Uber, that well-known four letter word amongst London's Black Taxi and Private Hire fraternity. A little background to their operation in London. They started in 2012 offering London PHV drivers a better deal than the vast majority of Licensed operators in the capital. Basically, their prices were towards the top-end of the scale but they only charged 20% commission. By comparison, many operators would charge a higher commission (50%+) on lower fares thereby making Uber a very attractive alternative to many drivers who were basically being ripped-off by their operators. It was basically a reeling-in operation.
During the following 18 months, as news of this 'great new deal for drivers' spread amongst the cabbing fraternity the number of drivers swelled as the service expanded. Earnings of £2-3,000 a week were not uncommon and it seemed nothing could stop the inexorable rise of the newcomer. Drivers had to have their own vehicle, late model Prius on the basic service or Mercedes E200 on the executive service. The basic cost of these were £250-£350 a week with insurance if hired.
Many drivers seeing the potential earnings splashed out buying their own or hiring on contracts. However, as with most things that seem to good to be true, it was. Once Uber had recruited to a level that covered the London area they fielded early complaints of their pricing, particularly 'surge pricing' where the price can double, treble or even higher according to demand, by cutting fares by 20%. Drivers having committed to vehicles were now seeing the other side of Uber, massive recruitment had diluted the work available, earnings began to fall as rapidly as they had risen. Uber then raised their commission charge to 25% further cutting earnings and recently on one of their services it will be 30%. It really does now appear to be a race to the bottom.
Customers should also be aware that Uber charge both distance and time, similar to the meter in a Black Taxi, and this is where the major opposition from the LTDA has come. By law, only Black Taxis may operate a 'Taximeter'. Uber argue their electronic app is not a 'Taximeter' and, at present, TfL, in their usual cack-handed fashion, have allowed them to operate. The LTDA then took out private prosecutions against a number of Uber drivers quoting the 'Taximeter' law. They agreed to suspend the prosecutions to enable TfL to seek a Judicial Review of Uber's use of a 'Taximeter' app. This is to be heard later this year. The current Black Taxi protests are mainly linked to problems with Uber who are now launching a publicity drive to try and counter the criticism.
As a driver for Addison Lee, I can see both sides of the argument. The problem with Uber is they have entered a regulated market and driven a coach and horses through the rules every other company have played by. For drivers working for smaller operators, this must have seemed like manna from heaven, for a while. Now many are stuck with expensive vehicles they own or hire on long-term contracts and are seeing their earnings crash and burn in a saturated market. Also, many have discovered that when there is a problem they are on their own. Customers are given full details of their driver but their drivers have very little detail of the customer. One recent incident saw an Uber driver pick up three 'ladies' from an upmarket bar, they were basically rat-arsed. One even put her stiletto-clad feet on the driver's headrest. When he'd had enough of their antics he pulled over and asked them to get out, to cut a long story short he was verbally, racially and physically abused. By time the police arrived they had gone but when the police requested the passenger details from Uber they refused to co-operate stating they would only respond to a court order, that's how much they value their drivers.
For those who use such services price is king and Uber's fare cuts have generated a lot of business but the professionalism of their drivers is questionable. Many are part-timers just trying to earn extra money often with little knowledge of London's roads and reliant on satnavs which are useless in Central London's tightly packed roads. Many take 'scenic' routes to bump up the 'distance and time' prices and many will use underhand methods to initiate surge pricing further ripping off customers. In the end you have to simply judge for yourself, it's the basic premise of 'you get what you pay for'...
During the following 18 months, as news of this 'great new deal for drivers' spread amongst the cabbing fraternity the number of drivers swelled as the service expanded. Earnings of £2-3,000 a week were not uncommon and it seemed nothing could stop the inexorable rise of the newcomer. Drivers had to have their own vehicle, late model Prius on the basic service or Mercedes E200 on the executive service. The basic cost of these were £250-£350 a week with insurance if hired.
Many drivers seeing the potential earnings splashed out buying their own or hiring on contracts. However, as with most things that seem to good to be true, it was. Once Uber had recruited to a level that covered the London area they fielded early complaints of their pricing, particularly 'surge pricing' where the price can double, treble or even higher according to demand, by cutting fares by 20%. Drivers having committed to vehicles were now seeing the other side of Uber, massive recruitment had diluted the work available, earnings began to fall as rapidly as they had risen. Uber then raised their commission charge to 25% further cutting earnings and recently on one of their services it will be 30%. It really does now appear to be a race to the bottom.
Customers should also be aware that Uber charge both distance and time, similar to the meter in a Black Taxi, and this is where the major opposition from the LTDA has come. By law, only Black Taxis may operate a 'Taximeter'. Uber argue their electronic app is not a 'Taximeter' and, at present, TfL, in their usual cack-handed fashion, have allowed them to operate. The LTDA then took out private prosecutions against a number of Uber drivers quoting the 'Taximeter' law. They agreed to suspend the prosecutions to enable TfL to seek a Judicial Review of Uber's use of a 'Taximeter' app. This is to be heard later this year. The current Black Taxi protests are mainly linked to problems with Uber who are now launching a publicity drive to try and counter the criticism.
As a driver for Addison Lee, I can see both sides of the argument. The problem with Uber is they have entered a regulated market and driven a coach and horses through the rules every other company have played by. For drivers working for smaller operators, this must have seemed like manna from heaven, for a while. Now many are stuck with expensive vehicles they own or hire on long-term contracts and are seeing their earnings crash and burn in a saturated market. Also, many have discovered that when there is a problem they are on their own. Customers are given full details of their driver but their drivers have very little detail of the customer. One recent incident saw an Uber driver pick up three 'ladies' from an upmarket bar, they were basically rat-arsed. One even put her stiletto-clad feet on the driver's headrest. When he'd had enough of their antics he pulled over and asked them to get out, to cut a long story short he was verbally, racially and physically abused. By time the police arrived they had gone but when the police requested the passenger details from Uber they refused to co-operate stating they would only respond to a court order, that's how much they value their drivers.
For those who use such services price is king and Uber's fare cuts have generated a lot of business but the professionalism of their drivers is questionable. Many are part-timers just trying to earn extra money often with little knowledge of London's roads and reliant on satnavs which are useless in Central London's tightly packed roads. Many take 'scenic' routes to bump up the 'distance and time' prices and many will use underhand methods to initiate surge pricing further ripping off customers. In the end you have to simply judge for yourself, it's the basic premise of 'you get what you pay for'...
