The case was brought by nearly 11,000 black cab drivers in London. Each driver involved could receive £25,000 if the court rules in their favor. Earlier this year, Uber settled a lawsuit in Australia for a whopping A$271.8 million in compensation.
Uber, the San Francisco-based ride-hailing giant, faces another major legal challenge in London, this time facing a lawsuit that could cost the company upwards of £250 million.
The case has been brought by nearly 11,000 black cab drivers in London who claim Uber misled Transport for London (TfL) into securing its operating license, a move they claim unlawfully undermines their business.
The dispute centers around allegations that Uber’s operations from May 2012 to March 2018 included deceptive practices to misrepresent how its application worked to the city’s transport authority, TfL.
The claimants, represented by litigation management firm RGL Management, argue that Uber’s strategy was aimed squarely at capturing market share from the traditional black cab industry.
Each driver involved could receive £25,000 if the court rules in their favor. Uber has vehemently denied these accusations, stressing that its operations are legal and fully licensed by TfL. The company, known for its innovative business model, confirms its commitment to serving passengers and drivers alike in London.
In contrast, TfL has yet to comment on the new allegations while it reviews them publicly. Uber’s journey in London has been fraught with regulatory and legal hurdles. 2017 Transport for London initially refused to renew Uber’s license, citing a lack of corporate responsibility with implications for public safety and security.
Uber CEO Dara Khosrowshahi responded by apologizing for past mistakes and signaling the company’s intention to challenge TfL’s decision. Despite being rejected again two years later, Uber successfully appealed and was granted a two-and-a-half-year license in 2022, which is currently set to expire at the end of September.
This is not the first time Uber has faced legal opposition. Earlier in the year, Uber settled a lawsuit in Australia for a whopping AU$271.8 million, resolving claims from more than 8,000 taxi drivers, for-hire car operators, and drivers who claimed loss of income due to Uber’s aggressive market entry tactics.
Furthermore, in December 2023, Uber scored a legal victory in France when a Paris commercial court ruled that the company did not compete unfairly against 2,500 taxi drivers. Thousands of black taxi drivers in London filed a lawsuit against Uber Technologies, demanding hundreds of millions of pounds and accusing it of operating illegally in the British capital.
RGL Management, managing the lawsuit, said it accuses Uber of improperly obtaining a license to operate in the city and making illegal profits for at least six years beginning in 2012. The operating system did not comply. Uber complies with UK car rental requirements.
