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D Issue 266 February 2019 More trade stories than all the others put together INSIDE NEWS PAGE 7 NEWS CABBIE WINS RUM AWARD! PAGES 4 & 5 STREET CLOSURE PROTESTS PAGE 15 REPORT IGNORES TRADE’S CONCERNS OVER PHV NUMBERS AND APPs PAGE 3 LORD WINSTON: BIKE LANES ADD TO POLLUTION STITCH UP!

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Page 1: D STITCHUP! INSIDE · Lastyear,TfLlicensedover 46,000dieselPHVs,ofwhich 8367werenewvehicles. Belowyoucanseeachartthat indicatesvariousmodesof transportandtheirpollution percentage

D

Issue 266 February 2019More trade stories than all the others put together

INSIDE

NEWSPAGE 7

NEWS

CABBIE WINSRUM AWARD!

PAGES 4 & 5

STREET CLOSUREPROTESTS

PAGE 15

REPORTIGNORESTRADE’S

CONCERNSOVERPHVNUMBERSANDAPPs

PAGE 3

LORD WINSTON:BIKE LANES ADDTO POLLUTION

STITCHUP!

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Published byThe London Cab Drivers’ Club Ltd.

Unit A 301.3,Tower Bridge Business ComplexTower Point, 100 Clements RoadSouthwark, London SE16 4DG

Telephone: 020 7394 5553

E-mail for membership enquiries:E-mail: [email protected]

Web: www.lcdc.cab

Editor: Grant Davis

The Badge is distributed free to theLicensed London Cab Trade.

For advertising enquiries please contact the office on020 7394 5553 or E-mail: [email protected]

All advertising in The Badge is accepted under ourterms and conditions. These are available

at the LCDC office.

Before entering into any commitment, financialor otherwise, always remember to seek

professional advice.

The views expressed in this publication are notnecessarity those of the Editor or of the

Management Committee of theLondon Cab Driver’s Club.

Contributions for publication are welcomedand should be sent to the Editor at the

above address.

The London Cab Drivers’ Club Ltd.

Printed by Iliffe Print. T: 01223 656500www.iliffeprint.co.uk

2 Issue 266 - February 2019

In our first edition of 2019, wefind ourselves embroiled yetagain in more turmoil andangst regarding both ourMayor and TfL.

Not only are we being restrictedon many well known and usedroads, TfL have also announced tothe trade a bombshell consultationregarding reducing age limits ontaxis to just 12 years.

At the same time Addison Leeannounced it was purchasing1,200 Euro 6 diesel VolkswagenSharan people carriers to complywith the new ULEZ requirements.Chief Executive, Elsa Burgerstated, “whilst they were keen tomove to an electric fleet... wewere unable to do so over thelimited charging infrastructurewhich would not support the shiftto electric”, It is also pertinent thatTfL have stated that all the busfleets must be Euro6 diesel by2020.So, the Club must ask - why are

taxis being made the scapegoatwhen it comes to pollution inLondon? In the last three yearsthere has been a drop of taxisentering the congestion zone by15%.According to the Mayor, we areresponsible for 20% of pollution inthe capital, but we know thefigures he is using are from 2013and since that time we have lost2,000 taxis but added 50,000 PHonto our streets.Last year, TfL licensed over46,000 diesel PHVs, of which8367 were new vehicles.

Below you can see a chart thatindicates various modes oftransport and their pollutionpercentage.

Grant DavisLCDC Chairman

WHAT’S GOODFOR THE GOOSE...?

Weat theLCDCdon’t oftenbangourowndrumwhen it comesto helping our members with their legal troubles. A lot of thecases which come our way withmembers are quite sensitive andwe respect their wishes to keep things in house and out of thepaper which I can fully appreciate.

However, not only doPayton’s Solicitors offer ourmembers a 24Hour Duty Solicitor 365 days a year, but since getting involvedwith the Club, our solicitor Keima Payton has the distinction ofhaving a100%success rate in all her caseswhich shehashandledon behalf of the Club’s members.

Keima Payton has a fearsome reputation in court and shouldever the need arise you will find no one better able to fight yourcorner and save your Badge than Keima.

- Grant Davis, LCDCChairman

Tel: 0207 405 1999FAX: 0207 405 1991

PAYTON’S SOLICITORSSuite 12, Temple Chambers,

3, Temple Avenue,London EC4Y 0HP

CHART SHOWINGVEHICLEPOLLUTION

LEVELS IN THECAPITAL

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Issue 266 - February 2019 3

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As you can see from someof the Governmentrecommendations in the“Task & Finish” reportpublished this week, itwould appear that thosemeetings between ChrisGrayling & Dara were morethan fruitful?As we are aware, UBER

want more than Londonand to help them achievetheir goals, they need aGovt that’s on their sideregardingrecommendations overvital Taxi & PH legislation.As you can see frombelow, the three mainbones of contention for

the taxi Trade in Londonare:A. Capping PH numbersB. Plying for hireC. App regulation

Reading the Uber...sorry,Govt recommendationsthey have no appetite tolook at changing any of

the above.The disappointing side ofall this for the cab trade isSteve Mac at the LTDA hasbeen the sole taxi traderepresentative and as suchnone of us have been privyto any suggestions putforward or any updates forthe other Trade Orgs

throughout the last twoyears.More recently with theMayor who is now usingSteve McNamara’sstatement that there wouldbe 9k ZEC taxi on thestreet by 2020 to threatenus with a twelve year agelimit.

GOVERNMENT/ ‘UBER’TASK & FINISH REPORT

Somekeyexcerpts fromthe report:TFGRecommendation 5As the law stands, plying for hireis difficult to prove and requiressignificant enforcementresources. Technologicaladvancement has blurred thedistinction between the twotrades.Government should introduce astatutory definition of both plyingfor hire and pre-booked in ordertomaintain the two-tier system.This definition should includereviewing the use of technologyand vehicle 'clustering' aswellas ensuring taxis retain the soleright to be hailed on streets or atranks.Government should convene apanel of regulatory experts toexplore and draft the definition.

Government response2.11Thismatter was the subjectof specific consideration by theLawCommission in the courseof its review. TheCommissionultimately concluded that astatutory definition of plying forhire would not be a practicalimprovement on the currentposition. This decisionwasreachedwith the advice of anexpert panel establishedspecifically for the purpose ofdiscussing reform of "plying forhire". TheCommission'smainreason for reaching thisconclusionwas that whether avehicle is plying for hire inparticular circumstances is amatter of fact and degree thatthe courtsmust consider. Itconcluded thatmany of thecurrent grey areaswould remainunresolved as no statutory list offactors could be sufficientlydeterminative to give clearguidance.

2.12Wehave no reason tobelieve that the legal situationhas changed since 2014, andthus no reason to believe that anew or reconvened expert panelwould reach a differentconclusion.As a result, theGovernment does not intend totake this recommendationforward at this time.

TFGRecommendation 6Government should requirecompanies that act asintermediaries betweenpassengers and taxi drivers tomeet the same licensingrequirements and obligations asPHVoperators, as thismayprovide additional safety forpassengers (e.g. though greatertraceability).

Government response2.13 PHVoperators, andcompanies that act asintermediaries for taxi bookings,

do perform functions that appearvery similar. However, theGovernment is not convincedthat there is a compelling casefor the licensing of taxiintermediaries (such as taxiapps or radio circuits).2.14An operator is fundamentalto the booking of a PHV, and sohas a distinct and legallynecessary role in the regulatory

system. Conversely, when a taxiis requested via an intermediary,that intermediary is doingnothingmore than passengerscould do themselves - theymerely convey the request fromthe passenger to a taxi driver.This is unlike the situationwithPHVswhere it would be illegalfor the passenger to engage theservices of the driver directly,and the involvement of the PHVoperator is necessary tomakethe journey a lawful one. Thisdistinction reflects the greater

degree of regulation applied totaxis thanPHVs.2.15The LawCommission alsoconsidered this, and concludedthat intermediariesworkingsolely with licensed taxis shouldnot require licensing.

