TfL under fire over ‘hidden subsidies’ for Uber Thames Clipper services
Transport for London (TfL) is tonight under pressure after a complaint was lodged with the Competition and Markets Authority (CMA) over “hidden subsidies” for the Uber Thames Clipper ferry service.
Romford MP Andrew Rosindell and London Assembly Member Keith Prince have written to the CMA saying that the firm is being given “an unfair and dominant competitive advantage” by the transport network.
That is because unlike other ferry services, Uber Thames Clipper does not have to pay pier landing fears.
In their letter, which City PM has seen, the two politicians said: “Ultimately, one TfL licenced scheduled Thames passenger boat operator is made to pay expensive pier landing fees at TfL owned piers and another one is not (Uber Thames Clippers), despite them both targeting the same sightseeing and tourist passengers throughout the day.
“This unfair anti-competitive behaviour should be investigated and tackled”, they added.
The decision to waive landing fees came due to the fact that Thames Clipper was deemed by TfL to be running a vital commuter service.
However, the letter, which was first reported by the Telegraph, points out that the company does not pay landing fees even when it is operating services outside of commuter hours.
London Mayor Sadiq Khan has said that Uber will begin paying landing fees after passenger numbers hit a certain level.
However, Rosindell and Prince said that they had not been told what this level was despite numerous attempts.
They added that maritime minister Robert Courts had also sought clarity from City Hall on the measure, to no avail.
Thames Clipper was launched in 1999 by Sean Collins and Alan Woods. It was taken over by O2 owner AEG in 2006, and announced a partnership with Uber last year. It currently has a fleet of 19 vessels.
When services began, it carried just 80 passengers a day, but last year Thames Clipper served over 4m passengers.
A spokesman for Uber Boat by Thames Clippers told the Telegraph that it worked to a different pier fee structure “to take into account the significant costs of operating to over 20 piers at times of the day/year when demand is low and the commitment to operating services when it is not profitable to do so”.
“Uber does not operate the River Bus service. Thames Clippers is responsible for operating the boats and Uber aims to use its app to drive additional passengers onto the service.
“The brand partnership between Uber and Thames Clippers to form Uber Boat by Thames Clippers enhances the way people can travel around the city.”
A spokesman for TfL said: “We’re aiming for 80pc of all trips in London to be made by foot, by bike or using public transport, and the river has an important role to play in this. We have different arrangements for the licensing of commuter river services, as these have more potential to replace car-based journeys, than leisure services.
“Commuter services are required to run a regular and frequent timetabled provision all year round from early morning to late in the evening, whereas river tours and charters are seasonal and operate mostly outside of commuter hours.
“In addition, commuter services run from piers from Putney in the west through to Woolwich and others in the east, and not just in the more profitable central London section.”
A CMA spokesperson said: “We have received the letter sent on behalf of Andrew Rosindell MP and Keith Prince AM and will be considering it carefully.”