Cab operators launch £500k fighting fund ahead of Supreme Court battle with Uber

Liverpool taxi firm, Delta Taxis, is preparing for a huge court showdown with US cab giant Uber where it hopes to block a judgement that could see private hire fares rise by at least 20% in England and Wales.

It will be the third time in four years that Delta, in collaboration with Cardiff-based taxi business, Veezu, has gone up against the international ride-hailing app, in a case where Uber Britannia Ltd seeks a declaration from the court which would see VAT added to the cost of all private hire vehicle (PHV) taxi fares outside London.

In July last year the Court of Appeal ruled in favour of Delta and Veezu, but Uber has escalated the case to the Supreme Court, the highest court in the land.

Ahead of the court date, Delta Taxis and Veezu have launched a new ‘Fighting Fund to Protect Passenger Fares’ campaign calling for cross-sector and public support as they mount a defence against Uber in the next phase of this long-running legal battle, expected in July this year.

The proceedings relate to an Act of Parliament that had been in place without issue since 1976, until Uber challenged it 48 years later.

Unlike other modes of transport, which benefit from a zero VAT rating, the PHV industry remains the only form of transport subject to full VAT.

The two firms say that, despite its dominance in towns and cities and its vital role in everyday mobility, it is often overlooked in transport policy. This regulatory change would place the industry at unnecessary risk and disproportionately impact passengers who rely on these services, including the elderly, individuals with restricted mobility, and low-income households, particularly in less connected and rural areas.

The battle also poses a serious risk to the livelihoods of thousands of self-employed drivers, who may see reduced passenger demand and earnings as a result of higher fares.

A fundraising target of £500,000 has been set, with the money being used to help fund the campaign. Costs and legal fees in excess of £1m have already been incurred in this long-running saga, and they are set to rise as the two operators gear up for their third court battle.

Paul McLaughlin, Delta Taxis spokesman, said: “This court case could have massive repercussions for PHV firms like us using the traditional agency model, which has been part of British culture for generations.

“If Uber win, it will add at least 20% to the cost of a private hire taxi fare outside of London and it will unfairly penalise passengers, taxi drivers and every other private hire firm in England and Wales. There are thousands of traditional private hire taxi firms just like us up and down the country, so the impact will be felt far and wide.

“This really is a David vs Goliath moment – in this case we’re representing our entire industry and a Great British institution, as well as the best interests of taxi drivers and passengers. The potential cost of these changes could be devastating for so many people – we simply cannot let Uber win.”

Nia Cooper, chief legal officer at Veezu, said: “This case is about protecting the future of the private hire industry and the millions of passengers who rely on it every day. The private hire industry is integral to the transport network in the UK and provides essential journeys to passengers, particularly those that are vulnerable. It is often the only form of transport accessible to local communities on a consistent and reliable basis.”

Layla Barke Jones, dispute resolution partner at Chester-based law firm, Aaron & Partners, who represented Delta Taxis in the court cases to date and will represent them in the Supreme Court, said: “The Court of Appeal judgement was a victory for the taxi industry and all those who depend on it, but Uber’s decision to make the final appeal means we need to go to the Supreme Court to take up the fight once again.

“There has always been a shared aim to protect passengers, drivers and taxi firms alike throughout this case.

“We believe it is the most vulnerable people in our communities who depend on these taxis that will be hardest hit, such as those with disabilities, low-income households and older people. It’s down to us to stop that happening.

“There’s a lot at stake whichever way you look, but it’s our hope that we can, once again, block this move by Uber and protect the operators, drivers and passengers who rely upon traditional taxi firms.”