The cost of banning Uber in the capital
NEW figures show refusing Uber’s licence could cost Londoners £90million in higher taxi fares.
A ban on the app-based taxi firm could leave Londoners with hugely higher fees, according to data obtained by one London Assembly member.
Uber lodged an appeal against Transport for London’s (TfL) decision not to extend its London licence at Westminster Magistrates’ Court on Friday October 13.
Figures obtained by Conservative LA member Andrew Boff, published on Tuesday, show that if a deal is not reached the financial consequences for passengers and drivers could be huge. His report says:
Excluding surge charges, the cost of an average 6.4-mile journey from Charing Cross to Hammersmith is £15 in a standard Uber, compared with £25 in a black cab.
With one million Uber journeys taken in London per week, and with black cabs making up 17% of all licensed cars, Londoners would pay an extra £89.5million if they used black cabs as alternatives.
The ban would also impact on Uber’s 40,000 drivers, who earn on average £15 an hour and work an average of 30 hours per week.
Across the sector, an upholding of the ban would cost the 40,000 drivers £864million in lost earnings if they are all put out of work.
Mr Boff said: “These numbers may seem dramatic but they underline the huge economic damage this ban would do to millions of Londoners and thousands of drivers in our city.”
Uber’s licence renewal was refused by Transport for London (TfL) in September on the grounds of “public safety and security implications”.
More than 850,000 people have signed an online petition launched by Uber, urging TfL to reverse its ruling.
After Uber lodged its court appeal on Friday, a TfL spokesperson said: “We note that Uber has submitted an appeal. No further comment will be made pending the appeal hearing.”