TFGRecommendation 7CentralGovernment andlicensing authorities should 'levelthe playing field' bymitigatingadditional costs faced by thetradewhere awider socialbenefit is provided – for example,where awheelchair accessibleand/or zero emission capablevehicle ismadeavailable.

Government response2.16Government is aware ofthe additional cost involved inthe purchase of awheelchairaccessible vehicle

TFGRecommendation 8Government should legislate toallow local licensing authorities,where a need is proven througha public interest test, to set a capon the number of taxi andprivate hire vehicles theylicense. This can help authoritiesto solve challenges aroundcongestion, air quality andparking and ensure appropriateprovision of taxi and private hireservices for passengers, whilemaintaining drivers’workingconditions.Government response2.20 Local licensing authoritiesoutside London can currentlylimit the number of taxis theylicence, provided there is nosignificant 'unmet demand' fortaxi services in their areas. It isnot currently possible by law forany licensing authority inEngland to limit the number ofPHVs it licenses.2.21TheTFGmembers haddiffering opinions on thisrecommendation, recorded intheir comments in the annex to

the report; Transport for London(TfL) strongly supports it, whilesome othermembers flagconcerns about the effects oncompetition in particular.Competition benefits consumersby incentivising operators to givevalue formoney, to innovate,and drive improvements inservice standards.2.22Of particular concernwouldbe any potential impact onsafety.An undersupply ofvehicleswould increasewaittimes and cause people to bestranded in vulnerablesituations, potentially increasingthe use of unlicensed, unvettedand illegal drivers and vehicles.We acknowledge that therecommendation is that licence'caps' should require a publicinterest test, whichmay allow forconsideration of any negativeimpacts. Nevertheless, thepotential negative impacts ofcapping for passengers areconsiderable, and real-lifedemand for taxi andPHVservices can be very difficult toaccurately calculate. Reducingthe availability of PHVs couldalso result in higher prices forpassengers, as, unlike taxis,PHV fares are not controlled.2.23There has been significantgrowth in the number of PHVslicensed in London in recentyears; therewas an increase of66%betweenMarch 2014 andMarch 2017, fromaround53,000 vehicles to nearly88,000. Since then, the numberdoes appear to have stabilisedat around 87,500.4TfLhascongestion charging powers,and has announced followingpublic consultation that theexemption from the congestionTo read the report in full, visit:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/775983/taxi-task-and-finish-gov-repsonse.pdf

Nusrat Ghani MP, Parliamentary Under Secretary ofState for Transport

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4 Issue 266 - February 2019

www.lcdc.cab

LCDCSUPPORTPROTESTDRIVERS ALSO VOICEANGER OVER PROPOSEDTWELVE YEAR AGE LIMIT

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Issue 266 - February 2019 5

OVER STREET CLOSURES

LL..CC..DD..CC LLEEAADDEERRSS NNOOTT FFOOLLLLOOWWEERRSSStop talking about it andJOIN!

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The capital's pro-cyclingcampaigners have hit backat Lord Robert Winstonafter he claimed that bikelanes increase pollution.The professor said in adebate in the House of Lordson Monday that he believescycle lanes cause increasedlevels of pollution by forcingcars and vans to travel moreslowly.Calling on the government topublish figures for pollutionlevels both before and afterthe introduction of cyclelanes, he claimed: "Thereduction of lanes whichtraffic can travel downmeans that there are morecars taking longer journeysthan ever before at slowerspeed“The evidence is that theinternal combustion engine isless efficient and pollutesmore at slow speedparticularly when it’swaiting.”Simon Munk, infrastructurecampaigner for the London

Cycling Campaign told theStandard: “As a scientist Iexpect Lord Winston to backup his claims with evidence,all studies so far show thatmost cycle schemes inLondon have decreasedpollution.”Although Lord Winston didnot point to any cycle lanesin particular, Mr Munk saidthat he assumed he wastalking about the east to westand north to south cyclesuperhighway schemes.He said: “Pollution monitorsalong the embankmentactually show a marginaldecrease in pollution levelssince the cycle schemeswere brought in."Mr Munk also hit out atTransport Minister, BaronessSugg, who took part in thedebate and said the theconstruction of bike laneshad reduced available spaceon the roads increasingcongestion.Pointing to a TFL studywhich found that the primary

cause of the increase incongestion was down tounnecessary car journeys,Mr Munk rejected hercomments.He said that the study foundthat there was no evidencethat cycle lanes had a"significant impact onslowing cars down”.In order to decreasecongestion, Mr Munk

suggested that more peopleshould ditch motor vehiclesin favour of cycling orwalking.Pointing out the Mayor’spledge to halve the numberof private car journeys onmain roads by 2041, he said:“The Mayor knows that theonly way to get out of theslow jam is to build more forcycling."

A spokesman for SadiqKhan's office also disputedMr Winston’s comments.He said: “Cycle lanes do notcause congestion andpollution. With our limitedstreet space it is vital that weencourage more Londonersto cycle, walk and use publictransport. These are cleanerand more efficient uses ofour roads, with cycle lanesproven to help move peoplealong our streets.“With London’s populationset to expand to 10.8 millionover the next 25 years,making our capital one of thebest cities in the world forcycling is not only aboutimproving our health,wellbeing and quality of life,it is absolutely fundamentalfor our future economicprosperity.”Currently, Britain has one ofthe lowest rates of cycling inEurope with only four percent of Britons cycling dailycompared to 43 per cent ofpeople in the Netherlands

Issue 266 - February 2019 7

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George Osborne, whoserved as the U.K.’sChancellor of theExchequer under PrimeMinister David Cameronfrom 2010 to 2016, hastoday blamed cyclists forLondon’s trafficcongestion.Writing in the EveningStandard newspaper, whichhe has edited since May2017, Osborne wrote thatLondon's “choking gridlock”was caused not by too manymotor vehicles but byinfrastructure built forcyclists.Specifically, he blames theEmbankment Cyclewaybesides the Thames, built in2015, and which took thespace that was oncereserved for parking touristcoaches along this stretch ofroad close to the Houses ofParliament. Until the 1950s,this part of the road was atram line.Osborne said he“applauded” the fact Londonwas now “one of the morebicycle-friendly cities in theworld” but he has come outagainst one of the icons ofthat friendliness.Without citing any evidencehe claimed that “some of thecycle superhighways are ill-conceived, causing near-permanent congestion and

pollution. The one runningalong the Embankment isthe most obvious mistake.”The Embankment Cyclewaywas installed under theleadership of former LondonMayor Boris Johnson, apolitical rival of Osborne.According to Transport forLondon, almost 7,500 cycletrips were made along theEmbankment each daybefore the protectedcycleway was installed.Since the creation of thecycleway the number ofcycle journeys haveincreased by 38% to morethan 10,300 a day.Despite the many millions ofpounds it cost to create thecycleway, Osborne wants itto be destroyed: “If theMayor, Sadiq Khan, startedagain with a better design onthe Embankment, he wouldwin plaudits and support forthe further work to makeours a capital of cycling.”Osborne is the secondformer Chancellor to objectto London’s tiny number ofprotected cycleways.During a debate in theHouse of Lords in 2015, LordLawson incorrectly claimedthat the building ofcycleways in London haddone more damage toLondon “than almostanything since the Blitz.”

