Liverpool city region private hire taxi firm Delta Taxis joins forces with Cardiff-based Veezu for Supreme Court showdown with global giant Uber – with a possible 20% rise in fares at stake. Tony McDonough reports
Liverpool taxi firm Delta Taxis and Cardiff-based Veezu are set for a Supreme Court showdown with Uber over a judgement that could see private hire fares rise by 20%.
Global player Uber Britannia is seeking a declaration from the court which would see VAT added to the cost of all private hire vehicle (PHV) taxi fares outside of London. Delta and Veezu have launched a campaign calling for cross-sector and public support.
Expected to be heard in July, this case relates to an Act of Parliament that had been in place without issue since 1976, until Uber challenged it 48 years later.
If Delta Taxis and Veezu lose the case, passengers across the country could see the cost of taxi journeys rise to unaffordable levels through the application of VAT at 20%.
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.
Delta and Veezu claim this regulatory change would place the industry at unnecessary risk and disproportionately impact passengers who rely on their services, including the elderly, individuals with restricted mobility, and low-income households.
They add this battle also poses a 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, which are set to rise as they gear up for their third court battle.
Paul McLaughlin, a 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 wins, 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.”
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Layla Barke Jones, dispute resolution partner at the law firm Aaron & Partners, who represents Delta Taxis, 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.”