Uber Loses London License
Uber will not get a new license to operate in London after repeated violations of security requirements.
Uber was stripped of its license to carry passengers in London on Monday for the second time in two years, pending an appeal «fault patterns» in the field of safety and security.
Unauthorized drivers could upload their photos to other people’s accounts, so on more than 14,000 trips a non-advertised driver picked up passengers, Transport for London reported.
The regulator said that the taxi application was not licensed, despite the fact that it made a number of positive changes to its activities..
Uber lost its license in 2017 but received two renewals, the last of which expired on Sunday.
The company will file an appeal and can proceed with this process.
If the appeal is unsuccessful, Uber drivers will go to rival firms such as Bolt and Kapten. «There will be competition that will fill this gap rather quickly», – says City Index market analyst Fiona Cincotta.
A London regulator found that laid off or suspended drivers were able to create Uber accounts and carry passengers. In one case, a driver was able to continue working for Uber, despite the fact that his private rental license was revoked after he was warned for distributing obscene images of children..
Helen Chapman, Director of Licensing, Regulation and Charging at TfL, said: «While we acknowledge that Uber has made improvements, it is unacceptable for Uber to allow passengers to board with potentially unlicensed and uninsured drivers.».
London Mayor Sadiq Khan said: «I know this decision may be unpopular with Uber users, but their safety is paramount. There are rules to keep Londoners safe».
Uber is going to appeal this decision, so the magistrate will have to decide whether Uber will get a license in London or not..
The magistrate’s decision may take weeks or months, and unless the court decides otherwise, Uber will retain its license during this period.
Uber believes the regulator’s decision was «unusual and wrong». The aggregator said it has checked every driver in London over the past two months and has strengthened its business processes..
Dara Khosrowshahi’s boss tweeted: «We understand that we are approached with a high standard, as it should be. But this TfL decision is simply wrong. Over the past 2 years, we have revolutionized the way we work in London».
Uber said in a public statement: «Any failure to operate in London, as well as publicity regarding any such restriction or non-renewal, will adversely affect our business, income and operating results..
We cannot predict whether a TfL decision or future regulatory decisions or legislation in other jurisdictions might push or induce other authorities to take similar action, even if we operate under the terms of an existing license or permit.».
Business lobbying group CBI says Uber’s popularity has shown customers value the service
«We encourage both parties to continue the dialogue to determine what changes are needed to ensure that Uber customers can continue to use the service in the long term.», – Chief UK policy director Matthew Fell stated.
But Unite, which believes Uber unfairly took jobs from the drivers of the official black cab cabs, welcomed the news..
«At the heart of Uber is the drive to lower standards and create a race to survive, which is not in the best interest of professional drivers or customers.», – said Jim Kelly, chairman of Unite London and East Cab.