UK Supreme Court Upholds Private Hire Rules, Dismissing Uber Appeal

The UK Supreme Court has dismissed Uber Britannia Limited's appeal regarding the regulatory regime for private hire vehicles (PHVs) outside London and Plymouth, ruling that operators are not required to enter into a direct contract for hire with passengers when accepting bookings. This decision upholds the interpretation of the Local Government (Miscellaneous Provisions) Act 1976, allowing operators to act as intermediaries or agents without forming principal contracts, preserving the traditional flexibility in the PHV sector. The court emphasized that the triple licensing system for operators, drivers, and vehicles protects customers, and rejected Uber's argument that the Act imposes a contractual obligation upon booking acceptance. The ruling also has tax implications, as private-hire operators outside London are not subject to a 20% VAT charge on their profit margins, reversing a previous High Court ruling in Uber’s favor. This outcome follows a similar case involving the Estonian company Bolt, which successfully challenged HMRC's VAT demands, highlighting ongoing legal scrutiny over taxation in the ride-hailing industry. Overall, the Supreme Court's decision marks a significant victory for private hire operators against efforts to standardize contracts and tax liabilities more stringently.