Addison Lee considers job cuts as Uber and Hailo encroach on London minicab market

The taxi wars raging in the capital could trigger scores of job cuts at Addison Lee as the London firm attempts to adapt to a new world dominated by upstart tech rivals including Uber and Hailo.

Sources claim Addison Lee is putting nearly 90 jobs under threat to make cuts to its control room and maintenance operations, the Evening Standard understands.

The minicab firm said that exact numbers have not been confirmed.

The move is the first sign of the true impact of US tech giant Uber’s on companies’ operations as Londoners increasingly use their smartphones to books cabs.

The rapidly changing market has sparked a full review of Addison Lee’s structure.

In December, Addison Lee boss Liam Griffin accused Transport for London of “letting down” black taxi drivers – although his company does not run black cabs – and had “bottled” it by allowing Uber to operate in the capital.

The GMB union said it is watching the situation “carefully” and meeting with the minicab firm today.

In an internal letter seen by the Standard, Griffin said: “It has become clear that there is a business need to make organisational changes in the workforce, in order to become more efficient and in recognition that staffing levels may be too high in some teams.”

Addison Lee said the jobs are “non-customer facing” back office roles and are part of a wider review of the business as it aims to build up its digital arm.

The minicab firm, bought by private equity firm Carlyle Group in April 2013, this week posted an 11% rise in annual revenue to £196.6m and a 55% jump in profits to £33.5 million in filings to Companies House.

Carlyle, which took a £17.2 million dividend, attempted to sell the business last year.