Two UK minicab operators, Delta Taxis and Veezu, are raising £500,000 to pursue their legal battle against Uber regarding the implementation of VAT on fares outside London. The Supreme Court case, scheduled for July, could significantly impact pricing, adding at least 20% to fares. The operators believe this change would threaten small businesses, raise costs for passengers, and affect many essential journeys. The case highlights a struggle between small local businesses and a larger company pursuing uniformity in pricing policies across the UK.
Delta and Veezu argue that extending VAT to their services would devastate smaller operators, drive up costs for passengers reliant on local taxi services.
Paul McLaughlin, of Delta Taxis, described the case as a 'David v Goliath moment,' highlighting the uphill battle against a giant like Uber.
Veezu's chief legal officer, Nia Cooper, warned that imposing VAT beyond London could make fares unaffordable for vulnerable passengers.
An Uber spokesperson countered that 'there should be consistency throughout the UK to ensure all operators are required to have the same model.'
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