Uber loses licence to operate in London

22/9/2017

Transport for London (TfL) has said Uber will not be issued a new private hire licence after the current licence expires on 30th September.  They have concluded that Uber was not fit and proper to hold a London private hire operator licence.

It said it took the decision on the grounds of “public safety and security implications”. TfL pointed to Uber’s approach to: reporting serious criminal offences; obtaining medical certificates; and background checks into drivers.  Uber’s use of secret software – called “Greyball” – which could be used to block regulators from gaining full access to the app, was also cited by TfL in its decision although Uber say they have never used the software in the UK. Opponents of the firm claim it causes gridlocked roads and does not do enough to regulate its drivers.

Confirming it would appeal against the decision, Uber said it showed the world “far from being open, London is closed to innovative companies”. In a statement, Uber said: “Transport for London and the mayor have caved in to a small number of people who want to restrict consumer choice.” Uber’s general manager in London Tom Elvidge said: “To defend the livelihoods of all those drivers, and the consumer choice of millions of Londoners who use our app, we intend to immediately challenge this in the courts.”

Uber operate in over 600 cities around the globe, 40 of which are in the UK. In London Some 3.5 million passengers and 40 thousand drivers use the Uber app.

In London, despite protests from angry taxi drivers, the company has had a relatively easy ride until now. But TfL have been moved to action by a flurry bad publicity surrounding its corporate culture, its lax attitude to checks on its drivers and the way its treats them.

Mayor of London Sadiq Khan said in a statement: “I fully support TfL’s decision – it would be wrong if TfL continued to license Uber if there is any way that this could pose a threat to Londoners’ safety and security. Any operator of private hire services in London needs to play by the rules.”

Labour MP Wes Streeting, chairman of the All Party Parliamentary Group on Taxis, said: “This is a courageous decision by the mayor and Transport for London. It finally draws a line in the sand to make it clear that no company, however big and powerful, will be allowed to flout our laws and regulations or jeopardise Londoners’ safety without facing serious consequences.”

However, David Leam, of London First which campaigns for business in the capital, said London needed to be open to new ideas, business and services. “This will be seen as a Luddite decision by millions of Londoners and international visitors who use Uber, and will also hit London’s reputation as a global tech hub.”

James Farrar, chairman of the Independent Workers’ Union of Great Britain’s United Private Hire Drivers branch, said: “This is a devastating blow for 30,000 Londoners who now face losing their job and being saddled with unmanageable vehicle-related debt. To strip Uber of its licence after five years of laissez-faire regulation is a testament to a systemic failure at TfL.”

Uber has 21 days to appeal TfL’s decision. TfL says Uber can “continue to operate until any appeal processes have been exhausted”.