Why do London cab drivers hate the Uber app?

Taxi drivers take part in strike to protest Uber app

London cabbies strike

In London yesterday afternoon, Wednesday 11th June, taxi drivers across the capital took part in a strike in protest of a new smart phone app called Uber, which they claim is acting as an unfair competitor.

Uber is a simple app that allows users to find nearby drivers using GPS without using a booking office or hailing a cab in the road.

After launching in California, Uber has become increasingly popular in the U.S. and has now spread to Europe, where it has caused widespread distress among the taxi driver community. Strikes have occurred in Berlin, Paris, Milan, Rome, Madrid and now London, as drivers disapprove of the low fares Uber offers as a result of not paying equivalent taxes.

There are three main reasons for the taxi driver’s hatred towards Uber, these are:

Taxi drivers believe that Uber channels its payments through headquarters in the Netherlands to minimise its corporation tax payments in France, the UK and Germany.
Uber bases its fare charges on distance and time travelled, mimicking the meter which under current regulations, only black cabs are allowed to use.
Black cab drivers must undergo criminal checks and medicals, be wheelchair accessible, and pass the Knowledge test, whereas Uber drivers simply need a minicab licence and commercial insurance.

All of these concerns mean that black cab drivers consider the Uber app to be an unfair competitor, and Transport for London has now referred the matter to the High Court as a result.

However, the Europe-wide strikes have only boosted Uber’s popularity, with a spokesperson for Uber claiming that the disruption boosted users by 850%. Uber, which was launched in 2010 by two U.S. technology entrepreneurs, Travis Kalanick and Garrett Camp, has grown rapidly over the past few years. The company was valued at $18bn (£11bn) last week, and operates in more than 100 cities across 37 countries.