Business bosses hit out at London mayor's anti-Uber plans


The UK's leading organisation for business leaders urges Transport for London to ignore the "Luddite tendency" over taxi controls

British business leaders have heavily criticised Transport for London’s proposed crackdown on minicab services like Uber, saying it could “damage competition” and hurt consumers.

Calling on Transport for London to drop its proposed regulations for private hire vehicles , the Institute of Directors describes the new rules as “unfriendly to entrepreneurialism, innovation and fair competition”.

"Throughout its history, London has been at its most successful when it is open to innovation and to enterprise,” said Andy Silvester, Head (Other OTC: HEDYY - news) of Campaigns at the IoD.

“How the capital responds to the application of new technology is not just a litmus test of how forward-thinking its politicians are, but will set the precedent for other cities and other innovations, and the Luddite tendency evident in the proposals as they stand is deeply concerning.”

The proposals put forward by TfL in September include a compulsory five-minute wait time after ordering a car, the ability to book a ride a week in advance, and set fares before the journey.

The mooted rules also suggest banning operators from showing cars for hire within a smartphone app a hallmark of the American company's service.

The IoD dismissed the compulsory five-minute waiting times as “absolute nonsense”. TfL claims the measure is designed to stop people getting in the wrong taxi, but the IoD said they had not proved this was a frequent occurrence.

The IoD also argued that obliging firms to set the fare in advance would increase cost for consumers, as taxi firms would have to price in potential delays, rather than just charging for the actual journey distance and time.

Last week, the UK's competition watchdog also opposed the proposals , saying they would "impose regulation that excessively and unnecessarily weakens competition."

Mr Silvester said, “TfL and the Mayor must appreciate the gravity of the situation, and choose competition over protectionism. This is also an opportunity for the candidates in next year’s mayoral contest to show that they stand on the side of consumers against the powerful lobbies of entrenched industries.”

https://uk.finance.yahoo.com/news/business-bosses-hit-london-mayors-000124381.html