A union representing private hire drivers has claimed a significant victory in a court case that has clarified the legal status of ride-hailing services and their drivers.
The APP Drivers and Couriers Union (ADCU) said a case brought by Uber, in which it had intervened, had ended 47 years of regulatory misclassification that denied minicab drivers their rights as workers.
Last week Uber secured a High Court ruling that licensed operators in England who accept a booking are required to enter as principal into a contract with the passenger and should therefore pay 20% VAT on their margins.
This followed a 2021 ruling in a case brought by the ADCU against Uber under separate legislation covering London, which forced Uber to contract directly with passengers, helping to confirm drivers as workers with statutory protections and making Uber liable for VAT.
The new case, Uber Britannia Ltd (UBL) v Sefton Metropolitan Borough Council, related to Part II of the Local Government (Miscellaneous Provisions) Act 1976, under which Uber is licensed by 52 authorities, including Sefton. Sixty-nine other private hire operators are similarly licensed by Sefton under the Act.
Uber asked the court to support its interpretation of the legislation and was opposed by Sefton Council and two regional minicab operators, Veezu and Delta.
The ADCU said the judge had upheld its interpretation of the legislation, rather than a narrower one than had been sought by Uber.
In her ruling, Mrs Justice Foster wrote: ‘There is no reason on the wording to limit this to the first sub-contractual situation only, as suggested by UBL: the contract of hire should always be with the operator who has interacted with the hirer/passenger.'
ADCU general secretary James Farrar said: ‘This case has arisen because, despite the clear meaning of the letter and spirit of the law, not a single licensing authority in England has enforced these regulations in the 47 years of the history of this legislation. These regulations are necessary for the safety of the travelling public, to prevent exploitation of workers and to curb tax evasion.
‘We will now redouble our efforts to hold local councils to account for their negligence and to challenge exploitative minicab operators that have blighted the industry for decades.’
Uber said in a statement that the ruling ‘resolves a major inconsistency in the way that rules have been applied for private hire operators across England and Wales,’ adding: ‘Whilst it clarifies many key points, there remain questions on VAT and what passengers should pay.’
Transport Network has approached Sefton Council for comment.
Register now for full access
Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.
Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors.
Use the link below to register your details for full, free access.
Already a registered? Login
