Businesses call on London mayor to rethink onerous Uber rules

Letter to Sadiq Khan warns that regulations could damage capital’s digital economy

Uber has drawn support in its battle against onerous minicab regulations from a list of technology and business chiefs, who have written to London’s mayor warning of the risk to the capital’s £36bn digital economy. 

In a letter to Sadiq Khan, London mayor, 17 British executives, entrepreneurs and business leaders warned that rules being imposed by Transport for London will undermine his post-Brexit London is Open campaign.

Changes coming into force in October require private minicab companies to notify Transport for London of any changes to their operating model in advance, but this could “[tie] them in red tape every time they want to change their app, launch a new product, or update their pricing,” the letter says.

The rules also oblige all London minicab operators to run a call-centre in their licensed London operating unit, which would preclude the use of Uber’s new €4m customer service facility in Limerick. A similar rule does not apply to black taxis, which use online complaint forms.

The rules are described as a “backwards step” that would deter innovation in London and “set a troubling precedent across government”. 

The letter, published in the Financial Times, has been signed by Simon Walker, director-general of the Institute of Directors, Julian David, chief executive of techUK, and Romilly Dennys, executive director of the Coalition for a Digital Economy, which represents start-ups in the UK, as well as several technology chief executives.

A recent survey by government-backed Tech City UK, which promotes the country’s tech sector, showed that almost three-quarters of sector leaders expect business to get worse after the Brexit vote.

“As any entrepreneur can tell you, the ability to experiment and quickly test out ideas is key for success,” the open letter says. “Politicians and regulators should do everything they can to encourage this.”

Garrett Emmerson, chief operating officer for surface transport at TfL, said the “vast majority of the industry is fully supportive of these changes”.

“The mayor’s office is on board. We fully expect there to be an improvement from these new regulations,” he added.

“The customer needs to be able to speak to somebody in a place where booking is taken. Records need to be kept in London, and we should be able to inspect those records. Black cabs are a different type of operation — there is no operator, because they are hailed on the street.”

The letter to Mr Khan comes a week after a public plea was made to London customers by Uber’s city manager Tom Elvidge, who encouraged users to personally email Mr Khan to investigate TfL’s plans.

“If we wanted to add Apple Pay to our app, we have to tell the regulator before we do so, which many agree goes way beyond what’s necessary,” Uber UK said. 

Last year, business leaders also came out in support of Uber and other minicab companies fighting a proposed TfL crackdown, which eventually led to the most damaging proposals being dropped.

Andy Silvester, head of campaigns at the Institute of Directors, said: “In the 21st century, rules which require a call-centre to be in one particular location seem utterly bizarre. Ultimately, regulations should be there to keep up with business trends and with innovation, not attempt to hold back the forces of technological change.”

https://www.ft.com/content/1013cb50-5fa1-11e6-ae3f-77baadeb1c93

Comment.

This is serious, when huge Companies choose to endorse UBERK, we are in trouble.

The link to this story was placed on Twitter by one of Manchester's leading Licensing Barrister's.

Thank you Charles.

http://www.trinitychambers.co.uk/people/barristers/charles-holland/