Londoners could be set for another ride sharing price hike after Uber lost a court battle which will force them to start charging VAT on rides.
Last February, the High Court ruled that Uber is liable to pay VAT in the UK.
The High Court upheld the ruling in December, meaning operators now need to enter a contract with passengers as opposed to previously entering into a relationship with them.
Industry sources told The Telegraph the tax would inevitably be passed on to customers, raising prices by up to 20 per cent.
Transport for London (TfL) said it was working “with all operators to ensure they satisfy the requirements to hold a private operator licence”.