Uber experiencing the downside to market disruption

Disrupters tend to polarise opinion. Depending on which side of the fence you fall the chances are you will either love what is happening as a consequence of their actions or hate it.

Take Uber for example. After riding into town on a wave of really positive PR, award wins and some impressive take up figures it was only a matter of time before the locals started taking them seriously. What begins with a few individuals having a moan about how they are struggling to compete with the new kids on the block can soon – when harnessed as a collective – force a more granular investigation into working practices and whether competition is being played out on  level playing field. And if you come up against an inherently protective culture then it won’t be long before one or both of the parties resorts to legals.

In July of this year it was reported that Uber was facing legal action from British drivers for breaching UK employment rights’ legislation. Leigh Day Solicitors are acting on the case on behalf of the GMB union. But it is not just London’s taxi drivers who have been manning the barricades. Uber has run into trouble In Germany, France and Spain which has prompted them to submit complaints to the European Union. This month Brussels is going to start an investigation into the Uber concept - the fulcrum of which is a decision on whether the business should be treated as transport service or a digital offering. Different European Laws will of course apply to each of the platforms.   

Without doubt the Uber case is going to be interesting – powerful competing interests threaded through a morass of local and European regulatory, employment and competition law. It’s also going to be costly. Which brings me to the end of my journey. If you are a business minded, commercial lawyer it is your duty to seek out commerce and industry’s disrupters and give them your business card. If someone is already briefing them then go and find the competition. At some stage war is going to break out and being in the right place at the right time is going to the bring the type of challenge and reward that fuels high flying careers.

A silver lining for consumers is that London's Black cabs have recently introduced off peak tariffs in a bid to woo back the city's taxi users. Don't be surprised if this turns into a fight 'til the death. 

Jon Paul Hanrahan is an Associate Director at Douglas Scott Legal Recruitment. He advises Greater Manchester's Corporate and Commercial Solicitors on next steps and moves into the region's Top 200 law firms.