Transport for London’s proposed five-minute rule for Uber and other taxi apps will cost drivers £19m a year
Drivers of Uber cabs could stand to lose as much as £19m a year if new proposals by Transport for London (TfL) forcing operators of taxi apps to make their passengers wait five minutes before a pick-up come into effect.
Research published by Uber today found its drivers will be out of pocket by an average of £1,000 each.
According to the company, more than 43 per cent of trips in the capital last month began within five minutes of the car being summoned.
Read more: Why TfL is proposing new rules for Uber
The average trip was 22 minutes and cost £14, it added.
"If partner drivers had been forced to wait a full five minutes before starting these trips they would have wasted more than 52,000 hours a month of sitting and waiting instead of making money driving on trips."
At the end of September, TfL outlined a range of proposals aimed at limiting the functionality of apps such as Uber.
Read more: Uber crackdown could damage Britain's brand
Among the proposed new rules were the five-minute rule, a ban on ride-sharing, banning apps showing the position of cars available for hire nearby and forcing apps to allow cars to be pre-booked up to seven days in advance.
Today Jo Bertram, Uber's regional general manager, said the rules would be a "huge mistake".
“We agree with any measures that improve the way people can get about the city and public safety, but this proposal does neither. These plans would take money away from hard working partner-drivers and also create a safety issue with people banned from getting into their car, even after it’s booked and waiting right there.
“And they would add to congestion as cars will be forced to hang around, clogging up streets before being able to start trips. Let’s keep London moving, not slow it down."
But Garrett Emmerson, TfL’s chief operating officer for surface transport, said: “This is a public consultation to inform and improve the regulations around the Capital’s private hire trade. Technology has developed rapidly, but it has also triggered an exponential growth in the number of private hire vehicles on our roads – there are now over 90,000 drivers today compared to around 59,000 in 2009/10.
"This new technology is clearly very beneficial for customers, but it has also given rise to a number of wider issues. These include rising traffic congestion, illegal parking and an impact on air quality. No final decisions have been made and the consultation runs until 23 December. We’re keen to hear a range of views from the trade and from Londoners."
Steve McNamara, general secretary of the Licensed Taxi Drivers Association, added:
“We support TfL's ambition to improve the quality, safety and accessibility of Private Hire Vehicle provision in London. We will be responding to the consultation in due course, instead of making spurious claims on what one of the 25 proposed regulations might mean.
"If Uber is genuinely concerned about the welfare of its drivers, we suggest it concentrate on implementing fair terms and conditions for its drivers and start making a meaningful contribution to the Treasury. Estimates suggest just five taxi drivers contribute more than Uber’s entire UK corporation tax bill.”