Plymouth Taxi Industry Clashes with Uber Over Pricing

A major taxi firm in Plymouth has accused Uber of engaging in predatory pricing, alleging that the ride-hailing giant is drastically undercutting local businesses and posing a threat to the city’s private hire industry. The management of Need-a-cab? has expressed concerns to Plymouth City Council, arguing that Uber’s pricing model could destabilize the market and lead to a monopoly.

Similar concerns have been raised in other parts of the UK, such as Norwich, where local firms have debated whether Uber’s arrival represents convenience or unfair competition. This pattern of disputes highlights the challenges traditional taxi services face when competing against app-based ride-hailing platforms.

The company’s directors, Huw Isaac and David McIntosh, claim that Uber is charging significantly lower fares than established private hire firms. They highlighted an example where a journey from Devonport Road to Royal Parade costs £7.10 with Need-a-cab?, whereas Uber reportedly offers the same trip for as little as £1.67. The taxi firm asserts that such pricing tactics could drive local businesses out of operation.

David McIntosh remarked:

"We are happy with competition but not happy about unfair and possibly illegal methods of competing."

Uber, which was granted a private hire vehicle operator’s licence by Plymouth City Council last year, has defended its presence in the city. The company stated that it is filling an unmet demand for transportation services and providing more choices for passengers. While Uber did not directly comment on pricing concerns, it noted that its fare structure varies and that introductory promotions may apply in certain regions. According to its website, the average cost of an 11-minute ride in Plymouth is approximately £10.

Plymouth City Council, in response to Need-a-cab?’s complaints, clarified that it does not regulate fares for private hire vehicles, as it does for hackney carriages. A council representative stated that concerns regarding alleged predatory pricing should be directed to the Competition and Markets Authority (CMA).

A council spokesperson stated:

"Any concerns about predatory pricing queries should be made to the Competitions and Markets Authority (CMA)."

Uber and another app-based company, Smartzi, were both approved to operate in Plymouth last year. Uber was initially permitted to onboard 160 drivers, a figure the company has since reached. Unlike traditional taxis, Uber operates via an app-based system where passengers book and pay for rides in advance. The platform offers driver ratings, trip tracking, and emergency support features.

The management of Need-a-cab? has emphasized that they welcome competition but argue that Uber’s pricing strategy discourages new entrants into the trade and threatens existing businesses. They insist that the local taxi industry must be protected against unfair practices to ensure long-term stability.