Nigel Lawson was the UK’sChancellor of the Exchequerbetween 1983 and 1989. Heis also a leading climate-change denier.His comments were in adebate where fellowConservative peer LordHiggins had steered thesubject on to cycle lanes,blaming not motoring forLondon’s foul air but cycling.He said the “appallingincreases in congestion andpollution” were “caused bythe introduction of bicycle

lanes.”Answering this strange claimwith an even more bizarreone of his own, Lord Lawsonsaid:My Lords, we all know theMayor of London’s addictionto cycling, but is my noblefriend Lord Higgins notabsolutely right that what ishappening now has donemore damage, and is doingmore damage, to Londonthan almost anything sincethe Blitz?George Osborne’s

intervention is significantbecause the EveningStandard is London’s leadingdaily newspaper and canoften shape debate in theU.K. capital.Last week, writing in thesame newspaper, London’sWalking and CyclingCommissioner Will Normansaid: “It’s more high-qualitycycle lanes, not fewer, thatLondon needs to sustain itssuccess. And that is exactlywhat we are delivering.”Courtesy of Forbes

OSBORNE BLAMES CONGESTION ON CYCLISTS

LORD WINSTON: CYCLE LANES ADD TO POLLUTION

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Issue 266 - February 2019 9

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As part of the Mayor ofLondon’s Healthy StreetsVision, Westminster CityCouncil is proposing tointroduce a pilot “SchoolStreet” scheme outside St.Mary’s Bryanston SquareChurch of EnglandPrimary School in EnfordStreet.The main objective of a schoolstreet is to enhance roadsafety and provideopportunities for children to beactive through travel and playby closing a road duringschool opening and closinghours.This initiative is being pilotedto create a safer and morepleasant environment at thestart and end of the schoolday as part of the CityCouncil’s Active StreetsProgramme and Air Qualitypledge to create clean airzones outside and within thedirect vicinity of schools.It is proposed to close EnfordStreet to motor vehiclesbetween 8.00 a.m. and 9.00a.m. and between 2.45 p.m.and 3.45 p.m. on Mondays toFridays, during school termtime. The closure would becontrolled through the

installation of removablebollards at the junction ofEnford Street and York Street.The traffic signs would not bevisible during school holidays,and advanced warning signswould be placed to advisedrivers of the closure.It is also proposed to introducedouble yellow line “at anytime” waiting and loadingrestrictions at the junction ofYork Street with Enford Streetand the south-western arm ofWyndham Place to preventobstructive parking.What I can’t understand aboutthis scheme is the councilwants to create clean airzones outside and within thedirect vicinity of schools. butthis school sits on top of oneof the most congested andpolluted roads in London andthat pollution will always be inthe area. The area in andaround Enford St is not goingto all of a sudden be pollutionfree. Closing this road willmake the near by road ofSeymour place heavier and Idon’t think they will give usanymore green time to allowus and our passengers to getto Marylebone Station. I do gettrying to make the area aroundthe school entrance safer for

the children but feel that WCCshould also be concentratingon how the kids get to school

and try and get the parents tomake their school runs in adifferent mode of transport and

not block up the alreadycongested roads in andaround the school.

Alan’s AngleANOTHER ROAD CLOSURE

IN WESTMINSTER

This month saw the end of thetrial of the Taxi Rank in Basil St.This has come to end due toresidents complaining of Taxisover ranking in the side streets. We have had many discussionsover the last year with TPH,Harrods and Kensington Council to

try and solve the problem with Taxisqueueing up around Harrodslooking for work. All parties involvedare trying to work this out for usand the residents. The rank was a trial andunfortunately it hasn’t worked butwe’ve given the council andHarrods a few other proposals tolook at. Hopefully we can try andget another feeder rank in anotherposition in Basil Street and alsomaybe a trial of making Hans Roadone way at the junction of BasilStreet.I will keep you informed after thenext meeting with the stakeholdershappens. This was the tweet fromTPH confirming the rank closure:

Today is the last day of the trialfeeder rank on Basil Street outside

Harry Dolce Vita restaurant. As aresult of issues with over-rankingon Hans Road and Hans Place, thecouncil has decided not to continuethe trial. The yellow box will remainin place.

Taxi toilet trialsAs you may recall, the Mayorcommitted, in his Taxi andPrivate Hire Action Plan, togiving taxi drivers better accessto toilets on the TfL estate. This took the form of an initial trialwhich provided taxi drivers withaccess to toilets within OxfordCircus and Warwick Avenue Tube

stations. Unfortunately, due to the minimaluse of the facilities at these twostations, this trial was notsuccessful and was subsequentlywithdrawn. I am pleased to inform you thatfrom Monday 11 February 2019, wewill be commencing an enhancedthree month trial, which includesparking provision at nearby restranks, at four London Undergroundstations:Leicester SquareOxford CircusVictoriaBaker Street

Please be aware that any misuse ofthe facilities or anti-social behaviourwill result in the termination of thetrial.

Harrods feeder rankupdate

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Issue 266 - February 2019 11

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Transport bosses arefacing a furiousbacklash over a £350million proposal torelocate Victoria CoachStation to a residentialarea near Paddington.Campaigners claim thearrival of the capital’s mainbus terminal, which is usedby 14 million passengers ayear, would “pollute ourneighbourhood and blightour landscape”. Transport for Londonbelieves the Grade II listed,Art Deco building inBelgravia is no longer viablefor a coach station.One option beingconsidered is a strip of TfL-owned land on railwaysidings by Royal Oakstation, near the gardensquares of Bayswater.The proposal, which wouldalso include new housing,has “horrified” residents andreceived cross-partycondemnation at the Tory-run borough of Westminster.

More than 2,000 peoplehave signed petitionsagainst it.Bayswater Labour councillorMaggie Carman said theresidential area was a “veryunsuitable site” for one ofEurope’s busiest coachhubs.She said: “There’s alreadyissues with congestion andit’s one of the most ¬pollutedbits of London. This will justmake it worse.”She warned that, ifhundreds of coaches camethrough the area, gardensquares would be a magnetfor rough sleepers and tiredtravellers. “It would justchange the character of thearea completely,” sheadded. Nearly a quarter of a millioncoaches arrive and departannually from the 87-year-old Victoria terminal, serving1,200 destinations in the UKand 400 foreign cities. TheDuke of Westminster’sGrosvenor Group owns the

freehold of the 3.3-acre site,thought to be worth £150million.Emily Payne, a Conservativecouncillor for Bayswater whogrew up in the area, said a24-hour coach station atRoyal Oak would be

“incredibly disruptive”,adding: “It’s a residentialarea where families havelived for generations. “There is a high number ofprimary schools in the area,and the impact on thepollution will be terrible.”

TfL says no final decisionhas been taken. The hubcould be split into severalmini-stations scatteredaround London, while OldOak Common, Heathrow orStratford are other possiblelocations.

PLAN TO SELL OFF COACH STATION

The Cab Chat Team wouldlike to wish all our listeners aHappy New Year and wehope that 2019 has got off toa good start or you.Cab Chat is now back after ashort unplanned break, (pleaselisten to episode 195 to find outwhy we took a break). We haveall the usual features in theshow plus a lot of new onesplanned for the coming year.The next Cab Chat Pie & MashClub meet is on Monday 4thMarch 2019 at Flo’s in Crayfordat 2:00pm, this is the big onewhere many of the team will betaking on the 5 Pie Challenge,this is where you must eat 5Pies, Double Mash and Liquorin 20 minutes. If any of ourlisteners want to come alongand join us in the 5 PieChallenge, please do so and wewill pay for your Pie & Mash.4th March will also be the day

when we record the 200th CabChat Radio Show, we have nowbeen bringing you Cab Chatevery week for over 4 years andplan to carry on bringing you aweekly show. During the 200thshow we will be looking backover the past 4 years andplaying some of the highlightsfrom previous shows.The Cab Chat Cheesy BoatCruise and Awards will be laterthis year (dates to be confirmedsoon) The Jukebox Party Bandof Joe and Jon we be providingthe entertainment on the boatalong with the Cab Chat Teamplus of course the coveted CabChat Awards. We are expectingthis to be a popular event so getyour tickets early when they goon sale.Cab Chat Team members Joeand Jon have been coveringsome of the demos with thevery popular Periscope videos

