Taxi drivers’ warning over cheap Uber fares

Uber drivers in Blackpool are charging as little as 36p for a two mile journey, it has been claimed, with fears raised such low fares mean cabbies will not be able to sustain their livelihoods.

Driver Neil Charnock, who is campaigning for laws around how taxis are licensed to be tightened up, said the low fares were even cheaper than using a bus for some journeys,

He warned: “This company cannot and should not be allowed to cause such damage to fragile economies like Blackpool.”

But a spokesperson for Uber said it was usual practice to offer discounts to passengers making their first few journeys when Uber launched in a new town.

The operator was granted a licence by Blackpool Council in August although some Uber drivers licensed by other local authorities had already been plying for trade in the resort.

Mr Charnock said people including from the council and Blackpool Transport would “be astounded to hear of the fares Uber are charging.”

He added: “I have heard of fares such as 36p from the town centre to the  Hampton by Hilton Hotel near the Pleasure Beach,  and 9p from Fleetwood to the college at Ashfield Road.

 “Students are hiring Ubers to college as they are cheaper than buses. If the young people of today are choosing rideshare apps ahead of local buses, this will mean significantly more congestion, journey times and ultimately losses to Blackpool Transport.”

Bill Lewtas, secretary of the Blackpool Taxi Association, said Uber was using a loss leader pricing strategy to attract passengers but warned their prices would rise.

He said: “Uber is a private hire company and their negative impact is mainly on Blackpool’s private hire companies. They are currently running a loss lead marketing strategy and it will end soon.

“But they have created an impact and we are grateful that Chris Webb MP is pushing for a change in the rules through the government.

“We do have concerns about  Blackpool Council’s lack of enforcement and the fact they awarded an operators license to Uber, without the normal process of discussions at the public protection sub-committee. Consideration should have been given to the various complaints made in the months leading up to the application being made.

“When Uber bring in their surge prices, they charge considerably more than us. We have local knowledge so we know where we are going and we never drive the wrong way down one-way streets. Our view is that local cabs are safer.”

A spokesperson for Uber said its fares would not always remain so low and that it was supporting Blackpool’s economy by meeting unmet demand.

The spokesperson said: “It is very common that Uber offers new passengers discounts on their first few trips when launching in a new city.

“These are very much time limited and promotional offers such as £5 off your first trip, which may well explain the 36p trip. It is definitely not us claiming that prices will stay that low, it is a one-off introductory offer. “

The discounts are funded by Uber with the driver being paid the normal fare.

Uber said launching in Blackpool gave passengers greater transport options, with drivers abiding by the same regulations as all other private hire operators “to ensure a safe trip home”.

Blackpool Council said Uber had met all the criteria to be eligible for an operators licence which is why the application did not need to go before the public protection sub-committee.