LONDON (Reuters) - Premium car service Addison Lee plans to increase driver numbers in London by up to a quarter, it said on Friday, just as rival Uber [UBER.UL] is set to lose its license in Britain’s capital.
London’s transport regulator said last Friday it was stripping Uber of its operating license, which will end on Sept. 30, citing problems with the company’s approach to reporting serious criminal offences and background checks.
Its 40,000 drivers can still provide rides with the San Francisco-based company until an appeals process ends, which could take months, but many are concerned for their livelihoods.
Addison Lee, the second biggest private hire operator in London behind Uber, has around 3,600 drivers, which will rise to around 4,450 under the plan.
A further 100 drivers will be added to its Tristar brand, who will also mainly be in London.
“With demand growing and Christmas approaching, Addison Lee wants to add to the pool of talented drivers providing our passengers with a premium service,” Chief Executive Andy Boland said in a statement.
A source familiar with the matter told Reuters the announcement was also linked to competitor Uber’s troubles.
“The campaign was driven not only by Addison Lee’s growth but by the current market situation where Uber drivers are uncertain about the future,” the source said.
Like Uber, Addison Lee treats its drivers as self-employed, entitling them to only basic protections, rather than workers, a category of employment law that also means they would be paid the minimum wage and holiday pay, among other benefits.
Earlier this week, a tribunal ruled that a group of Addison Lee’s drivers were workers. The firm is still considering whether to contest the verdict.
Reporting by Costas Pitas; Editing by Mark Potter