LONDON, Sept 22 (Reuters) – London deemedUber unfit to run a taxi service on Friday and stripped it of its licence to operatefrom the end of next week in a major blow to the U.S.
firm and 3.5 million users in one of the world’s wealthiest cities.
Thecapital’s transport regulator said the Silicon Valley technology giant’sapproach and conduct was not fit and proper to hold a private vehicle hirelicence and it would not be renewed when it expires on Sept. 30.
Uber,which has 40,000 drivers working in the capital, said it would contest thedecision. Regulator Transportfor London (TfL) said it would let Uber operateuntil the appeals process is exhausted, which could take months.
“Uber’sapproach and conduct demonstrate a lack of corporate responsibility in relationto a number of issues which have potential public safety and securityimplications,” TfL said.
Specifically,TfL cited Uber’s approach to reporting serious criminal offences, backgroundchecks on drivers and software called Greyball that could be used to blockregulators from gaining full access to the app.
“Transportfor London and the Mayor have caved in to a small number of people who want torestrict consumer choice,” said Tom Elvidge, Uber’s general manager in London.“We intend to
immediately challenge this in the courts.”
Anonline petition against the decision had gathered nearly 200,000 signatures inthe space of four hours.
The loss of the licence comes after atumultuous few months for Uber, including a string of scandals involvingallegations of sexism and bullying at the San Francisco-based start-up that
forced out former CEO and co-founder Travis Kalanick.
Uber,which is valued at about $70 billion and whose investors include Goldman Sachs,has faced protests around the world for shaking up long-established taximarkets.
The taxiapp has also been forced to quit several countries, including Denmark andHungary, and faced regulatory battles in multiple U.S. states and around theworld.
London’straditional black cab drivers have attacked Uber, saying it has undercut safetyrules and threatened their livelihoods. Uber has been criticised by unions andlawmakers too and been embroiled in legal battles over workers’ rights.
Londonpolice also complained in a letter in April that Uber was either notdisclosing, or taking too long, to report serious crimes including sexualassaults and this put the public at risk.
Of the154 allegations of rape or sexual assault made to police in London betweenFebruary 2015 and February 2016 in which the suspect was a taxi driver, 32concerned Uber, according to the capital’s police force.
Ubersaid on Friday its drivers passed the same rigorous checks as black cabdrivers, it has always followed TfL’s rules
on reporting serious incidents and it had a dedicated team that worked closelywith London’s police.
LondonMayor Sadiq Khan, a Labour politician who has criticised Uber in the past, saidhe backed the decision to reject its application for a new licence.
“Itwould be wrong if TfL continued to license Uber if there is any way that thiscould pose a threat to Londoners’ safety and security,” he said.
Drivers of London’s black cabs, who havesnarled up the city’s streets in protest at the app over the last few years, welcomedFriday’s decision.
“Theirstandards are not up to scratch,” said 71-year-old Walt Burrows, who has drivena black cab for 39 years. “The black cab is an iconic part of London. What youget with a black
cab is a metered fare and you know you’re safe.”
Uber islikely to come under more fire next week when it appears in court to appeal averdict that granted two of its drivers rights such as the minimum wage, thelatest “gig economy” battle between firms lauding the flexibility enjoyed by self-employeddrivers and unions accusing them of exploitation.
Uberhas, however, announced a series of changes over the last few months to improveconditions for its drivers, including the introduction of in-app tipping andplans to increase some
fees.
AlongsideUber’s drivers, some of London’s 3.5 million registered users expressed concernas to how TfL’s decision would affect their lives.
“Itwill definitely impact my life,” said 43-year-old event planner Rimi Char, whousers the app at least once a week. “I have got used to the ease and costeffectiveness of using Uber
and I’ve always had positive experiences.”
One ofUber’s British competitors in London, Addison Lee, is also awaiting a decisionfrom TfL about a longer-term licence. The company declined to comment onFriday.
