UBER Q&A: General Manager Jamie Heywood talks VAT, Workers’ Rights, Autocab and more
If there’s ever an operator in the world that doesn’t need an introduction, it’s this one... Uber. Joining us to answer the BIG questions currently circulating in the taxi and private hire industry is Uber’s Regional General Manager for Northern and Eastern Europe, Jamie Heywood.
Will Uber customers see a difference in the service as a result of the Supreme Court judgment? Do you foresee the price of a journey increasing and/or the number of vehicles available decreasing?
We are committed to keeping prices competitive for riders in the UK. The changes we are making are good for drivers, which we believe is good for our business, particularly as we head into the recovery where we expect demand to increase significantly. It is my strong view that apps like Uber will help power the collective recovery, and these changes will improve the way drivers earn with Uber.
With the change to drivers' worker status, are Uber now likely to be liable for VAT in the UK?
The Supreme Court judgment concerns the status of drivers in the context of UK employment law and was not concerned with VAT, which is an entirely different regime. In December 2020, the Treasury launched a call on evidence on VAT and the sharing economy. As one of many stakeholders, we welcomed the opportunity to respond and review how VAT works in the modern economy. We, like many others, are awaiting the Government’s response.
Why have drivers on the Uber platform only been offered workers’ benefits for the time they have an active job, rather than the time they are logged in looking for work on Uber as well?
If drivers were entitled to the minimum wage for all the time they simply had the app open, this would mean set shifts and a drastic cut to the number of drivers who can earn with Uber, at a time when the UK needs more earnings opportunities not less. Drivers have told us this is not what they want and the changes announced recently are the only way to ensure these new rights come with flexibility. This is consistent with the Supreme Court ruling which assessed Uber’s business in 2016 and based its decision on key features which have subsequently been removed.
The Supreme Court has raised debate over who takes the customer booking first. Can you explain whether it’s Uber or the driver?
Uber London Limited accepts the booking as the registered private hire operator for London, in compliance with the regulatory regime. This remains unchanged.
Do you think other ride-sharing apps in the UK should follow Uber’s stance by providing drivers with basic workers’ rights?
Uber is just one part of a larger private-hire industry, so we hope that all other operators will join us in improving the quality of work. Many drivers work with several private-hire operators at the same time and unless other operators make these changes then drivers could enjoy the protections of worker status on one trip with Uber, but lose them on the next. That doesn’t seem to make sense.
If the acquisition of Autocab completes, what can customers on your platform expect?
I am delighted that the CMA has approved our acquisition of Autocab. Every month thousands of people open the Uber app in places the company doesn’t operate to try to get a trip. Through Autocab’s iGo marketplace, Uber will be able to connect these riders with local operators who choose to take their booking. In turn, operators should be able to expand their operations and offer more earnings opportunities to local drivers. Autocab has worked successfully with taxi and private hire operators around the world for more than thirty years and Uber has a lot to learn from their experience.
Does Uber support the growing network of Low-Traffic Neighbourhoods (LTNs)?
We are supportive of measures to reduce congestion and emissions in our cities, especially given the importance of ensuring a green recovery.
Does Uber have any input into transport policy at a Government level? If so, what input do you have?
Like many stakeholders, Uber responds to public consultations where relevant to share our experience and expertise to help inform policy development. For example, we, like other operators, have inputted into the Department of Transport's Future of Transport regulatory review recently.
