The method that the taxi-hailing app Uber uses to calculate its fares in London does not break the law, a high court judge has ruled.
In a decisive written judgment in favour of the Californian-based company, Mr Justice Ouseley said that the app used for Uber taxis cannot be legally classified as a taximeter, which is allowed in London’s black cabs only.
The app, which has about a million registered customers in London, uses GPS technology to calculate the distance travelled and the time taken, and automatically takes the fare from a customer’s bank account. Black cab drivers have said this is the same as taxi metering and is therefore illegal.
They have also argued that the app poses a risk to public safety as well as customers being overcharged, with no opportunity to challenge fares before the money is automatically taken from their accounts.
Transport for London (TfL) had brought the case to the courts after pressure from black-cab drivers, seeking clarification on whether Uber was breaking the law. Though it believed the service not to be illegal, Tfl said there was “significant public interest” in getting a definitive ruling from the high court.
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In making his ruling, Mr Justice Ouseley said: “The driver’s smartphone with the driver’s app is not a device for calculating fares by itself and … even if it were, the vehicle is not equipped with it,” he said.
Uber called the ruling a victory for commonsense and criticised new proposals launched by TfL to curb the growing business.
“Let’s hope today’s high court decision in favour of new technology leads to TfL shelving their nonsensical new rules,” it said.
The San Francisco-based company records a car’s location and the journey time via smartphone and feeds the information to servers in California, and the fare is calculated and relayed back to driver and passenger.
Uber has experienced rapid growth in London, with 18,000 drivers now registered in the capital. This has led to protests from black-cab drivers who say that Uber’s fare calculation undercuts black-cab operators who must follow a metering tariff set by TfL.
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A Uber spokesman added: “This was not a marginal call; it is quite emphatic. In fact, it is contemptuous of the case brought before it. Uber will continue going about our business and making sure customers have choice.”
TfL said the number of minicabs in London has risen from some 59,000 in 2009-10 to more than 89,000. At the current rate of growth, the number could rise to 128,000 over the next two years.
Leon Daniels, TfL’s managing director of surface transport, said: “Disruptive technology and new business models have radically changed the way that taxi and private hire services operate and widened customer choice.
“This is welcome. At the same time, as the regulator, we must ensure that regulatory requirements are met and are developed in a way that delivers the high standards customers deserve.”
The judge said that parties to the case, including the Licensed Taxi Drivers Association and the Licensed Private Hire Car Association, could appeal against the declaration in writing.
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It is not just London where Uber has been facing court battles. In France two Uber executives are facing criminal charges for organising taxi services through UberPop, a service the company provides that allows for unregistered drivers.