that go down very well with thetrade, it can be very tiringwalking around with a cameraand mic for 3 hours talking,especially during the coldweather, so a massive welldone and thank you to Joe &Jon.Joe and Jon have also brought

out another track “Save the lastdance for me” which is availablefor purchase and download oniTunes and also available inSpotify, you can find the links onour website, this track comesafter the success of theirChristmas single “Christmasjust wont be Christmas withoutyou” which was well receivedand was played on RadioLondon by friend of the tradeDuncan Barkes.Good news for Cab Chat is thatPlan Insurance and Drivertaxhave agreed to carry onSponsorship of the show for2019, this helps us to pay forthe costs associated withproducing the show each weekand the purchase of equipmentas our older stuff wears out.January 26th was the AnnualHack Shack Dinner & Dancewhich is quickly becoming oneof the highlights of the trades

social calendar. This year’sparty was held at the TudorPark Marriott in Bearsted Kent.Revellers sat down to a 3course meal with wine on thetable, then were entertained bythe Jukebox Party Band of Joe& Jon and Disco by Simon allfor the very reasonable price of£45.00 per person. There wasalso a raffle which raised over£600 which is to be donated tothe Magical Taxi Tour. The nightwas a roaring success witheveryone commenting that itwas the best one so far and thatthey will definitely be goingagain next year.If you would like to get in touchor contribute to the show in anyway, produce a feature or justsend in a voice sound bite airingyour views, please visit ourwebsite at http://cabchat.londonor give us a call on 020 81448294.

Cab Chat show

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By steamrolling local taxi operationsin cities all over the world andcultivating cheerleaders in thebusiness press and among SiliconValley libertarians, Uber has managedto create an image of inevitability andinvincibility. But the company justposted another quarter of jaw-dropping losses — this time over $1billion, after $4.5 billion of losses in2017. How much is hype and howmuch is real?The notion that Uber, the most highlyvalued private company in the world, is atextbook “bezzle” — John KennethGalbraith’s coinage for an investmentswindle where the losses have yet to berecognized — is likely to come as asurprise to its many satisfied customers.But as we’ll explain, relying on theextensive work of transportation expertHubert Horan, Uber’s investors havebeen buying your satisfaction in the formof massive subsidies of services. Whathas made Uber a good deal for usersmakes it a lousy investment proposition.Uber has kept that recognition at bay viaminimal and inconsistent financialdisclosures combined with a relentlessand so far effective public-relationscampaign depicting Uber as following thepattern of digitally based start-ups whoselarge initial losses transformed into strongprofits in a few years.Comparisons of Uber to other storiedtech wunderkinder show Uber is not onthe same trajectory. No ultimatelysuccessful major technology companyhas been as deeply unprofitable foranywhere remotely as long as Uber hasbeen. After nine years, Uber isn’t withinhailing distance of making money andcontinues to bleed more red ink than anystart-up in history. By contrast, Facebookand Amazon were solidly cash-flowpositive by their fifth year.The fact that this glorified localtransportation company continues to bea financial failure should come as nosurprise. What should be surprising isthat the business press still parrots thefond hope of Uber’s management thatthe company will go public in 2019 at atarget valuation of $120 billion. That’s wellabove its highest private share sale, at avaluation of $68 billion. And Uber’smanagement and underwriters will nodoubt hope that the great unwashedpublic looks past the fact that morerecently, SoftBank bought out insiders ata valuation of $48 billion, and its offer wasoversubscribed. Why should new moneycome in at a price more than doublewhere executives and employees wereeager to get out?Uber has never presented a case as towhy it will ever be profitable, let aloneearn an adequate return on capital.Investors are pinning their hopes on asuccessful IPO, which means findinggreater fools in sufficient numbers.Uber is a taxi company with an appattached. It bears almost noresemblance to internet superstars itclaims to emulate. The app is nottechnically daunting and and does not

create a competitive barrier, as witnessedby the fact that many other players havecopied it. Apps have been introduced forairlines, pizza delivery, and hundreds ofother consumer services but have nevergenerated market-share gains, muchless tens of billions in corporate value.They do not create network effects.Unlike Facebook or eBay, having moreUber users does not improve the service.Nor, after a certain point, does addingmore drivers. Uber does regularly claimthat its app creates economies of scalefor drivers — but for that to be the case,adding more drivers would have tobenefit drivers. It doesn’t. More driversmeans more competition for availablejobs, which means less utilization perdriver. There is a trade-off betweencapacity and utilization in a transportationsystem, which you do not see in digitalnetworks. The classic use of “network

effects” referred to the design of anintegrated transport network — an airlinehub and spoke network which createutility for passengers (or packages) byhaving more opportunities to connect tomore destinations versus linear point-to-point routes. Uber is obviously not a fixednetwork with integrated routes — taxipassengers do not connect betweendifferent vehicles.Nor does being bigger make Uber abetter business. As Hubert Horanexplained in his series on NakedCapitalism, Uber has no competitiveadvantage compared to traditional taxioperators. Unlike digital businesses, thecab industry does not have significantscale economies; that’s why there havenever been city-level cab monopolies,consolidation plays, or even significantregional operators. Size does notimprove the economics of delivery of thetaxi service, 85 percent of which aredriver, vehicle, and fuel costs; theremaining 15 percent is typicallyoverheads and profit. And Uber’s ownresults are proof. Uber has kept bulkingup, yet it has failed to show the rapidmargin improvements you’d see if costsfell as operations grew.If Uber were to drive all competitors out ofbusiness in a local market and then jack

up prices, customers would cut back onuse. But more important, since barriers toentry in the taxi business are low, andUber lowered them further by breakinglocal regulations, new players wouldcome in under Uber’s new priceumbrella. So Uber would have to drop itsprices to meet those of these entrants orlose business.Moreover, Uber is a high-cost provider. Afleet manager at a medium-scale YellowCab company can buy, maintain, andinsure vehicles more efficiently thanindividual Uber drivers. In addition,transportation companies maintain tightcentral control of both total availablecapacity (vehicles and labor) and howthat capacity is scheduled. Uber takesthe polar opposite approach. It has noassets, and while it can offer incentives, itcannot control or schedule capacity.The only advantage Uber might have

achieved is taking advantage of itsdrivers’ lack of financial acumen — thatthey don’t understand the full cost ofusing their cars and thus are giving Ubera bargain. There’s some evidence tosupport that notion. Ridester recentlypublished the results of the first study touse actual Uber driver earnings,validated by screenshots. Usingconservative estimates for vehicle costs,they found that that UberX drivers, whichrepresent the bulk of its workforce, earnless than $10 an hour. They would dobetter at McDonald’s. But even this offsetto the generally higher costs of fleetoperation hasn’t had an meaningfulimpact on Uber’s economics.But, you may argue, Uber has all thatdata about rides! Certainly that allows it tobe more efficient than traditional cabs.Um, no. Local ride services havebackhaul problems that no amount ofcleverness can remedy, like takingcustomers to the airport and eitherwaiting hours for a return fare or comingback empty, or daily urban commutes,where workers go overwhelmingly in onedirection in the morning rush and theother way in the evening. Similarly,Uber’s surge pricing hasn’t led customersto change their habits and shift their tripsto lower-cost times, which could have led

