Uber: London Taxi Scene Needed Competition

May 27, 2014 01:39 PM EDT | Jordan Ecarma

Responding to blasts of criticism from London cab drivers, Uber said its ride-sharing service has brought a renewed sense of competition to "an industry that hasn't evolved in years."

In a blog post published Tuesday, Uber reiterated that its app-enabled rides are fully licensed in London as well as safe and convenient.

"London cabbies are iconic--arguably the best taxis in the world. However, there is room for all and there is room for more and better," Uber said in the blog post. "This competition benefits riders and drivers, and raises the quality and service levels offered by the industry."

For their part, cabbies have been arguing that Uber has sidestepped regulations on taxis. The service, which is available in 36 countries so far, is officially licensed by London transport authorities as a private hire operator. While Uber and Transport for London say the app doesn't count as a meter, critics say it should.

Cabbies are concerned that Uber will become a monopoly.

"If they decimate the cab trade and minicab trade in London and just have one tier of 'taxi'--which is actually just a car--and that's the Uber tier, then what the public will get is price surges," Grant Davis of the trade group the London Cab Drivers' Club, told CNET. "When it's raining, the cab you used to get home from the club will have doubled in price, but you have to pay what you have to pay because no one's left standing."

Uber has been protested in various cities, including Paris, and London cabbies plan to join by blocking city streets on June 11, CNET reported.

Adding fuel to the fire, the cab app Hailo, which is used by about 60 percent of London cabs, applied last week for a license to offer rides as well, inspiring angry cab drivers to storm a London dispatch office. 

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