An historic legal battle has raged on since early 2022 over the price of taxi fares outside London and it’s about to come to a head.

The UK’s private hire vehicle and taxi industry is locked in a David vs Goliath battle with Uber – and we need your support. 

A landmark legal case could see private hire vehicle fares outside London rise by 20% if Uber Britannia Limited succeeds in its Supreme Court challenge, making rides more expensive for passengers, reducing the number of licensed drivers, and threatening small and medium operators’ survival.  At our latest appearance in court, Delta Taxis and Veezu, championing the interests of the Private Hire Vehicle sector and all those who depend on it, were able to successfully defend our position against Uber and overturn a far-reaching High Court ruling in their favour. But in the latest twist to this saga, Uber is set to appeal in the highest court in the land, the Supreme Court.

If we lose, it will have a huge knock-on effect for the rest of the industry – and mean every customer using private hire vehicle services outside of London would have to pay VAT on each fare, adding at least 20% to the total cost of their journeys.

What’s at Stake?

• Fares up by at least 20% overnight – Operators will be forced to charge VAT, pushing fares higher.
• A blow to vulnerable passengers – Many rely on PHVs as their only affordable transport, especially in rural areas.
• Smaller firms and community transport services at risk – Uber’s dominance would grow as small operators close, and passengers and drivers will be left with fewer transport choices.
• Driver exodus from the sector – as fares increase, demand will reduce, and drivers will leave the sector.

How You Can Help

Legal battles aren’t cheap, and so far, costs have been shouldered by key industry players. We don’t have the deep pockets of a multi-national company, so we need to work together to win this battle. We’re asking operators, drivers, passengers and anyone impacted by this issue to support our fight to stop Uber’s bid to reshape the industry to its advantage.  We are raising £500,000 to as a fighting fund.  This may be just a drop in the ocean.

Stand with us – let’s stop Uber before it’s too late.

Why should you care about this as a customer?

Private Hire Vehicles are a vital transport service, representing the only transport option for many passengers. If fares are subject to full 20% VAT, then it will become much harder to provide services that are reliable and cost effective, 24 hours a day, seven days per week. Moreover, outside major towns and cities, PHVs are even more critical, serving as a vital lifeline for many households and communities especially in less connected rural areas. With the tax change, rides could become unaffordable for vulnerable low-income passengers. In a cost-of-living crisis, this extra cost will hit passengers hard - especially those who rely on private hire as an essential service.

What about the impact on drivers and operators? 

This case is incredibly important for private hire drivers and operators as it has the potential to reshape legal and financial responsibilities within the industry.

Managing VAT will be a major administrative burden, which many small and medium operators will struggle to implement. This additional cost will drive operators, many of them family run businesses, out of the local communities they have served for decades. As fares increase, demand declines and operators close, drivers will leave the sector. This will lead to further price increases for passengers and Uber will have more control over the market, allowing it to set the rules and charge what it likes.

The background to the case

In July 2024,  Delta and Veezu proudly led the effort that resulted in the Court of Appeal's ruling in the Uber vs Sefton Borough Council Case on behalf of smaller private-hire operators across the UK. This pivotal decision overturned the previous declaration by the High Court the previous year, which had asserted that private hire vehicle operators enter into a direct contract with passengers, making them liable for VAT at 20% for all operators outside London. The case centred around a new interpretation of a licensing statute dating back to 1976, which suggested that all private hire vehicle fares should be subject to VAT at 20%, a move that could have drastically increased private hire fares. Historically, Licensing Authorities, operators, and regulators interpreted these lines without issue for nearly five decades. In July 2023, the High Court ruled that private hire operators must form contracts with passengers. This decision raised concerns about the resulting significant fare increases. Now, Uber has escalated the case to the Supreme Court in a final attempt to impose VAT on all private hire journeys nationwide – so this is once again at stake.

We need your help!

Fighting Uber’s legal challenge is costly, but the stakes are high. We need industry and public support to defend the Court of Appeal ruling and compete with the resources at the disposal of Uber to protect choice in private hire. This is a David vs Goliath battle—help us fund the fight to keep fares fair and this vibrant industry alive.  

Thank you 

Every donation of any size matters to us immensely and we are truly grateful for your support.