to more efficient utilization. If Uber hadany secret sauce, it would have alreadyshown up in Uber revenues and averagedriver earnings. Nine years in, andthere’s no evidence of that.While Uber has reduced its negativegross margin over time, thoseimprovements have come mainly fromsqueezing driver compensation, so thatthey now net less per hour on averagethan taxi operators.Through 2015, 80 percent of fares wentto drivers. In its early years, Uber gavedrivers high payouts to attract gooddrivers and also offered drivers incentivesto buy cars. Uber cut that to as low as 68percent, then partially reversed it asdriver turnover became acute to itscurrent, roughly 70 percent level. In 2017,Uber’s margin as reported using GAAPwas a negative 57 percent. It would havestayed at the negative triple-digit levelabsent the driver pay-throttling.The pay cuts have led to more driverturnover, which leads to highermanagerial costs. And it is degradingservice quality. A comment on an articleabout Uber’s third-quarter earnings:I needed a ride from Burbank to LAX ona Thursday morning around 5:45 AM. Irequested a car the night before. Atpickup time there wasn’t a Lyft or Uberwithin 20 miles. When I did get one thedriver said that at the rate they are beingpaid it wasn’t worth getting out of bedearly anymore.Uber’s other way of making its marginsless terrible has been ditching its worstoperations. But even then, Uber’s newCEO Dara Khosrowshahi effectivelyadmitted that Uber isn’t profitable in anymarket when you factor in corporateoverheads. Uber has been franticallyadding new business like Uber Eats andscooter rentals to keep its growth storyalive. Uber not only tacitly admits thatthey aren’t covering their costs, it refusesto give any detail about these operationsbeyond their revenues and does notdiscuss what it would take for them toturn the corner.But what about driverless cars? Let’s putaside that some enthusiasts like Appleco-founder Steve Wozniak now believethat fully autonomous cars are “not goingto happen.” Fully autonomous cars wouldmean Uber would have to own the cars.The capital costs would be staggeringand would burst the illusion that Uber is atechnology company rather that a taxicompany that buys and operatessomeone else’s robot cars.Uber has succeeded in getting thebusiness press to treat its popularity asthe same as commercial success. A fewtech reporters, like Eric Newcomer ofBloomberg, have politely pointed out thatUber’s results fall well short of other techilluminati prior to going public. The pitchthat dominance would produce profits isdemonstrably false and Uber seemsunable to come up with a new story.There’s every reason to think thatinvestors, not local cab companies, willwind up being Uber’s biggest roadkill.Courtesy of Intelligencer

UBER IS HEADED FOR A CRASHIssue 266 - February 2019 13

www.lcdc.cab

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KINGSTON & WIMBLEDON TAXIS

TX2’s rental from £150 PW*

Spare Cabs always available

24 Hour Breakdown Service

Call 0208 391 1600 for more information

* Exclusive for yellow badge drivers

Excellent Rental Rates for Green Badge & Yellow Badge Drivers

Accident Repairs / MOTs / Bodyshop / Overhauls / ServicingTyres / Meters / Gearbox Specialist Repairs

14 Issue 266 - February 2019

The London Electric VehicleCompany (LEVC) is to lay off 70temporary employees, accordingto information from the BBC.Reasons were not given, but it islikely that Brexit has played arole.According to the British company,only workers on temporarycontracts will be affected by thechanges. They asserted that it was“important affected staff are treatedin a fair and transparent way”.The London Taxi Company, sincerenamed LEVC, faced financialproblems in 2013 before China’sGeely Holding Group stepped in torescue the firm. In 2017 the company opened its£300m Ansty plant, creating morethan 1,000 jobs.LEVC recently announced a globalreorientation of its commercialvehicle strategy in cooperation withits parent company Geely. The British company has recentlyfilled orders in Germany andFrance, but with Brexit, things maychange.The exact reasons for the layoffsare unknown, however; a LEVCspokesperson only said that “2019will be a challenging year for theBritish automotive industry.”The change could also have to do

with new leadership. After the current CEO Chris

Gubbey announced his retirement,LEVC appointed the former Audi-

and GM-Manager Jörg Hofmann ashis successor reportedly.

LEVC ANNOUNCE JOB CUTS

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Issue 266 - February 2019 15

www.lcdc.cab

Few know that Londonintroduced Rum to GreatBritain, having historicallybeen a vital internationaltrading port! The RoyalNavy’s connection withRum can traced as farback as the 17th century,when the tradition of aRum Ration, popularlyreferred to as a ‘Tot’, wastendered to their sailors atmid-day, until as recent asthe mid-1970s. For themore curious, a ‘Tot’consisted of a generousone-eighth of an imperialpint (71mL) of Rum at 95.5proof (54.6% ABV)!To honour this heritage andrealise a long-held dream,Moses Odong, a LondonCabby, has opened the firstever Rum Distillery, at MileEnd. Named after his currentprofession, Taxi Spirit Co.will drive Moses’ passion tocraft a range of premium

quality Rums for the UK, andto the international market aswell! Taxi Spirit Co. is the firstbusiness of its kind inLondon. Honouring tradition,Taxi Spirit Co distills its ownRum from cane molasses, tocreate intense, robust,bittersweet flavours, carefullybalanced to tantalise yourtaste buds for maximumenjoyment! After five years of hard workand passion in developingand perfecting the craft ofrum distillation, Taxi Spirit Cois proud to launch their firstproduct, ‘Cabby’s WhiteRum’, with rich, full-bodiedtaste notes of sweet cane,delicious black treacle, a hintof oak and refreshingcoconut and citrus! At 41.2%ABV, this fantastic drink isavailable in 50 cL bottles, ata retail price of £29.50., toenjoy as is, on the rocks, as

the popular rum ‘n’ cola, or indelicious cocktails!Taxi Spirit Co also offersCabby's Gin, born out of avery fortunate accident whileexperimenting with juniperand few other botanicals fortheir spiced rum. Distilledfrom molasses spirit, this ginis crafted with eightscintillating botanicals.It has been an arduousjourney, but Moses has stuckto his guns and made it, withsupport from his lovely (andvery patient!) partner BiancaWhiskey. Apart from theirnatural affinity for distilling,

having had families withdomestic distillation traditionback home in Uganda andJamaica, Moses and Biancaare helped by AbhishekBanik, a technical expert,and ex-ICBD (InternationalCentre of Brewing andDistilling at Heriot-WattUniversity) graduate in theprofession, and backed by adear Cabby friend, FrankTumwesigye.Reflecting on their journeyso far and the path ahead,they said: “Taxi Spirit Coteam is proud of being partof and further propelling the

craft revolution by distillingtheir Rums from scratch, inthe heart of his home city, forall the wonderful people wholove, and will love rum!“Just within a month oflaunching we have scoopedsix awards at theInternational Wine and SpiritCompetition 2018. We arespeechless. Our productspeaks for itself.”

The Cabby’s Rum isavailable at TT LiquorShoreditch, The WhiskyExchange, and online atTaxiSpirit.com.

CAB DRIVER WINS RUM AWARDBlack cab driver wins IWSC Rum & Cola Trophy –for London’s only white rum“In the daytime, I drive a black cab. At night time,I distil.”

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Issue 266 - February 2019 17

Application FormPlease complete this form in BLOCK CAPITALS

The subscription rate is £170 per annum. If you are unable to pay in asingle payment please make one cheque payable to “The London CabDrivers’ Club Ltd,” with today’s date, for £56.67, and two post-datedcheques one month apart for £56.67.

Send the completed form to: THE MEMBERSHIP SECRETARY,The London Cab Drivers’ Club Ltd, UNIT A 303.2Tower Bridge Business Complex, Tower Point, 100 Clements Road, Southwark, London SE16 4DG

Mr/Mrs/Miss/Ms:.................... Surname: ......................................

First Names:......................................................................................

Address: .......................................................................................................................................... Post Code: ......................................Badge No: ............................. Email: ...............................................Telephone No: (with full STC code):................................................

I agree to abide by the rules of the Club. I also agree that the aboveinformation will be kept by the LCDC in a computer system under theterms of the Data Protection Act.

I understand that I will not be eligible for legal representation for matters arising prior to the date of this application. Thereby declare thatI have no outstanding PCO or police matters pending.

Signed: ...................................... Date: ......................................

