London cabbies drop Uber legal challenge due to fundraising failure
A London taxi drivers group called Action for Cabbies has been forced to withdraw its attempted legal challenge against Uber, after it failed to raise sufficient funds for a judicial review into TfL’s decision to grant Uber an operating licence in the capital. The group launched a crowdfund campaign last year with the hope of raising £600k to challenge the licence in court, however so far has raised just over £350k. The new plan will be for the funds to pay for a judicial review of TfL’s plan to install credit card readers in every black cab instead, unless original contributors opt to reverse their donations due to the change in aim of the crowdfund campaign. 

T axi drivers hoping to declare Uber’s licence in London illegal have been dealt a blow after failing to raise enough cash to launch the first phase of legal action.

Action for Cabbies, a crowdfunded drive set up to seek a judicial review into Transport for London’s decision to award a minicab licence to the American company in 2012, admitted it had failed to reach its initial target of £600,000 to challenge the licence in the courts.

However, the group said it was now planning to use the money it has raised so far, more than £350,000, to prevent TfL’s plans to have a contactless credit card reader installed in every cab, which it said could cost cabbies “tens of millions”.

A statement on the group’s website reads: “It is now clear that we will not reach our initial crowdfunding target of £600,000 by April 7.

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“However, following consultation with those who have made pledges to date, our lawyers, and taxi organisations, the decision has been taken to direct the tremendous support we have received into an alternative legal action against TfL.

“To date, we have managed to raise a fantastic £351,208 from 4,764 backers. £300,000 would be sufficient for us to seek a judicial review of TfL’s decision to implement restrictive practices surrounding the credit card mandate.

“TfL’s [prescriptive mandate] would require black cabbies to install a fixed unit in the passenger compartment and would prevent them passing on the legitimate card processing fees to passengers – the unrecoverable cost to black cabbies could be tens of millions.”

Last month, TfL announced every London taxi will be required to accept card payments for their fares by October.

The move was approved after 86 per cent of respondents backed the plans following a consultation and was said by Mayor Boris Johnson to make journeys “swifter and simpler” than ever before.

Garrett Emmerson, TfL's Chief Operating Officer for Surface Transport, said: “We believe the acceptance of card and contactless payments will be a huge plus for both taxi drivers and their passengers.

“Card payments are part of everyday life in London, and people use them in every aspect of their lives.”

An Uber spokesman declined to comment.