Sometimes when you’re late to the party, there aren’t enough chicken nuggets and cocktail sausages left to go around. It’s a lesson taxi-hailing app Karhoo has learned the hard way, today announcing the closure of its service as it looks “at the next steps for the business.” Launched in London in May, Karhoo aimed to take on Uber, as well as black cab equivalents Gett and Hailo, with an all-encompassing platform covering black cabs, minicabs and executive cars — it also boasted a pre-booking option, which Uber didn’t have at the time.
Over the summer, Karhoo began expanding into new UK cities and a couple of months ago, claimed it was “reaping the benefits of the second mover advantage,” with more registered drivers than Uber and user growth that outpaced the ride-hailing goliath’s early days. Ultimately, though, it seems that didn’t translate into getting enough bums on seats, or at least receiving enough commission to keep the service afloat.
With offices in several corners of the world, Karhoo had plans to expand into the US and Singapore. Despite a trial in NYC, these plans were never fully realized, and Karhoo has now run out of cash. The service reportedly secured around $250 million in funding, but after exhausting that pot of gold, has been scrambling for an emergency backer to step in until as late as yesterday. Karhoo’s own statement explains that many of its circa 200 staff “have worked unpaid for the last six weeks in an effort to get the business to a better place.”
The news that Karhoo is shutting down its service, closing its offices and probably shedding the majority of its staff might seen a bit sudden, but we’ve heard rumblings that all was not well before. A few months ago, we received word of internal strife, high staff turnover, and Karhoo not paying suppliers and partners, among other “unprofessional behavior.” We couldn’t verify the claims, but there may’ve been some truth in them.
We’ve tried reaching out to Karhoo to get some background on the closure, but the press email address is already dead. So much for that second mover advantage.
A United trade demonstration. Called by the UCG, supported by the LCDC, RMT, Suburban Allience, ITA, DDD, MM and #SaveTaxi.
Let’s not forget, that our biggest representative org said they wouldn’t be supporting the demo, on advise from their political advisors….
Unfortunately, the met police did everything in their power to disrupt the effect of the demo in Whitehall. They arrived early, put cones and ribbons down the middle of the road and diverge cabs away from Whitehall.
Four days prior to our protest, wearing masks, carrying weapons and daubing graffiti over public buildings, the police allowed the anti-austerity anonymous group to run a mock for many hours. A peaceful demo by London Taxis drivers and they decide to use heavy handed tactics.
This is the respect we get, for playing by the rules and letting the authorities know our plans in advance….
A second protest venue was called off out of respect for the police, who promised we could hold our protest for 90 minutes. But it seems the police decided to break their word and tried to disperse vehicles before they got anywhere near Whitehall. Drivers arriving from Milbank were diverted over Lambeth Bridge, Taxis were kettles in Horse Guards Road
Double crossed
Just after 2 pm more cones were strategically placed, cutting off access from Parliament Square. At the same time this aggressive Traffic a Cop (recognise him*) and his team were diverting unsuspecting drivers away from entering Whitehall from Trafalgar Square.
*Same aggressive traffic cop trying to divert cabs away from the demo.
After Marshals complained, the police relented and within minutes, the demonstrators achieved complete gridlock.
Outside the gates of Downing Street, Trevor Merralls, vice chair of the UCG gave an emotional speech, before leading a delegation down to number 10, where a letter was handed in, calling for an inquiry into TfL.
We were informed that the tactics employed by the police had actually backfired as the knock on effect from Taxis redirected, had caused chaos reaching back to Kensington in the West and the City in the east.
Many drivers are now calling for future demos to be unofficial with multiple hits at various locations.
Perhaps it’s time to hit all of London’s bridges at the same time.
This isn’t the first time the police have broken their agreement to let drivers demonstrate peacefully.
We had a similar incident on 10th of February when aggressive traffic cops stopped Knowledge Students from joining their future colleagues in Whitehall.
One student was arrested and although the gold commander had him de-arrested, saying he would hear no more about the incident, he received a summons two months later.
The case is still going on and scheduled to be heard in January, almost a year after the incident.
Members from the GLA turned up and spoke to the organisers in front of Downing Street.
Support again from the Cabstop and Knowledge students
We have been informed that the Met Police have agreed to meet with the UCG to talk about the continued plying for hire and the use of fog lights by PHV drivers
One thing that saddened me yesterday was the amount of Taxis I saw with jobs in as I made my way in towards the protest.
These drivers who carried on working, have no right to complain about the situation the trade finds itself in.
Station ranks were well attended and so was Heathrow.
Is it now time to take the gloves off ?
With thanks to Artemis and Mandy : Stronger together #SaveTaxi
Least we forget
London’s finest will be back inforce this coming Sunday. Poppy Cabs will operating a free service, taking our veterans to and from the remembrance day services.
At the going down of the sun, and in the morning….we will remember them.
A group of food takeaway couriers working for Deliveroo are taking legal steps in the UK to gain union recognition and workers’ rights.