Please complete this form and send it with your application form

(LCDC) Ltd UNIT 303.2TOWER BRIDGE BUSINESS COMPLEX, TOWER POINT,

100 CLEMENT’S ROAD, SOUTHWARKLONDON, SE16 4DG

0207 394 5553

Standing Order Form

Your Bank: .........................................................................................Your Bank Address:............................................................................Post Code:..........................................................................................

Please pay the sum of £15 NOW and monthly thereafter until further notice.

Please pay the sum of £42.50 NOW and then quarterly thereafter until further notice.

Quoting Reference No ( )

To the account of THE LONDON CAB DRIVERS’ CLUB LTD, Barclays Bank Bloomsbury & Tottenham Court Road branch,

PO BOX 1134, London W128GGSort Code 20-10-53. Account No- 40450421.

Your Name: .....................................................................................Account No: .....................................................................................Sort Code: .......................................................................................Signature: ........................................................................................Date: ..................................................................................................

AS AN L.C.D.CMEMBER YOU WILL RECEIVE:�� 24 HOUR DUTY SOLICITOR

EXCLUSIVE TO THE CAB TRADEYour 24 Hr duty solicitor hotline

membership card.Peace of mind 24 hrs of the day.

�� FULL LEGAL COVEROur fantastic team of City Of London based solicitors and barristers, experts in Hackney Carriage and road traffic law.

��COMPLAINTS AND APPEALSAs a member of the LCDC, we will deal with any complaint that has beenmade against you by members of the public.Also we will attend the LTPH with youon any personal appeals that would affect your licence.

��HEATHROW AIRPORT REPRESENTATION

With our reps at the airport working

hard on the trade’s behalf for a fairer, and more safer future at Heathrow.

��RANKS AND HIGHWAYSThe LCDC attend the Joint Ranks committee, working hard for more ranks and more access for the taxi trade in London.

��CAB TRADE ADVICEAll members can call the office for any information or up to the date news on any trade related subject.

�� TRADE’S FUTUREThe Club worked tirelessly in bringingin the green & yellow identifiers to the taxi trade.

And are always working hard to protect our future.

��CAB TRADE REPRESENTATIONWe are working hard to work with members of the GLA and also politicians to fight our corner against

TFL and was a major influence in the recent“ future proof” document.

�� VEHICLE MANUFACTURERSThe Club works alongside LTC andMercedes to deliver a vehicle that meets

our standard as a London taxi driver.Recently we have held meetings to workagainst the ULEZ strategy and theintroduction of taxi age limits.��CLUB PROTECTA

To help drivers who have acquiredtwelve points keep their licence.

Join over thephone - just calland we’ll takeyour payment

details* £12 per month is tax deductible

JUST £3 permonth

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Delivery jobs for two gigeconomy giants arebeing traded to allegedillegal immigrants in ablack market, a SundayTimes investigation hasrevealed.Workers at Deliverooand Uber Eats who havepassed vetting checksare offering up theirjobs online.Whistleblowers claim thatmigrants who are in Britainillegally are renting thesejobs without facing criminalrecord, insurance, right-to-work or passport checks.The buyers pay up to £100a week for accounts, givingthem the right to deliverfood. A legitimate rider innorthwest London said hebelieved dozens of accountsin his area were beingrented out.More than 500,000 peopledeliver takeaway food in theUK in a market worth morethan £4bn a year.Deliveroo was warned aboutthe trade in jobs to allegedillegal immigrants in August.A company representativeresponded: “We’ve beenreceiving numerous reportsof this happening, not just inLondon, but across thecountry.”Sayed Sayedi, 40, anAfghan who is in Britainlegally and works for UberEats, said people in thecountry illegally were rentingUber Eats and Deliverooaccounts. “They come fromItaly, from France, fromBelgium inside a lorry. Theyrent other people’saccounts.”In seven private WhatsAppand Facebook groupsmonitored by thisnewspaper, Uber Eats andDeliveroo accounts arebeing offered for rent or saledaily. The new worker canbe given the reward for theirlabours in cash, or the bank

details can be changed onthe account.Neither company stopscouriers changing the phonenumber and bank detailsassociated with the account.“Let’s get the working yearstarted,” read one NewYear’s Day message in aPortuguese-language groupcalled “Rent accountUber/Deliveroo” last week. “Iam renting Uber (£70) andDeliveroo (£60) / bothmotorbike / for women /message me privately ifinterested.”One message read: “I’mlooking for an Uber accountto rent temporarily for two tothree weeks, I am waitingfor a friend of mine who justarrived from Brazil.” It soonhad a reply: “I have anaccount for 100 a week forthose 3 weeks.”Uber Eats and Deliveroogenerate sales of more than£250m a year but attractcontroversy for refusing totreat workers as employees

entitled to benefits such asholiday and sick pay.Instead, the worker is acontractor who has a right toassign the deliveries tosomeone else — a featurethat is meant to show theworker’s independentstatus, meaning thecompany can avoid payingnational insurance.Deliveroo riders aresupposed to carry outchecks on their substitutesbut do not have to confirmthat this has happened.Uber Eats requires proof ofthe substitute’s drivinglicence and right to workwithin 24 hours and saysriders must informrestaurants of the change.A Deliveroo worker warnedthe firm in August that jobswere being traded online,writing: “There is a bigproblem in the area I work,with people working illegallyusing the [app] and in a waystealing my job. There are .. . Brazilians coming as

tourists and using accountsfrom [other] people workingevery single day takinghundreds of orders fromlegal riders and thendisappearing back to theircountries without paying apenny.”A Deliveroo “rider support”worker responded: “I canassure you we are takingthis very seriously as thisactivity is clearly not legaland ramifications for us arealso very serious.”Frank Field, chairman of theCommons work andpensions committee, saidsubstitute riders were a“desperate attempt” byDeliveroo and Uber Eats “toget around the fact riderswork for them”. He said theirmodel “exploits” substituteswho may be “illegally in thiscountry, whose status andhealth record has neverbeen checked, and whopresumably cannot pay taxor national insurance”.Uber Eats said the right to

use substitutes was a legalrequirement. The companyadded: “Anyone whodelivers with Uber Eatsmust adhere to a strict set ofsafety-based criteria,including being 18 years orolder, passing a criminalbackground check andholding a valid right to workin the UK.”Deliveroo said riders had tohave right-to-work andcriminal record checks, andwere responsible forensuring the same checkson their substitutes.“Deliveroo has a zerotolerance approach on thismatter . . . Any concernsraised will be fullyinvestigated.” The companysaid reports that illegalworkers were rentingaccounts were “allegedonly” and “completelyunproven”.

Courtesy of The Sunday Times

Deliveroo and Uber Eats takeawayriders rent jobs to ‘illegal immigrants’

18 Issue 266 - February 2019

www.lcdc.cab

LL..CC..DD..CC LLEEAADDEERRSS NNOOTT FFOOLLLLOOWWEERRSSStop talking about it andJOIN!

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A friend of mine took his liferecently and it made me think.Suicide is higher amongst middleaged men. Why? I think it’s becausewe don’t talk about anything butpolitics, women and sport.I wrote this poem. I know it’s notnormally the sort of thing that you’dexpect me to write but just in caseyou’re feeling crap.Talk to someone.

How do I say I cannot cope?That I am living a lie,Though I cry, I know I must try To look as though I can cope. .... But it’s a slippery slope.

Tears of a clown Like the creases of a frownBut I gotta be sound as a pound

I think it’s ok, that I’m keeping it inBut it ain’t the caseTake a good look at my faceAnd you will see I’m playing agame, I cannot win.

I wanna be weak... help I shouldseekbut that’s not street Just gotta find my feet then it’ll be sweet.

