London cab drivers consider $1.64B suit against Uber

Some of London’s cab drivers are considering legal action against Uber due to the loss of earnings they have suffered since the ride-hailing company entered the city.

The Licensed Taxi Drivers' Association (LTDA) of London confirmed to Reuters that it is in the preliminary stages of seeking legal advice from law firm Mishcon de Reya for a potential class action lawsuit.

According to a Sky News report, the estimated 25,000 cab drivers of the LTDA in London have been suffering from lost earnings of about 10,000 pounds over the course of the last five years when Uber began its operations in the UK city. The class action lawsuit against Uber could be for a total of $1.64 billion.

Once Uber won back its interim license in June, the LTDA began to consider legal options. Uber’s license had been revoked by the Transport for London it in September for failing to conduct thorough background checks on its drivers.

"The justice system has failed Londoners today and let an aggressive multinational corporation win," said general secretary of the LTDA Steve McNamara in a statement to Sky News.

"Uber is not a fit and proper operator and the LTDA will be consulting its lawyers as to how we can hold it to account and keep streets safe for Londoners".

Around the London area, Uber has 3.5 million users and 45,000 self-employed drivers, compared to LTDA’s 25,000 cabbies.

According to McNamara, the grounds for a possible class actions lawsuit are still being evaluated as the LTDA explores all of its options.

This “two-tier transporation” system has raised questions about environmental friendliness and space availibility on the city streets, according to Managing Director of TJM Europe, LLP Scott Shellady.

"They [Uber] don't have the knowledge that black cabbies do," Shellady told FOX Business on Tuesday morning during "Varney & Co."