Christmas might come early for Uber after a legal challenge against its licence in Aberdeen was withdrawn, opening the door for the company to launch in time for the festive season.
Earlier this year, Aberdeen City Council granted the ride-hailing firm a licence to operate in the city and Uber had expected to be up and running by August. But a legal challenge against that decision put the brakes on the company’s plans, the Press & Journal reported.
Legal challenge
The newspaper understands that a single taxi driver challenged the council’s decision and the appeal aimed to “convince Aberdeen Sheriff’s Court that the council, as licensing authority, had committed an error in approving Uber’s permit.
“This could be because decision-makers misinterpreted the law, made their decision based on ‘incorrect material fact’, had been biased or denied objectors a fair hearing.”
Legal experts told the Press & Journal that the case would have cost the appellant tens of thousands of pounds if it went to court.
But the Aberdeen and Grampian Chamber of Commerce and the BBC have learned that the appeal had been withdrawn, with Uber expecting to be on the road in November.
And, having been granted its licence to operate from August, the Press & Journal said “a number of drivers have already been ‘onboarded’ at the firm’s Aberdeen base at Berry Street” and Uber saw the challenge as no more than a “bump in the road”, although it would not officially comment on the proceedings.
Mixed reception
The Press & Journal reports that the public is largely in favour of allowing Uber into the city. It reports that nearly “500 people officially supported the Silicon Valley company’s expansion into Aberdeen amid troubles sourcing taxis and private hire cars at peak times.
“Meanwhile, Aberdeen and Grampian Chamber of Commerce’s own survey of thousands found more than 90% wanted Uber to be allowed into Aberdeen.”
Adrian Watson, chief executive of business improvement body Aberdeen Inspired, said there was a lack of taxi provision in the city and told the BBC Uber would be a “step forward” in tackling the resulting challenges.
But Uber’s licence in the city has not been welcomed by the taxi trade, with drivers claiming that the firm’s surge pricing would “recklessly inflate [fares] well over 50%” at busy times, and said that the city welcoming Uber was a “stab in the back”.
The newspaper has also uncovered what it calls blacklisting threats – made through a council-endorsed trade lobbying group – for drivers who left major Aberdeen taxi firms to work with Uber instead.
Extra drivers
Welcoming news that the initial licence had been granted to operate in Aberdeen, the BBC reports that Matthew Freckelton, head of cities for UK Uber, told the licensing committee it would look to get drivers from the existing supply of Aberdeen licensed drivers.
“And we will look to increase the supply of drivers, by encouraging new applicants,” he added.
Uber said afterwards: “This decision will help boost earning opportunities for drivers, provide passengers with greater transport options across the city and support the local economy.
“All drivers will have access to industry leading worker rights such as holiday pay and a pension, as well as formal representation through the GMB union.”