Soon after last summer’s U.K. vote to leave the European Union, London Mayor Sadiq Khan launched a publicity campaign to reassure investors that his city would remain a dynamic, global hub after Brexit. “London Is Open” was the slogan, and it was supposed to “show the world that London remains entrepreneurial, international and full of creativity and possibility.”
So much for that. Friday’s decision by the city’s transport regulator not to renew Uber’s license suggests that Khan’s London is closed to competition and in thrall to local special interests.
The regulator, Transport for London, said the decision was based on Uber’s alleged lack of corporate responsibility in a variety of areas, particularly public safety. Yet there is no Uber-driven safety crisis in London. If Uber has made missteps, as any company might, putting 40,000 drivers out of work and inconveniencing 3.5 million London riders is a terrible way to respond.
Public safety is a pretext. The Uber ban comes after years of lobbying–and strikes and bullying–by the city’s black-taxi cartel. Before Uber came along, the industry’s high barriers to entry shielded black taxis from competition. It takes tens of thousands of pounds to buy a black cab and years to acquire “the knowledge”–drivers’ vaunted ability to memorize and instantly recall the best way to any destination.
The advent of GPS and ride-sharing meant that having the knowledge wasn’t all that special. Rather than try to outcompete Uber by offering better prices and service, the black taxis continued to charge outrageously overpriced fares. And they sought to defeat ride-sharing politically. Now they have succeeded. The losers are riders who used ride-sharing for fast, reliable, and accountable service.
The first black taxi I ever took, in 2014, took me from Heathrow Airport to Euston, in central London. It cost nearly £100 (or $170 at the time). That taught me early on to rely on my Uber app, and since then I have taken hundreds of rides. Defenders of the ban point to pre-booked minicab services and the like that often cost less or about the same as Uber. Yet none of those services offer the speed, ease, and pickup accuracy that Uber does. Black taxis don’t routinely serve many low-income neighborhoods, moreover, whereas Uber works wherever people have smartphones.
If you leave a personal item in a black cab and pay cash, there is no way to recover it. With Uber and similar apps, you can immediately track down your driver, and he will usually return the item to you within hours. As for safety and sexual assault: Rachel Cunliffe pointed out in the Spectator that Uber is the far safer option for female riders, who don’t have to trawl the streets looking for taxis. Every ride and every driver is tracked.
The Uber ban is the triumph of protectionism over innovation and clientelism over consumer choice. London is not open.