Will Uber’s UK Expansion Continue? New cities and licensing shifts in the last 12 months
Uber’s footprint in the United Kingdom has grown markedly over the past year, with the ride-hailing giant pushing into new locations and navigating a patchwork of local licensing regimes. From coastal towns to major cities, Uber’s UK expansion in the last 12 months has been characterised by fresh operating licences and an ongoing debate over cross-border operations.
A Surge into New Locations
In 2024, Uber accelerated its reach into British towns and cities that had long been holdouts. In mid-2024 alone, Uber launched services in Hull, York, and Aberdeen, three significant urban markets that had either resisted or lacked Uber’s presence until now. The York launch marked a notable turnaround: the city had barred Uber for six years, but approved a new licence in June 2024, allowing the app to return under strict conditions. Similarly, Aberdeen City Council gave Uber the green light, making it the third Scottish city (after Edinburgh and Glasgow) to welcome Uber drivers. Company officials cited unmet demand – Aberdeen’s “lack of taxi provision” – as a rationale for entry, positioning Uber as a solution to bolster transport options and safety for passengers. Indeed, 93% of respondents in a local survey said they would welcome Uber’s arrival in Aberdeen, reflecting public appetite in areas where traditional taxis were scarce.
Beyond those headline cities, Uber quietly secured licences in several other regions. Plymouth, for example, approved Uber’s operator application and granted a five-year licence – a first for Devon – indicating a long-term commitment to the area. Uber plans to license up to 160 vehicles per year in Plymouth to meet local demand. Dundee in Scotland also moved forward with approval, and Uber’s first trips went live in Darlington by late 2024. Even Swansea, which previously had no Uber service, is now on the licensed list. In Oxford, where users for years found the app empty, Uber was recently granted a licence to operate. This came after Uber noted that hundreds of thousands of people nationwide were opening the app each month in places like Oxford and Doncaster where they couldn’t actually order a ride. And in Thanet (Kent), the district council confirmed Uber’s licence in 2024, paving the way for the app’s arrival in coastal towns like Margate. Each new licence win underscores Uber’s concerted push into areas that were formerly gaps on its UK map.
Licensing Changes and Local Alliances
These expansions were made possible by navigating local licensing rules – sometimes after years of negotiation. Gaining an operator’s licence from a council is the key to operating legally in any given area, and Uber’s recent spree of approvals represents a shift in local attitudes. City regulators who once balked at Uber’s model are gradually relenting under pressure from rider demand and driver opportunities. In Plymouth, the licensing committee scrutinised whether Uber met “fit and proper” operator criteria under local law before granting approval. The fact that multiple councils – from York to Oxford – have shifted from their initial stances in the past year signals a licensing landscape in flux. Uber’s ability to satisfy authorities’ safety and compliance standards has been crucial to these turnarounds.
Another notable shift was Uber’s use of the “Local Cab” feature, a UK-specific initiative launched in 2021 that allowed users to book trips with local private-hire fleets via the Uber app. This was Uber’s workaround in towns where it lacked licences or drivers: by partnering with established local taxi operators (through the Autocab platform acquired by Uber), the app could offer rides without Uber directly operating there. At its peak, the Local Cab programme brought Uber’s presence to 88 additional towns and districts across the UK – from Plymouth and Oxford to smaller communities – effectively expanding coverage without a formal Uber workforce on the ground. However, this stopgap strategy stirred controversy.
Some local authorities, like Medway Council, questioned the legal basis of Uber facilitating trips in areas where it held no operator licence. Industry critics accused Uber of using Local Cab as a “back-door” to bypass local licensing regulations. In response to these tensions, Uber made a surprising move at the end of 2023: it discontinued the Local Cab service in the UK.
The company gave no detailed public reason for the shutdown, though it confirmed that Autocab’s core dispatch business would continue and even that the Local Cab model might be rolled out in other countries . The withdrawal in Britain likely reflects Uber’s pivot toward securing its own licences and using its own drivers even in smaller markets, rather than relying on third-party cabs.
By the Numbers: Uber’s UK Growth
Uber’s expansion is reflected in robust UK metrics. The company now works with over 100,000 drivers in the UK, providing millions of rides each month. According to an Uber-backed analysis, more than a quarter of British adults had used Uber in the past month (as of late 2023). Cumulative UK trips since launch exceeded one billion by 2023. Rider demand has certainly rebounded strongly after the pandemic: industry data show the number of private hire vehicles in England jumped 10.5% between 2023 and 2024, reaching about 256,600 PHVs on the road. This resurgence has been driven in part by app-based operators like Uber bringing new drivers into the sector.
Looking ahead to 2025, all signs suggest Uber’s UK expansion will continue apace. The past year’s flurry of launches shows no indication of slowing. There are still notable gaps on the map and Uber is likely to target those next. Uber’s own commentary reinforces this momentum: “we are not stopping there,” wrote Brem in 2023, emphasising ambitions like full electrification of the fleet in coming years and deeper integration into UK transport systems. Unless unforeseen regulatory barriers halt its progress, Uber is poised to keep growing its UK footprint into 2025 and beyond – moving into more communities and further entrenching itself as a fixture in Britain’s transportation landscape.
