Uber will be forced to change its business model in London to contract directly with passengers who book, after a high court ruling that will affect all private hire operators in the capital.
The judgment was hailed by unions for giving both drivers and passengers more protection, by underscoring previous legal rulings that drivers are workers with rights, and making firms responsible once bookings are accepted.
The ruling could indirectly lead to a price rise, with Uber and others now liable for VAT, which could add up to 20% more to the cost of a trip.
The high court case was brought by Uber after supreme court judges suggested, in the case this year where it ruled that drivers were workers and not contractors, that Uber could not be viewed simply as an agent.
