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Leading Insurers threaten Uber with CMA investigation over new document system EXCLUSIVE Mark Bursa Leading insurers are threatening Uber with a referral to the Competition & Markets Authority after the ride-hailing operator introduced a new insurance system that excludes a number of the biggest companies. Uber has introduced a system called Instadoc, which it says is designed to streamline and simplify the documentation approval process for drivers. The Instadoc system will be in place by the end of the year, and Uber said the move would enable it to receive drivers’ insurance certificates directly from the providers. In an email to drivers, Uber wrote: “This means that from December 1, 2021 onwards, we’ll only be accepting insurance certificates obtained from one of the Instadoc-approved insurance providers.” But leading insurers including Plan and Aviva are not on the approved list – only the following eight firms: u A corn Insurance / Haven Insurance (Motorcade) u Antillo u Freeway u Headway/Nelson/DCL u INSHUR u Mulsanne (Fare Cover) u Walsingham Motor Insurance Limited u Zego Uber has told drivers that if their policy is not
an said: “We are proud of Instadoc, an industryfrom one of the approved providers, they must first digital verification process which allows switch to one of them at next renewal, with a cut insurance firms to send digital insurance docu-off of November 30, 2021. Divers that do not comments directly to Uber, saving drivers time while ply will not be able to drive for Uber after that date. helping to prevent fraud and ensure Plan Insurance’s head of busithat every trip is insured.” ness development Daniel Severin said She claimed the list of eight compathe move would effectively reduce the nies covered “the vast majority” of Uber available market in London for driver drivers – a claim disputed by the major insurance for firms not on the list by insurers not on the list. However, she up to 60%. did say the list would be reviewed. “How would you act if your business “The current insurance provider panwas about to lose 60% of the market it el, which will be reviewed in 2022, was operates in, due to a closed marketselected to ensure that drivers have a place you are not being allowed into?” Daniel Severin great range of cost-effective and conSeverin asked. venient options, and includes some of the largest Insurers not on the list are now in discussions insurers of PHVs in the UK who cover the vast mawith trade and government bodies including the jority of Uber drivers. We believe that Instadoc is an Association of British Insurers (ABI), the Finanimportant innovation for the industry that should cial Conduct Authority (FCA) and, crucially, the be adopted by all operators.” Competition and Markets Authority (CMA) – which Severin said the excluded insurers had written recently gave Uber the green light to buy dispatch to the GMB Union, which earlier this year signed a systems provider Autocab. deal with Uber to represent its workers, and the unSeverin said: “Insurers are speaking to the region had raised further concerns. ulators to understand if this amounts to a non-au“I understand from our conversation that the thorised body influencing a purchasing decision. GMB already have drivers saying that the insurers They have specifically asked the CMA whether this on the Uber list will not insurer them; will not cover initiative will create an unfair and closed market their wife, son or daughter; and they are all at least among insurers.” 25% more expensive than their current supplier. He added: “As a result, Uber may be on the end Severin suggested that the checks be carried out of a backlash from the insurance industry if they by TfL via the Motor Insurance Database, though continue with their plans, and it might not all be Uber has apparently dismissed this idea, and does smooth sailing.” not consider the MID suitable to perform the task. Uber defended the move. An Uber spokeswom-
London taxi numbers fall to lowest level in 40 years The effects of the Coronavirus pandemic on taxi and private hire fleets has been highlighted in new DfT data. In England, the numbers of licensed PHVs dropped 16% to 192,700 compared to 2020. There was a larger decrease in PHVs in London compared to England outside of London: 19.2% and 14.6% respectively. There are now 77,500 PHVs in London – down from almost 100,000 pre-pandemic. The licenced taxi fleet in England fell 14% to 58,300 in 2021, with an 8.1% fall outside London. London black cabs have taken the hardest hit, falling to their lowest level in 40 years. Over the past year, there has been a 29% fall in the number of black cabs operating on London’s roads to just 13,884 taxis – down more than 5,000 on pre-pandemic levels - despite the travelling public being scared to use buses and tube trains though the crisis. The number of licensed PHV operators decreased by 5.6% to 15,100 from the previous year, and is 8.6% lower than the peak in PHV operators at 16,500 in 2009. PHV operators declined by 7.9% to 2,000 operators in London and decreased by 5.2% to 13,100 operators in the rest of England. There were 343,800 taxi and PHV driver licences in England, 20,900 (5.7%) fewer than in 2020. Of the total licences, 64% were PHV-only licences, 13% were taxi-only licences and 22% were dual taxi/PHV licences. —Mark Bursa
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JULY 2021
