INSIDE UBER’S UK SHAKE-UP: Andrew Brem on VAT pain, Dynamic pricing and cross-border working
- Perry Richardson
- 7 minutes ago
- 5 min read
TaxiPoint spoke exclusively with Uber UK General Manager Andrew Brem about several of the most pressing regulatory and commercial issues facing the taxi and private hire sector. The breaking discussion covers Uber’s move to agent and principal arrangements outside London, the impact of new VAT rules in the capital, the Transport Committee’s focus on cross-border working, and the case for mandatory national licensing standards.
Brem also addresses ongoing debate around dynamic pricing and the pace of electric vehicle adoption following changes to London’s Congestion Charge framework, setting out Uber’s position on how these developments affect drivers, passengers and the wider industry.
Agent/Principal changes to driver terms for drivers outside of London. Lots of talk in the media about this, but is it really a big change for Uber and the industry as a whole?
“Almost every operator outside of London is an Agent, so this is Uber aligning with the entire rest of the industry and the rules set out by the Government. What isn’t changing is that Uber will still offer drivers ‘worker’ status, meaning our drivers have industry leading benefits, including holiday pay. To my knowledge we’re the only operator that automatically enrols drivers into a workplace pension which includes contributions from Uber - the first of its kind in the ride hailing PHV industry. Drivers using Uber have free sickness and injury protection, new parent payments and free Open University courses for them and their families.”
VAT in London: How is it going to impact Uber, drivers and customers?
“I’m deeply disappointed with the new VAT rules for London. As soon as the Budget was announced, I was publicly outspoken about them: there’s no escaping that a VAT hike means higher prices for passengers in the capital, which likely means less work for drivers. Going forward, driver pricing will become exclusive of VAT. This means that drivers who are registered for VAT will receive 20% VAT from Uber on top of the trip payment. Drivers who are not registered for VAT will only receive the trip
payment. We recognise the addition of VAT is a change for London drivers and they might want to take tax advice on the implications for them. It will depend on individual circumstances but many drivers will now likely be better off if they register for VAT and, potentially, access the Flat Rate Scheme. Uber has made arrangements with several independent accounting firms from which drivers can obtain independent tax advice, including whether VAT registration may be suitable for them.”
Transport Committee Inquiry: There’s been lots of focus on ABBA to solve cross-border working concerns. Is this something Uber would support or are there other ways to tackle the concerns raised?
“Fundamentally I believe the right solution to any questions over cross-border travel is to create national standards that are rigorous, fair and applied right across the board, and I think the Government’s decision to introduce this through the Devolution Bill is a really welcome move. People don’t think, let alone travel, within administrative boundaries. If someone is travelling to the station or an airport just outside their local authority border, it’s only sensible that once the driver has dropped a passenger, that they are then able to collect someone from there for their next trip. Drivers shouldn’t be bound by arbitrary restrictions that would come at the expense of drivers’ ability to earn flexibly and the public’s ability to get home safely and affordably.
“There’s also a sustainability point here - nobody wants drivers having dead leg journeys that create unnecessary emissions and mean more cars on the road.”
National Standards: What should they look like? Is it a matter of tweaking what we have or starting from scratch?
“I’m very supportive of mandatory national standards for licensing. I think this is the single most important change that needs to be made to the way the sector is regulated. The public expects safety standards to be the same, no matter where they are in the country, and this feels like a big step forward. On the whole the sector is well regulated but there are some clear areas where I believe we can make progress for drivers and passengers. In particular, I think there’s an important opportunity to bring total consistency on driver background checks, management of safety complaints and the use of CCTV. CCTV is a great example of where there's a chance to make real headway. At the moment drivers say the rules around CCTV in their vehicles are far too confusing, so clarity would be very welcome. All these standards also need to be underpinned by proper national enforcement and a national database that has clarity on licensees, revocations and refusals.”
Dynamic pricing: Why should drivers support a dynamic pricing model rather than a more traditionally static or rigid pricing model seen?
“At its heart, dynamic pricing helps make more trips happen and that creates more opportunities for drivers to earn. With dynamic pricing, fares adjust to specific local conditions - so fares will reflect factors such as how many trips are being requested at a particular moment, the availability of drivers in the area, and where the trip starts and ends. Things like the weather and time of day make a difference.
“Dynamic pricing is there to create the highest likelihood for a trip to happen by making pricing attractive for both riders and for drivers. Since both rider and driver fares adjust, the amount that Uber keeps from the rider fare varies from trip to trip, from virtually zero to almost half - but this quickly averages out. We encourage drivers to look at their weekly summary to see how much Uber kept from their week’s fares - we often find that drivers are pleasantly surprised when they see the average amount over the week’s trips. We’re absolutely clear that the majority of fares go where they belong: in drivers’ pockets.”
Electric Vehicles: How have the changes to Congestion Charging impacted Uber and are you concerned it may slow down the shift to greener vehicles?
“London has really led the way on electrification and that’s in part thanks to bold policies from the Mayor. Almost 40% of Uber’s miles in London are fully electric and giving EV drivers an exemption from the Congestion Charge was a critical factor in London's world-leading electrification progress. It’s been a great thing for the people who live, work and visit the capital. Electric cars mean riders enjoy a smoother, quieter ride and they help cities address air pollution. It’s positive that there is still a 25% discount on the Congestion Charge for EVs, but there’s no escaping that any increase in costs for drivers will likely make it harder to go electric.
“I’m really proud that London is one of Uber’s leading cities for EVs globally and we’ll continue to support drivers to make the switch. Last year, we announced a partnership with the global network of mayors, C40 Cities, to help cities boost access to charging infrastructure. London is one of the priority cities for that partnership, and unlocking access to charging infrastructure is key to making further progress.”
