The cost of all taxi journeys outside of London could rise by at least 20% if Uber wins its Supreme Court Appeal case slated for July 2025.

UK-founded private hire vehicle (PHV) firms Delta Taxis and Veezu are going head-to-head with the Silicon Valley giant to protect the interests of passengers, drivers and the sector.

Delta Taxis, supported by Veezu, has launched a £500,000 fighting fund campaign to support the industry’s legal battle against Uber, with costs already exceeding £1 million after High Court cases in 2022 and 2023, and a Court of Appeal case in 2024.

Liverpool taxi firm Delta Taxis and Cardiff-based Veezu are preparing for a huge court showdown with Uber where they hope to block a judgement that could see private hire fares rise by at least 20% in England and Wales.

It will be the third time in four years that Delta has gone up against the international ride-hailing app, in a case where Uber Britannia Ltd seeks a declaration from the court which would see VAT added to the cost of all private hire vehicle (PHV) fares outside of London.

Ahead of the court date, Delta Taxis and Veezu have launched a new ‘Fighting Fund to Protect Passenger Fares’ campaign calling for cross-sector and public support as they mount a defence against Uber in the next phase of this long-running legal battle, expected in July 2025.

The proceedings relate to an Act of Parliament that had been in place without issue since 1976, until Uber challenged it 48 years later. If Delta Taxis and Veezu lose the case, passengers across the country could see the cost of journeys rise to unaffordable levels through the application of VAT at 20%.

Unlike other modes of transport, which benefit from a zero VAT rating, the PHV industry remains the only form of transport subject to full VAT.

Despite its dominance in towns and cities and its vital role in everyday mobility, it is often overlooked in transport policy. This regulatory change would place the industry at unnecessary risk and disproportionately impact passengers who rely on these services, including the elderly, individuals with restricted mobility, and low-income households, particularly in less connected and rural areas.

In many communities, PHVs are the only safe and reliable 24/7 transport mode. Data from Veezu shows that 43% of trips cater to healthcare, work, or educational needs, rather than for leisure. A fare increase of at least 20% has the potential to leave some of Britain’s most vulnerable people without a reliable way to access appointments, jobs, and basic services.

The battle also poses a serious risk to the livelihoods of thousands of self-employed drivers, who may see reduced passenger demand and earnings as a result of higher fares.

In the UK many small PHV operators could be forced out of business and an estimated 25,000 self-employed drivers would have to look elsewhere to earn a living. Consequently, passengers may find themselves dealing with significant driver shortages in all areas and no service provision in other areas.

Paul McLaughlin, a Delta Taxis spokesman, said: "This court case could have massive repercussions for PHV firms like us using the traditional agency model, which has been part of British culture for generations. If Uber win, it will add at least 20% to the cost of a private hire fare outside of London and it will unfairly penalise passengers, private hire drivers and every other private hire firm in England and Wales. There are thousands of traditional private hire firms just like us up and down the country, so the impact will be felt far and wide.

"This really is a David vs Goliath moment – in this case we’re representing our entire industry and a Great British institution, as well as the best interests of taxi drivers and passengers. The potential cost of these changes could be devastating for so many people – we simply cannot let Uber win."

Nia Cooper, Chief Legal Officer at Veezu, said: “This case is about protecting the future of the private hire industry and the millions of passengers who rely on it every day. The private hire industry is integral to the transport network in UK and provides essential journeys to passengers, particularly those that are vulnerable. It is often the only form of transport accessible to local communities on a consistent and reliable basis.”

“The ruling sought by Uber would impose a VAT burden on the rest of the industry that would create unfair competition across the sector and disregards the long-established structure of private hire firms. If upheld, vulnerable passengers, drivers, and established British PHV businesses will be caught in the crossfire of Uber’s commercial ambition. That is why we are taking a stand to preserve choice, affordability, and the independence of private hire operations across the country.”

Layla Barke Jones, Dispute Resolution Partner at the law firm Aaron & Partners, who represented Delta Taxis in the court cases to date and will represent them in the Supreme Court, said: "The Court of Appeal judgement was a victory for the taxi industry and all those who depend on it, but Uber's decision to make the final appeal means we need to go to the Supreme Court to take up the fight once again. There has always been a shared aim to protect passengers, drivers and private hire firms alike throughout this case.

“We believe it is the most vulnerable people in our communities who depend on private hire vehicles that will be hardest hit, such as those with disabilities, low-income households and older people. It’s down to us to stop that happening.

“There’s a lot at stake whichever way you look, but it’s our hope that we can once again block this move by Uber and protect the operators, drivers and passengers who rely upon traditional taxi firms.”

Say NO to VAT on private hire fares!

Join the fight - Click the link: https://www.crowdjustice.com/case/protectfares/

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