It comes after two drivers for Uber won a tribunal case in which they argued they were workers not contractors.
If the couriers win, it could encourage thousands of those working in the so-called gig economy to seek to unionise and receive rights such as paid leave.
Deliveroo said it was committed to providing “great opportunities”.
The company, which provides a delivery service on behalf of thousands of restaurants across the country, classes its riders as self-employed “independent contractors”. This means they have no workers’ rights such as paid holiday and the right to the minimum wage.
Billy Shannon, a rider who works for Deliveroo in Camden, north London, said riders receive £3.75 per delivery.
He added: “We don’t get an hourly fee, so that means at times when there aren’t that many deliveries and it is not that busy, we can be waiting for up to an hour for a delivery without getting paid a penny.”
The BBC has seen a letter from the Independent Workers Union of Great Britain (IWGB), on behalf of riders in north London with the help of the personal injury lawyers serving in Clinton, asking Deliveroo for recognition for the union to bargain on behalf of the group.
Collective bargaining laws in the UK apply to those classed as workers and employees, but not independent contractors.
‘Faintly ridiculous’
IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers.
He added: “If Deliveroo ignores or rejects our request, then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with us.
“To do this the tribunal will also have to decide that the Deliveroo drivers are workers and not independent contractors, which means they will also be entitled to paid holiday, minimum wage, and all the other rights associated with this employment status.”
In October, two drivers for Uber, the company behind a taxi-hailing app, won a case at a London employment tribunal which gave them the right to be classed as workers rather than self-employed independent contractors.
The ruling said: “The notion that Uber in London is a mosaic of 30,000 small businesses linked by a common ‘platform’ is to our mind faintly ridiculous.”
The action being taken by IWGB is another, and potentially faster, way of achieving worker status for riders than a full employment tribunal.
If it succeeds it could benefit the 8,000 riders working with Deliveroo in the UK.
Challenge to ‘gig economy’
Dr Moyer-Lee said the legal action being taken by IWGB was challenging the basis of the so-called gig economy.
“Gig economy employers like Uber and Deliveroo claim their workers don’t work for them but are rather independent contractors running their own businesses,” he added.
“We say they do work for them and as such should be entitled to paid holidays, minimum wage, and collective bargaining rights.”
They way people work is changing and the Uber and Deliveroo model does suit some who want to work flexible hours, but there are concerns.
Image copyrightREUTERSImage captionThere are around 8,000 Deliveroo couriers in the UK
Shadow business secretary Clive Lewis MP said: “If Deliveroo and Uber want to bring forward these new technological platforms, then they have to ask themselves is their business model sustainable if they have to exploit their workers to be able to make themselves viable.”
In a statement, Deliveroo told the BBC that it was “committed to providing great opportunities for UK riders, with the flexible work riders value, and a payment model which is fair, rewarding and better matches riders’ time with customers’ orders.”
Meanwhile, Uber has said it will appeal against the London tribunal ruling that it had acted unlawfully.
The Department for Business said it had launched a review of working practices.
The inquiry by Matthew Taylor, chief executive of the RSA (Royal Society for the Encouragement of Arts, Manufactures and Commerce) will look at job security, pay and workers’ rights.
A spokesman said: “The government is committed to building an economy that works for all. We want to ensure our employment rules are up to date to reflect new ways of working.”
London taxi drivers descended on Whitehall to call for a public inquiry into Transport for London (TfL).
The black cab drivers say TfL is to blame for “unarguable failures” in congestion, pollution and regulation of private hire firms like Uber.
The taxis brought Whitehall to a standstill while a lone drummer, drummed his way down the queues of black cabs.
A few people milled about between the cars but most of the drivers stayed in their vehicles occassionally honking their horns.
United Cabbies Group (UCG), which organised the protest, claimed London transport chiefs had “failed to act in compliance with public law on many issues.”
A spokesperson for the UCG said: “The traffic chaos and air pollution in London resembles that of a third world city, not that of a world leading city.”
They added: “The regulatory public body responsible for this unarguable failure is Transport for London.
“TFL has an annual budget in excess of £11 billion of taxpayers’ money yet has not been accountable for its failures in its duty of care to protect the public.
“The structure of TFL and its lack of accountability for the unarguable failures is something which should be properly scrutinized by a statutory public inquiry.”
The protest is expected to continue until 4pm and is causing traffic chaos with some black cabs apologising for delays.
TfL has said that buses serving Parliament Square, Whitehall and Trafalgar Square are delayed by up to 40 minutes due to the demonstration.
The Strand and Westminster Bridge are shut westbound.
Peter Heaton-Jones the Conservative MP for North Devon tweeted a picture of the protest from his office window.
Peter Blake, TfL’s Director of Service Operations, said: “This protest will cause unnecessary disruption to people trying to go about their business.
“We urge the organisers to call it off. The mayor has recently launched a comprehensive Taxi and Private Hire Action Plan that is aimed at driving up standards and improving safety.
“We will work with all industry stakeholders to help shape the implementation of the action plan.”
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