Uber Employment Tribunal A Win For Taxis

Posted on November 16, 2016 by


Uber Employment Tribunal A Win For Taxis


Uber has lost an employment tribunal resulting in the company classifying drivers as staff rather than self-employed. This means Uber legally have to pay drivers the national minimum wage as well as offer them benefits such as holiday pay, sick pay and rest breaks. So is this good or bad news for taxis? Are Uber predicted to continue dominating the industry?

Firstly, it is now a legal requirement for all black cabs in London to take card payments; if a success it is expected to integrate to taxis nationwide. Card payments are replacing cash for pretty much most things, especially now as contactless pay makes transactions effortless. Black cabs taking card payments increases the consumer market which they are targeting as it means they are accompanying for those who prefer to pay in card, as well as card. However, Uber are also in the process of trialling cash payments for their services; again widening the type of consumers who will pay for their service.

But, the main reason why most people use Uber is because of the low fares. Ubers low fares are a result of the company not having to pay for employees due to the company branding its drivers as self-employed. However as the employment tribunal has now ruled Uber must classify its drivers as employees, the company will have to pay out employee expenses, a large sum to the company affecting business models and profits. It is estimated that Uber will cover the cost of these expenses by increasing the fares to its customers, making taxi prices just as competitive as Ubers.

It seems that Uber may no longer be a niche taxi firm, as technology grows old traditions keep up and prioritising making profits over fair treatment of workers could have lead Uber to its downfall and risen the traditional taxi firms back to success.

If you are an Uber driver or taxi driver and require insurance then contact Insure 24-7 for a competitive, cost effective quote today.