Uber, another company sucking money out of the UK.

jgmcdee · Jul 24, 2015

Lord Bracknell said:
The PCO functions in London only. Outside London, Uber seem to be approaching the licensing issue differently. They have, for example, applied for an operator's licence in Brighton, but it is arguable that they may not meet the requirements of the Brighton licensing system.

Haven't examined it exhaustively but it does appear that they are requiring private hire licenses in the current cities that provide them (http://driveuberuki.com/faq has links for each city) and their requirements are broadly similar.

I'd be surprised if they could obtain an operator's license in any given city without agreeing to abide by whatever regulations the city has already laid down.

symyjym · Jul 24, 2015

spring hall convert said:
I'm not disagreeing with you but the vast majority of the mainstream media does exactly the same.

I wouldn't say exactly the same. He does it with wild eyes and tries to intimidate people with his quirky use of the English language.

Lord Bracknell · Jul 24, 2015

jgmcdee said:
Haven't examined it exhaustively but it does appear that they are requiring private hire licenses in the current cities that provide them (http://driveuberuki.com/faq has links for each city) and their requirements are broadly similar.

I'd be surprised if they could obtain an operator's license in any given city without agreeing to abide by whatever regulations the city has already laid down.

Like you, I haven't explored all of the small print, but one thing I've noticed is that private hire driver licensing conditions in Birmingham require drivers to be contracted to just a single operator (for example Uber), whereas in Manchester this restriction isn't mentioned. That could make a significant difference to the attractiveness of a deal with Uber, from the point of view of a potential driver.

Seagull kimchi · Jul 24, 2015

So who or what is propping up this company so that they can run at a massive loss and not pay tax while taking business from tax paying servants?

BigGully · Jul 24, 2015

Seagull kimchi said:
So who or what is propping up this company so that they can run at a massive loss and not pay tax while taking business from tax paying servants?

Nothing wrong with propping up a business and making a massive loss, ask Tony Bloom.

Chinman3000 · Jul 24, 2015

I for one really hope Uber comes to the south coast.

I had to pay £45 recently for a cab from Brighton to Worthing, which is a complete rip-off for a 25 minute trip.

Driving a taxi is very low skilled work, and the prices Uber charge are alot more commensurate with the effort required.

Black Cab drivers dont like it? Simple - lower your prices.

The tax issues are for the goverment to resolve.

Frampler · Jul 24, 2015

So much ignorance of how business and taxes operate on this thread. The reasons to be concerned by Uber relate to safety and competence, since Uber drivers require substantially less training and certification than black cab drivers. But on the bright side, I've yet to have an Uber driver try to convince me to vote UKIP or explain their plethora of prejudices, and I have saved a substantial amount of money when travelling with them.

The idea that you should choose black cabs over Uber for tax reasons is laughable - black cab drivers are not exactly know for their socialist principles! Uber has its European base in Amsterdam, and a business based in the Netherlands can operate without restriction anywhere in the EU (freedom of movement applies to companies too). The UK Government has introduced a diverted profits tax of 25%, which applies to business like Google, Apple and Amazon as well as Uber, and means that these business will have to pay tax if they are making profits on their sales in the UK. In response this move, Amazon has started logging all its sales in the UK, rather than at its EU base in Luxembourg. But the Russell Brands of this world are still rehashing the same 'boycott this company because they don't pay their taxes' arguments from 5 years ago, and blithely ignoring key details like the fact that corporation tax is only due on profits.

El Presidente · Jul 24, 2015

Uber don't publish their accounts as they are not yet listed on the NYSE.

My gut reaction is that they are not making any profits though, if they follow in the likes of other tech start ups. Their marketing costs are likely to far exceed net revenues.

No profits = no tax.

Dick Knights Mumm · Jul 24, 2015

Frampler said:
The UK Government has introduced a diverted profits tax of 25%, which applies to business like Google, Apple and Amazon as well as Uber, and means that these business will have to pay tax if they are making profits on their sales in the UK. In response this move, Amazon has started logging all its sales in the UK, rather than at its EU base in Luxembourg. .

