Uber loses licence to operate in London

The regulator said the taxi app was not "fit and proper" as a licence holder, despite having made a number of positive changes to its operations.

Uber initially lost its licence in 2017 but was granted two extensions, the most recent of which expires on Monday.

The firm will appeal and can continue to operate during that process.

London is one of Uber's top five markets globally and it has about 45,000 drivers in the city. Overall, there are 126,000 licensed private hire and black cabs in the capital.
 

If its appeal is unsuccessful, some think Uber drivers would move over to rival ride-sharing firms such as Bolt and Kapten."There would be competition that would fill that void quite quickly," Fiona Cincotta, a market analyst at City Index told the BBC.

Why won't Uber get a new licence?

TfL said it had identified a "pattern of failures" in London that placed passenger safety at risk.

These included a change to Uber's systems which allowed unauthorised drivers to upload their photos to other Uber driver accounts.

It meant there were at least 14,000 fraudulent trips in London in late 2018 and early 2019, TfL said.

The regulator also found dismissed or suspended drivers had been able to create Uber accounts and carry passengers. In one example, a driver was able to continue working for Uber, despite the fact his private hire licence had been revoked after he was cautioned for distributing indecent images of children.

• Uber's paradox: Gig work app traps and frees its drivers
• What do drivers think of Uber?

Helen Chapman, director of licensing at TfL, said: "While we recognise Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured."

London Mayor Sadiq Khan said: "I know this decision may be unpopular with Uber users, but their safety is the paramount concern. Regulations are there to keep Londoners safe."

'I feel safe using Uber'

Donna Stevens says her experiences of using Uber in London have "always been positive".

In her job as a carer she often works late, so regularly uses the service. "The drivers are friendly, courteous and professional. I can't afford to get a metered taxi."

She says that if Uber were to go, she would probably have to go back to using public transport late at night, which does not make her feel safe.

However, another reader, Kay, says she would not be sad to see Uber go.

"I complained a couple of months ago about a driver who made me feel so uncomfortable I abandoned the ride and walked home in the dark at 11 o'clock at night instead of staying in his cab."

She says Uber gave her a £5 credit but did not apologise. "How is it OK to employ drivers that make women feel unsafe?" she says.

Is this the end of Uber in London?

Uber lovers in London, fear not! The company's cars will not suddenly disappear from the capital's streets.

Uber is going to appeal against this decision so a magistrate will have to decide whether Uber is fit to hold a licence in London, or not.

A decision from a magistrates court could take weeks or months and unless the court decides otherwise, Uber will retain its licence during this period too.

When TfL decided not to renew Uber's licence in 2017, the company addressed some of the issues raised by TfL back then and then a magistrate later granted Uber a new licence.

On the face of it TfL is standing tough against perceived failings by Uber. But in effect it is letting the courts decide, at a later date, whether Uber should have a licence, or not.

What does Uber say?

Uber said the decision was "extraordinary and wrong". It said it had audited every driver in London over the past two months and strengthened its processes.

Boss Dara Khosrowshahi tweeted: "We understand we're held to a high bar, as we should be. But this TfL decision is just wrong. Over the last 2 years we have fundamentally changed how we operate in London."

Read more (...)