Gotta make a post, look like I’m

living the lifeThere is no trouble and strifeI’m living my best life

We all do that don’t we “put out the best bits, so the worldcan see” But is that really you, is this reallyme

Ima gonna take a second andcheck myself.Cos my mental health is moreprecious than superficial wealthReach out and touch somebody’shand Let them know you overstan

especially if it’s a manWalk the walkTalk the talk Let’s try to talk the walk:

SAMARITANS• 116 123 (UK)• 116 123 (ROI)Whatever you're going through, callus free any time, from any phone on116 123.We're here round the clock, 24hours a day, 365 days a year. If youneed a response immediately, it'sbest to call us on the phone. Thisnumber is FREE to call. You don'thave to be suicidal to call us.

EDDIE NESTOR MBE Drivetime: 4pm WeekdaysBBC Radio London 94.9

http://www.bbc.co.uk/programmes/p001d7

http://eddienestor.com/

https://twitter.com/eds30?lang=en

http://playbackmedia.co.uk/podcasts/the-manyoo-redcast/

TRIBUTE TO A FRIENDIssue 266 - February 2019 19

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Issue 266 - February 2019 21

The lawyer whospearheaded a landmarkcourt case - whichended with theEuropean Union’s topcourt ruling that the U.K.can unilaterally reverseBrexit - appeared incourt Wednesday for afresh battle, this timewith Uber TechnologiesInc.Jolyon Maugham, whoruns a group that raisesmoney for lawsuits thatpromote a progressiveagenda, says Uber shouldpay Value Added Tax, a 20percent U.K. sales tax onmost goods and services.Uber says it doesn’t needto because it’s only actingas an intermediarybetween drivers andriders.Uber would owe 1 billionpounds ($1.3 billion) ifMaugham won his case,once backdated paymentsare counted, Maughamsaid outside court, citinghis own calculations.His lawyer VikramSachdeva said at the courthearing that the casecould leave Uber liable foran estimated annual taxbill of 200 million pounds.The case centers on anUber journey Maughamtook in March 2017, whichcost 6 pounds and 34pence. He wants a courtdeclaration that Ubershould give him a VATinvoice for 1 pound and 6

pence for the journey. Theinvoice would allow him toreclaim the sales tax asthe trip was for businesspurposes.“The sum at issue isobviously trivial,”Maugham said in courtfilings, but the underlyingcase is “of great publicimportance” because ofthe amount of tax thatwould ultimately bepayable if he wins.The case will turn on thequestion of whether Ubershould be classed as thesupplier of cab rides, orwhether its drivers shouldbe. It’s a question at theheart of the so-called “gigeconomy,” wheretechnology companieshave upended traditionalemployment models.“Anyone who gets in anUber is affected by thiscase,” Sachdeva said incourt on Wednesday.Black CabsMaugham’s lawsuit “islargely crowdfunded bythe black cab taxi industry,who have a significantcommercial interest inseeking to alter thecompetitiveness” of Uber’sservices, the ride-hailingfirm said in its court filings.Sachdeva said Maughamis motivated by “goodgovernance” and “wantspeople who ought to paytheir VAT to pay it.”Maugham is “expresslysaying he’s not doing it for

the purpose of the blackcab industry,” Sachdevasaid.An Uber spokeswomandidn’t immediatelycomment.Maugham is one of themost outspoken voicesagainst the U.K.’s loomingexit from the EuropeanUnion. In 2016, he ran acrowdfunding campaignfor a legal challenge over

Prime Minister TheresaMay’s plan to start theformal process for Brexit,an Article 50 notice,without first holding a votein Parliament. Thatcampaign became thePeople’s Challenge, oneof the groups supportingGina Miller in a case thatwent all the way to theSupreme Court -- andwon.

Uber says Maugham’slatest case has no meritand there’s “no need forthis claim to be brought.”Uber argues that HMRevenue & Customs, theU.K. tax authority, is theappropriate agency todecide on its taxpayments, not Maugham.At a hearing Wednesday,Maugham applied for anorder that, if he ends uplosing the case, the mosthe’ll have to pay Uber is20,000 pounds in legalfees. Maugham’sresources “pale incomparison” to Uber, andhe won’t be able tocontinue with the case ifhe doesn’t get the limit, hesaid in filings.Uber says Maughamcould continue the lawsuitwithout the costs orderbecause he could raisemore money from blackcab drivers and others.The ride-hailing giant isalso embroiled in aseparate British courtbattle over theemployment rights of itsdrivers. It’s taking anappeal to the country’s topcourt over whether driversare entitled to theminimum wage andholiday pay.The case is Jolyon TobyDennis Maugham v UberLondon Limited, HighCourt of Justice, Case No.HC-2017-001496.Source Bloomberg

Tax lawyer takes on Uber over VAT

www.lcdc.cab

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Issue 266 - February 2019 23

Our guest speaker this time aroundwas David Kurten (DK) and thissession preceded the AGM.DK was a UKIP member of the GLAbut had resigned earlier during the dayand had given up a press conferencewith C4 news to keep his appointmentwith us.There was apprehension on the partof some members, including this writer,about associating the Club with UKIP.However, true to our apolitical roots, DKwas there as a GLA member primarily.Despite this, the UKIP group on theGLA have stood beside the cab tradesince the last elections.The chairman, Grant Davis (GD)thanked DK for holding the “taxiconference” at City Hall last year, alongwith the other work they have done forus, in particular at Mayor’s Questions.DK informed the meeting that his groupwill be arranging another “taxiconference” at City Hall in June withdetails to follow.DK’s group support the cab tradebecause it is part of the heritage andfabric of London, in addition to the100% access for the capital’s disabledto move around freely. They are concerned, as we are, thatthe trade is under threat from unfaircompetition from PH Apps operating astaxi operations – primarily Uber.However, they place the blame at TFLsdoor as during the last four years, theregulator has failed to deal withtechnological change and those thatabuse it. The situation has changedfrom complementary competitionbetween taxis and PH, to one where

one particular operator has tried todestabilise both markets.DK had thought the 2015 Transportbill would have addressed this failing –cap PH numbers, deal with crossborder hiring, etc – but this did nothappen. Thus, new legislation is stillrequired. The UKIP and Labour GLAgroups raised objections to the Mayorrenewing Uber’s licence last year. Hewas disappointed that the appeal couldtake years to go through the courts,while Uber are allowed to carry on inthe interim.DK has written to the Mayor to ask ifquestions on the cab trade areanswered directly or through anappointed office. The Mayor has nothad the courtesy to respond but DKthought the answer to clearly be thelatter. DK is happy to continue askingquestions on behalf of the cab trade.He was also pleased to hear that the“Knowledge” (KOL) is under discussionto gain City & Guilds accreditation.DK was asked why Val Shawcrosshas “gone over to the other side”. DKdidn’t know her before the last electionsbut sees her as “the Mayor’s man” now.GD will be contacting KOL schoolsand other stakeholders with regard tothe June conference. He felt that themore diverse the participants, thegreater the chance of combating TFL.Asked if TFL will be invited, DK saidthey have been invited.Peter Blake had been asked why TFLdoesn’t promote the KOL and said“why should we”? GD told Brown thatthe KOL and the vehicle define the cabtrade. KOL numbers are at an all-timelow, we have been saddled with a

vehicle that none of us can afford andmore than 2,000 perfectly good taxiswill not have their plate renewed thisyear due to their age.A questioner asked if we couldpromote Sherbet Dab and GS said wewould.DK was asked in regard to the timeenvisaged to sort out the Uber case,could new driver recruitment be frozenin the interim. This is not possible asPH drivers do not have to elect anoperator. However, Matt Newell pointedout that PH drivers have reduced by2000 in number last year.Answering several questions onquestions about the TXe, DK was ofthe opinion that drivers need more helpon the net price and the charging pointfiasco needs sorting out. It washighlighted that the AL report found thatif only 25% of the combined taxi/PHfleet was to go “electric”, there would bea need for 25,000 charging points.It was pointed out that Geely areproducing an electric Volvo for £15,000less than the current TXe price. For thefirst time ever, no new cabs wereregistered in December. DK felt that ifnew cabs are not available, then thereshould be extensions for cabs that are15 years old.A questioner felt that TFL is aregulatory body that doesn’t regulate.The trade have asked TFL and TheMayor what is an “instant hail” on Appsbut all refuse to answer; the sameresponse comes when asking when anApp driver is outside their area. Thesequestions apply to PH Apps as well astaxi Apps. DK offered to ask The Mayorfor answers and Caroline Lucas is also

