one did, then everybody screams "regulation!"

    This is pretty much how we ended up with taxi regulations.

    With unregulated taxi services you quickly reach the problem of oversupply. There are only really two ways of dealing with oversupply, 1) regulation or; 2) violence. Having lived in both a well regulated developed, western city (in Australia) and a developing, unregulated city (in both Thailand and the Philippines) I can say that regulation with all its prices and pitfalls are better than armed taxi gangs enforcing their turf.

    Western nations experienced the problems with taxi gangs many generations ago, this is why we have regulations and people who've never lived in place like Phuket have no idea how bad it gets. Thailand manages to do public transportation very well, from the highly organised system of Bangkok to the ad-hoc Baht buses prevalent in smaller cities and towns, however in Phuket there is practically no public transport because whenever the government attempts to set up any municipal buses. the taxi gangs (AKA tuk tuk mafia) stop them, pull them over and beats the shit out of the drivers (if they're lucky, it ends at a beating). This is the kind of system that exists without regulation.

    Having experienced both, I'd definitely prefer an over-regulated system to a non-regulated system.

    Uber however is a self correcting issue. In a place like Australia all we have to do is wait for them to have an accident. Regulations protect taxi companies from being bankrupted by insurance claims by limiting their liabilities, the government will extend no such courtesy to Uber as they have chosen to ignore regulations. So as soon as they have 1 serious accident in a place like Australia, England or Germany the insurance companies will tear Uber to shreds. Their war chest might be enough to survive one such encounter, but two will kill them.

    --
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