Uber (NYSE:UBER), the San Francisco-based ride-hailing giant, is embroiled in yet another significant legal challenge in London, this time facing a lawsuit that could cost the company upwards of £250 million.
This case is brought forward by nearly 11,000 London black cab drivers who claim that Uber misled Transport for London (TfL) to secure its operating license, a move they allege unlawfully undercut their business.
What’s the dispute?
The dispute centers on the allegations that Uber’s operations from May 2012 to March 2018 involved deceptive practices to misrepresent how its app functioned to TfL, the city’s transport regulator.
The claimants, represented by litigation management firm RGL Management, argue that Uber’s strategy was directly aimed at capturing market share from the traditional black cab industry.
Each participating driver could potentially receive £25,000 if the court rules in their favor.
Response from Uber and TfL
Uber has vehemently denied these accusations, maintaining that their operations are lawful and fully licensed by TfL.
The company, known for its disruptive business model, asserts its commitment to serving London’s passengers and drivers alike.
In contrast, TfL has not yet made a public comment regarding the new allegations as they review the claims.
Uber’s legal woes in London are not new
Uber’s journey in London has been fraught with regulatory and legal hurdles.
In 2017, TfL initially refused to renew Uber’s license, citing a lack of corporate responsibility with implications for public safety and security. Uber’s CEO, Dara Khosrowshahi, responded by apologizing for past mistakes and indicating the company’s intention to challenge TfL’s decision.
Despite another denial two years later, Uber successfully appealed and secured a two-and-a-half-year license in 2022, currently set to expire at the end of September.
Global legal precedents
This isn’t the first time Uber has faced legal pushback.
Earlier in the year, Uber settled a lawsuit in Australia with a hefty A$271.8 million, resolving claims by over 8,000 taxi and hire car operators and drivers who alleged loss of income due to Uber’s aggressive market entry tactics.
Furthermore, in December 2023, Uber secured a legal victory in France when a Paris commercial court ruled that the company did not engage in unfair competition against 2,500 taxi drivers.