asking these questions in parliament.GD has asked MyTaxi to say that theirApp jobs are “hails” but they swerveanswering by saying it’s up to TPH.Chapman of TPH then swerved thequestion. With the exception of CMT,the taxi Apps refuse to assist the tradein this matter.Asked if he felt the “powers that be”want to retain the cab trade, DKanswered that he did not know. Thereis no conspiracy but The Mayor’s focusis on promoting walking and cyclingand is always speaking of this “modalshift”. DK felt that while this may haveworked elsewhere, it will not work inLondon.This was also the attitude of Boriswhen he was Mayor. He quoted Boris’cycling guru, Andrew Gillighan” that “wehave to give London cycling, even if itdoesn’t want it”.Asked how many meetings there havebeen between TFL and Uber onautonomous cars, DK said there hadbeen a couple. However, he pointedout that there are five levels ofautonomy; the first four are very limited,while 5 is full automation. Talks so farare on limited autonomy. Asked if therewas a chance of a taxi representativeattending future meetings, DK said yes.The final question was to ask if “taxidemo’s” are positive. DK said he didn’tknow as they weren’t discussed, whichis probably an answer in itself.It was now 8.00pm and so the chairbrought the session to a close bythanking DK for his time. This was aninteresting and frank debate and DKwas warmly applauded for hiscontribution.

Walker on the March...

www.lcdc.cab

A date with Dave

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Issue 266 - February 2019 25

Since our last update,there is basicallynothing to reportregarding HAL and theirmovement on thepricing or futureinfrastructure.Heathrow Airport Ltd(HAL), still believe theyare competitivelypriced. We have supplied themevidence to prove theyare incorrect. It is worthnoting, they haveinstalled 31 FREE TOUSE chargers in theirterminal car parks. Theyare also planning oninstalling FREE TO USEchargers in all theirstaff car parks.

We were promised by theIncome Manager 'I willmake sure that the requestsyou have made areforwarded to the relevantpeople within Heathrow'.This was sent to us onDecember 4th 2018. Wehave heard nothing sincethen.During our meeting onJanuary 3rd 2019, we werepromised by the LandsideManager he would chase upthe Income Managers

request. We received anemail from him stating 'I amstill working on who wouldbe best placed to speakwith'. This was sent onJanuary 22nd 2019. Wechased him again onFebruary 6th 2019. Wehave heard nothing sincethen.

On Monday January 28th2019, we were invited bythe trade orgs to a TfLcompliance meeting withHAL in attendance. HALstated they will not bediscussing the electricchargers as they 'had Brexitto deal with'. We thankedthe trade for inviting us, andwe left the meeting.

Paul and I have beenfighting tirelessly to get tospeak with the relevantdecision makers at HAL.We have come up against,what feels like, a deliberatebrick wall.Thanks to our work, driversare able to leave the southFeeder Park to charge theirvehicle in the AuthorisedVehicle Area (AVA). Thishas become overcrowdedwith drivers now having toqueue to charge. There aremany that have decided it'snot worth the hassle, and

rather than pay the massive32.2p per kWh in the northFeeder Park, are driving theTX on the range extendergenerator. This completelynegates having a ZEC taxi.

HAL are pushing the Greenagenda, and claiming theyare serious about reducingthe emissions in and aroundthe airport. They arespending £6m on upgradingtheir charging infrastructure.Sadly, it would appear, noneof that is being consideredfor the Feeder Park. Wehave spoken to all relevantparties, and estimate itwould cost around £2m toupgrade the north andsouth Feeder Park withenough charges to ensureevery taxi has the ability tocharge whilst waiting. Thecurrent 50kWh chargerscost £25k each, and areable to charge one vehicleat a time. For the samemoney, we could buy 1022kWh chargers, andcharge 20 vehicles at thesame time. We do not needthe expensive 50kWhcharges. The 22kWhchargers we are pushingfor, installed in the northand south Feeder Park,would ensure we would befuture proofed. To charge

the TX from empty it wouldtake around 1hr 15m, andthe Nissan eNV200 Taxi 1hr45m. In the future withbigger battery capacity, theaverage wait time of 2hrs30m would be ample time tofully charge. Simply begincharging in the north park,and finish charging in thesouth park.

We have also been incontact with TfL regardingthe TFP and on streetcharging. There are wellover 1,000 TX's on the roadin London, fighting to use64 dedicated eTaxichargers. Drivers havebeen badly let down by TfL.If you look on TfL's websiteto find locations ofdedicated eTaxi chargepoints, you will notice thishas not been update sinceApril 2018.

The UK are way behindevery other NorthernEuropean country forcharging infrastructure.Germany are buildingdedicated electric chargingAutobahn services, with onein particular having 140chargers. France are wayahead, and are installing75k on street chargers. Thisis more than is currently

required. Their thoughprocess is if we ensurechargers are easilyavailable, the transfer toelectric will be an easydecision. Here in the UK,the Office for LowEmissions Vehiclesannounced on February 5th2019, they have awarded£6m in funding in installing300 charge points foreTaxis. This is a verywelcome announcement,until you read that is 300charge points across theentire UK.

We have set up a newTwitter page, keepingpeople informed of thecharging situation atHeathrow and in London,and can be found at@eTaxiCharging. We havehad many notable andinfluential people showingan interest in the story. Onetweet in particular hasgarnered over 25k views.HAL's unwillingness todiscuss moving forward isnot good news for them. Aswe have said to HAL, weare digging our heels in aswe know we are right.

Brian Nayar and Paul Falcini.

Airport mattersby Mark White

Heathrow Electric Charging update

www.lcdc.cab

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28 Issue 266 - February 2019

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Issue 266 - February 2019 29

Adam D. ElliottVincent House,

99a Station Road, London, E4 7BU

SPECIALIST ACCOUNTANT TO THE LICENSED TAXI TRADE

Tel: 020 8281 0500email: [email protected] / SKYPE: taxitax

Quotax Insurance ispleased to announcethat they have recentlyopened a second officein Dartford, Kent; this isin addition to theircurrent office which ison site at Ascott CabCo in Deptford, SouthEast London.Quotax Insurance is afamily run business thatwas started in 2004 by JohnFosker who was himself aLicensed London TaxiDriver. This specialist TaxiInsurance Brokers is nowowned by John’s 2 sonsDaniel and Paul Fosker.Daniel explains whyDartford has been chosenas the location for theirsecond office; “Over the past 14 yearsQuotax has widened itInsurer Panel so that theycan accommodate almostany London Taxi Driverregardless of their age orexperience. This hascreated growth within thebusiness and weconsequently haveoutgrown our current officesin Deptford.

When the owners of AscottCab Co advised us thatthey were developing a NewBodyshop in Dartford wewere delighted that theyhad ample office space thatwould be a perfect fit for ourgrowing Sales andRenewals Team. ‘’Ascott Cab Co haveinvested a significantamount into their newBodyshop; the newpremises are capable ofcarrying out repairs to thenew electric vehicle as wellas turning around repairs onexisting models faster.Quotax recognises thatthere are a number ofLondon Taxi Drivers wholive around the Dartfordarea and we would behappy to quote for your TaxiInsurance face to face if youare in the vicinity, or ofcourse as usual in theDeptford office.The address of the newoffice is: Quotax Insurance Services Unit 7 Avery Way Questor Dartford KentDA1 1JZ

QUOTAX OPEN DARTFORD OFFICE

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30 Issue 266 - February 2019

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