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Uber resumes direct launch plans with new services in Swansea and Stockton Mark Bursa
Uber has restarted launches in UK towns and cities following the collapse of the Local Car scheme late last year. The move represents a major U-turn for the ride-hailing giant, which had previously stopped direct launches into new towns and cities in 2017. Uber instead developed the Local Car scheme following its purchase of dispatch systems provider Autocab in 2020, and even suggested at the time that it might transition to a full platform, without operating its own cars, other than in major cities such as London. But now it has reverted to its original plan. With the announcement that it has launched in Swansea, south Wales, and Stockton, north-east England, one of the towns that was served by a local firm, Skyline Taxis, under the Local Cab scheme. Uber said there was high demand for the service in both locations. In Stockton more than 4,500 local residents were opening the Uber app every week, while the numbers in Swansea were around 4,000. After a roll-out in more than 100 towns, involving more than 70 UK private
Andrew Brem: "By bringing Uber to Stockport and Swansea, we want to help maximise earnings opportunities for drivers"
hire and taxi operators, Uber pulled the plug on Local Cab last December, without giving full reasons. It is believed that driver shortages among partner operators meant Uber jobs were often given a lower priority compared to operators’ regular customers. As expected, Uber has now returned to its original plan of launching its own services in towns and cities where demand justifies a full-scale operation. Before 2017, Uber had launched in 17 UK locations, mainly large cities. It is likely that Uber will concentrate entirely on large urban areas and abandon plans to build a national app that works everywhere – which was the objective of Local Cab. To promote the new launches, Uber has offered
discounted rides, including up to £20 off customers’ next two rides for the first few weeks of operation. Andrew Brem, general manager of Uber UK, said: “We are extremely proud to launch Uber in Stockton and Swansea where we have been seeing increased demand for our services. By bringing Uber to the towns we want to help maximise earnings opportunities for drivers, boost transport options for passengers, and support the local economy.” However, local operators in Swansea are unhappy with the move. Richard Thomas, of Swansea operator Richard’s Taxi Service, told Wales Online the arrival of Uber was a concern for drivers in the city. He said: “I'm disappointed, to be honest, there is no work for us now as it
is, and with them, it’s going to really affect us. The town is too small for Uber, it has done the dirty on the normal drivers. I don't think it will work in Swansea. I hope people will stick by the taxi service. It is a concern for everybody, and a feeling of disappointment among taxi drivers.” Another Swansea operator, Yellow Cabs, which claims to be Swansea’s biggest operator, said it would not be using Uber’s ‘surge pricing’ in Swansea. In a statement, Yellow Cabs owners Dean Roderick and Neil Trainer said their company had its own mobile phone app. “We firmly believe that surge pricing, as employed by some of our new competitors during periods of peak demand, is fundamentally wrong. It's unfair to our customers to be subjected to exorbitant price increases, sometimes up to 400%, simply because its busy. At Yellow Cabs, we pride ourselves on transparent and consistent pricing.” Uber’s plans to launch in major towns look set to continue throughout 2024. The company has recently been granted a license to operate in Hull, and services are expected to start in the East Yorkshire city in the coming months.
Bolt launches flexible pension scheme for private hire drivers Ride-hailing operator Bolt is to launch a pension scheme for its 65,000 UK-registered private hire vehicle drivers from May 1, 2024. Through the scheme, which is provided by Aviva, drivers will be able to contribute 5% of their fees from every completed trip into their pension pot, to which Bolt will add a further 3% contribution. This allows drivers to remain inde-
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pendent contractors and keep their job flexibility while still having access to all the benefits of a pension, such as financial security in retirement. The scheme will be structured as a private group personal pension (GPP) plan, through which Bolt’s self-employed drivers will hold a contract directly with Aviva. Bolt will cover all joining costs for drivers who invest in the scheme and drivers will also
have the option to invest in a Sharia fund. Under the terms of the scheme, the qualifying earnings criteria typically applied to workers’ pensions, which is currently set at a minimum of £120 and maximum of £967 per week, has been removed. This means that drivers will be eligible for the 8% pension contribution for each completed journey, regardless of how frequently they use the Bolt platform.
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