Uber blamed for slump in cab sales
The supplier of the licensed Mercedes Vito taxi Eco City Vehicles has attributed its slump in revenues to the "uncertainty caused in the London licensed taxi trade by the emergence of Uber".
The company's revenues for the six months to July fell by 33 per cent to £11.4m. However, Mayor of London Boris Johnson's proposed introduction of zero emissions standards from 2018 were also blamed for Vito taxi sales dropping to 139 from 299 at the same time last year, cutting its share of the new London licensed taxi market to 24 per cent.
Eco City warned that additional funding would be required in 2014 while the board reviewed strategic options for the group. The Mayor's proposals involve daily charges on diesel vehicles within a zero or ultra low emission zone.
However, the group emphasised that rental fleet has continued to grow and the rental fleet had been expanded by 30 units since 31 December 2013 to 75 units out on rent as at 30 June 2014. Earlier today, Labour MP Margaret Hodge sent a letter to Johnson criticising Uber's tax arrangements.