Driving for Uber Cardiff | Uber Opening Weekend
Like many of us, I’ve been looking forward to Uber’s arrival in Cardiff for a while now. Rumours at the end of last year turned into announcements on twitter and news items on Wales Online, and this weekend Uber finally launches the app in Cardiff.
From the off I wanted to be a driver. I’d heard it was flexible and that the money could be good if you put some hours in. Although, to be honest I can’t promise I wasn’t partly motivated by a fantasy of becoming a modern day version of Robert De Niro’s Travis Bickle from Taxi Driver. But, you know, lighter on those vigilante tendencies and probably driving a Toyota Prius.
I went along to the recruitment at Uber’s offices just outside Cardiff. As I walked through the door I was confronted by a large empty office dotted with groups of men in white shirts and sunglasses engaging in quiet but intense discussion. Most of them seemed to be taxi and private hire drivers who’d come to gain an insight into all the angles of this big new competitor. I heard some championing the app, imploring others to try it out and others voicing scepticism. I heard whispers of the possibility of doubling work. Turning the app on whilst business was slow.
A slight, middle-aged man with braces who was almost drowning in his oversized brown duffel coat approached me and offered, or almost ordered, me to get a coffee from the small kitchen area in the corner. I said I was just trying to find out about Uber so he helpfully pointed me towards a room where Uber employees were explaining the way the company worked.
I sat near the back and listened whilst a bookish looking company representative in his late twenties went through the company’s model for employing drivers. It all sounded very tempting. A £300 cash incentive for joining, a minimum rate of £10 per hour during high demand periods whilst the company finds its feet, and even £1000 if you manage to poach three of your other taxi driver friends from neighbouring firms. A vocal sceptic in the front row put up his hand several times throughout the presentation and quizzed the Uber guy on details. To all of these, a pretty strong and rehearsed response was given.
Yes, Uber takes a 25% cut of all fares. The more you work, the more money you hand over to the company. This is not commonly found in the private hire industry where most providers charge their drivers a flat rate. Uber argues their system will still benefit the driver, as they have access to far more riders, and don’t require the drivers to work scheduled shifts. They can log on to the app as much or as little as they like.
Then the front row sceptic dropped the biggest question, addressing criticism of Uber basing their European operations in the Netherlands, a well-known tax haven for multinational companies.
“So like, does your company pay corporation tax in the UK now or…?”
The Uber man looked at his shoes, looking a bit lost for the first time. He’d definitely been faced with this question before, but hadn’t quite figured out how to answer it yet.
“Well, all of our drivers…”
“Yeah, I know your drivers pay tax on their earnings, but does your company pay tax on their profits?”
This was great. I’m very much in favour of others asking all the tough journalistic questions on my behalf. This guy was helpfully channelling Jeremy Paxman for the afternoon. I could’ve hugged him.
“Look guys, as a company we operate all over the world. We were founded in San Francisco but any global company has to be based somewhere, ours just happens to be based in Amsterdam.”
Well yes, good point. It’s like I always say: any international cocaine smuggling syndicate has to be based somewhere. Mine just happens to be in Bolivia.
“I know that all of our companies operations are legal but I’m not an expert on tax in the UK.”
Yeah but somebody is right? That’s kind of the point.
I don’t think anybody has an issue with a forward thinking company like Uber providing innovation to an industry that may be becoming complacent. The Uber app is undoubtedly easy to use, and utilises technology that makes the whole process of ordering a taxi more efficient for both drivers and riders. All fares are paid through the app, meaning drivers never have to worry about runners, and customers don’t need to stop at cash points. Uber employs licenced drivers in the same way any other private hire firm would, and those drivers are insured similarly.
And our Uber guy is right. It would be idiotic for a company like Uber (and Starbucks, Subway, Facebook, Amazon etc.) not to organise themselves in a manner that results in paying as little corporation tax as possible. A team of accountants who advise their bosses to pay a voluntarily high rate of tax doesn’t tend to last very long. Companies exist to make as much profit as possible, and we can’t expect them to operate with a conscience when it’ll impact the bottom line. Tax just shouldn’t be an optional expense for these companies.
Cardiff will join Bristol, London, Glasgow, Belfast and Manchester as one of Uber’s 15 locations across the UK. It’s unfortunate to see another industry that currently plods along happily contributing tax get dominated by a single company with an unfair advantage. But we’ll all use Uber because it’s frankly a good service for a reasonable price. Just like we all join the queue at Starbucks and I’ll end up ordering Travis Bickle’s army jacket from Amazon.
words MARCUS HUGHES