Jurisdiction(s):
United Kingdom

UK Supreme Court hears Uber appeal on whether PHV operators must contract with passengers under LG(MP)A 1976 (England and Wales), with VAT and liability implications

Published on: 07 July 2025

Published by a Law360 reporter

Legal News

Article summary

At the hearing, counsel representing Uber Britannia Ltd argued that local government laws designed to safeguard the public place the duty to discharge a booking on licensed operators—those who accept taxi reservations without themselves providing the ride. Tim Ward KC of Cornerstone Barristers submitted that 'the operator’s terms govern performance of the contract. That remains true even where the operator subcontracts delivery of the booking to another party'. Ward continued that this ensures public protection through 'transparency' about the contracting party, so the customer knows 'who bears legal responsibility' if anything goes awry. 'Once a booking is accepted, the hirer has a contractual remedy against the operator', he said. In July 2023, High Court judge Alison Foster held that operators had to enter contracts with passengers to lawfully operate under the Local Government (Miscellaneous Provisions) Act 1976 (LG(MP)A 1976). However, in July 2024 the Court of Appeal found for operators Veezu Holdings Ltd and Delta Merseyside Ltd, concluding that Judge Foster had wrongly proceeded on the basis that bookings are placed by passengers, which is not invariably so. Accordingly, the appeal succeeded, and operators need not always contract directly with passengers to act lawfully under it...

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