The Court of Appeal handed down judgment this week, in DELTA Merseyside and Veezu holdings v Uber Britannia [2024] EWCA Civ 802, overturning a High Court ruling last July that operators must enter as principal into a contract with passengers.
Intervening in the High Court case, private hire operators warned passengers would have to pay VAT on journeys, potentially raising fares by 20%.
Both DELTA and Veezu use an app to manage bookings, acting as intermediary between driver and passenger. Drivers pay DELTA a fee, called a ‘settle’, for putting them in touch with a customer. Veezu also provides services for school runs and medical transportation.
Lord Justice Lewison, giving the main judgment, said: ‘A booking may not necessarily specify any journey; or even be made for a journey at all.
‘A vehicle may be booked simply to be on stand-by. It is thus plain (and indeed is now common ground) that the declaration made by the judge is inappropriate. It assumes that the booking is made by "the passenger", which is not necessarily the case, and it assumes that the contract is one "to provide the journey" which is also not necessarily the case.’
Layla Barke-Jones, dispute resolution partner at Aaron & Partners, representing Delta Taxis, said the decision was ‘a victory for the taxi industry and all those who depend on it.
‘This frequently includes the disabled, elderly and low-income households. This was a landmark case, the result of which could have had a terrible impact on the lives of so many people—not to mention the administrative burden for operators.’
The case does not affect London, where different taxi regulations apply.
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