Really ? That is good news. No doubt the clever tax people are working on how that can be avoided, but that is good to hear. Is it implemented now ?

Wrong-Direction · Jul 24, 2015

Same old, billions of pounds getting swept under the carpet by companies but people focus on the poor people the media portray as monsters

Seagull kimchi · Jul 24, 2015

BigGully said:
Nothing wrong with propping up a business and making a massive loss, ask Tony Bloom.

BHA don't pay tax!!! Bloody hell, now I'm really worried.

The Spanish · Jul 24, 2015

Chinman3000 said:
I for one really hope Uber comes to the south coast.

I had to pay £45 recently for a cab from Brighton to Worthing, which is a complete rip-off for a 25 minute trip.

Driving a taxi is very low skilled work, and the prices Uber charge are alot more commensurate with the effort required.

Black Cab drivers dont like it? Simple - lower your prices.

The tax issues are for the goverment to resolve.

What should the fare be from Brighton to Worthing? And why?

Seagull kimchi · Jul 24, 2015

Still, who can prop up these losses whilst allowing a company to undercut their competition and avoid paying the taxes that benefits us all? Smells bad to me, but I'm just a normal bloke who hasn't played the cheating (sorry) "business" game.

£1.99 · Jul 24, 2015

Jim D said:
I wouldn't hold your breath as this is the same city that got the Tuk-Tuks taken off the streets.

Would love to see Tuk-Tuks return to Brighton. Why were they taken off the streets?

BiffyBoy · Jul 24, 2015

StonehamPark said:
To be fair, Nibble's spot on here.

I've just looked at the returns and it appears to me as though Uber have not filed anything in the UK in the past 2 years.

That being said, the self-employed Uber staff will be filing their own UK taxes, however the 20%(?) that Uber makes per-fare, is sent out to their head offices/accounts in Amsterdam.

So I'm guessing the issue Nibble might have here, is that Uber should be filing the tax from the 20% remainder of the fare in the UK?

I think Bozza was spot on. With the free promo code rides & operating costs, I think it's highly unlikely Uber have made any profits in the UK! Based on this I would say they have probably lost a fortune so far www.telegraph.co.uk/finance/newsbys...ber-is-losing-more-money-than-its-making.html

Not saying that won't change, but can't really see the argument about corporation tax until they make some money

meeching gull · Jul 24, 2015

Chinman3000 said:
I for one really hope Uber comes to the south coast.

I had to pay £45 recently for a cab from Brighton to Worthing, which is a complete rip-off for a 25 minute trip.

The tax issues are for the goverment to resolve.

Should never use Brighton cabs always use a cab from your own area might have to wait a bit
but usually cheaper than the brighton lot

Lord Bracknell · Jul 24, 2015

£1.99 said:
Would love to see Tuk-Tuks return to Brighton. Why were they taken off the streets?

They didn't meet the vehicle specification required for taxis or private hire vehicles in Brighton - so they got themselves licensed by the Traffic Commissioner as buses. They then failed to operate in accordance with the licensing conditions and the Traffic Commissioner effectively withdrew the licence.

Geestar · Jul 24, 2015

Would be good to get a black cab....all I hear is 'not going that way'. I always thought the service was to take me the way I wanted.

Westdene Wonder · Jul 24, 2015

Chinman3000 said:
I for one really hope Uber comes to the south coast.

I had to pay £45 recently for a cab from Brighton to Worthing, which is a complete rip-off for a 25 minute trip.

Driving a taxi is very low skilled work, and the prices Uber charge are alot more commensurate with the effort required.

Black Cab drivers dont like it? Simple - lower your prices.

The tax issues are for the goverment to resolve.

Having competition from Uber will help to keep increases down,cant be bad

Herr Tubthumper · Jul 24, 2015

£1.99 said:
Would love to see Tuk-Tuks return to Brighton. Why were they taken off the streets?

Taxi driving union, or whatever it is, ganged up on them.

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