The battle for Uber in London became even more heated this morning as a well-respected business body slammed Transport for London’s (TfL) proposed clampdown on app-based taxi companies.
The Institute of Directors (IoD) described the changes as:
“Unfriendly to entrepreneurialism, innovation and fair competition”.
Making your ride home slower and less convenient
TfL’s proposed changes will ban apps including Uber, from showing passengers nearby cars and controversially force them to wait for five minutes before getting into the car, which the IoD dismissed today as “absolute nonsense”.
London’s policymakers have been locked in a tug of war between traditional black cab drivers and private hire challenger brands including Uber and Kaabee, which have rapidly taken a slice of the market.
Read more: 6 Uber Challengers and the real reason why none will succeed
Black cab drivers have furiously protested against the ways in which Uber operates in London and will likely welcome the proposed changes, which they say will bring an end to Uber’s ‘unfair competitive advantage’.
Uber has also come under fire from it’s own drivers, as we exclusively revealed earlier this year, some claim they have been threatened with sanctions for engaging with a union.
Read more: 10 of the biggest complaints about Uber – from Uber drivers
Restricting drivers from work
One proposal has the potential to seriously harm the incomes of many private hire drivers who work for more than one operator to help make ends meet. TfL has suggested limiting drivers to one app at any time, a move which the IoD slammed as “backward”.
“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” says Andy Silvester, Head of Campaigns at the IoD.
Read more: Ex-Barclays boss: This is the “Uber moment” for banks
The IoD’s position is pro-business and pro-competition. The group endorsed some of the proposals including making it easier for black cab drivers to compete by setting their own fares, instead of the tariff dictated by TfL.
The proposals are under consultation until Christmas. If successful, this could mean revellers left out in the cold next year as they unnecessarily wait 5 minutes before taking their ride home.
Read more about Uber:
Despite $470m in losses, Uber remains the most valuable private tech firm in the world
10 of the biggest complaints about Uber – from Uber drivers
No surge: drivers snub first Uber protest
Ex-Barclays boss: This is the “Uber moment” for banks
The problem with Uber: Black cab drivers speak out
Uber faces lawsuit as the sharing economy buckles
The post Business leaders slam TfL’s ‘luddite’ clampdown on Uber appeared first on The Memo.