London regulators don’t want Uber to operate in the city any more. (Image: Jim Glab)
Uber’s aggressive expansion and some questionable elements of its corporate culture have come back to bite it in the U.K., where London’s transport agency told the company today it will not renew its operating license – which expires September 30.
However, Uber’s app-based car hire service can continue to operate in the British capital during the appeals process, which the company said it will vigorously pursue. That process could take weeks or months. So you can still get your Uber over there for the time being. But maybe not for long. BBC reports that Uber has 21 days to appeal against the agency’s decision. Some 3.5 million passengers and 40,000 drivers use the Uber app in London.
Transport for London, which regulates car hire and taxi services in the city, said that Uber London “is not fit” to hold an operating license. It said Uber’s “approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications.”
In a memo to employees obtained by AP, Uber’s new CEO said the decision was based on past behavior, “The truth is that there is a high cost to a bad reputation…It really matters what people think of us, especially in a global business like ours.”
Uber employs tens of thousands of drivers in London. (Photo: Chris McGinnis)
The agency cited Uber’s alleged failure to report crimes committed by its drivers, and questioned the adequacy of its driver background checks. The agency also cited Uber’s use of “software that could be used to block regulatory bodies from gaining full access to the app and prevent officials from undertaking regulatory or law enforcement duties.”
I’m a big user of Uber and Lyft, but when in London, I tend to use cabs more often than in other cities, mostly because of their ease and ubiquity, so this won’t affect my travel habits much. I’m also a fan of the local Addison Lee app-based car service, beloved my many locals.
However, for many Uber devotees, this could be a big hit.
The company denied all of Transport for London’s allegations, claiming that it uses the same background check standards as the city’s traditional black cab operators and that it has always reported serious incidents involving its drivers. Uber also says hat its technology enhances passenger safety by tracking and recording every trip, and that it has never used the software cited by the agency.
Uber has a history of winning in cases like this… what do you think will happen? Please leave your comments below.
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It’s good that you can afford to ride in real taxis. Before leaving for a recent trip to LAX, I checked online to find out the cost of a ride from the airport to Thousand Oaks (in Ventura County, a a 50 mile trip. The cost of a licensed taxi was quoted as $127.50. The Uber quote was a range of $58 to $67. Uber was half the cost of the taxi so I decided to go for it. My United flight landed at Terminal 8. After ordering my Uber, the app told me to go to the rideshare pickup area on the third level. I took an elevator and quickly found the pickup area. Within two minutes, my ride was there. The car was a very clean 2016 Toyota Corolla. The driver confirmed the destination and we were on our way. The ride was almost perfect. There was some stop and go traffic on the 405 freeway which was certainly not the fault of the driver, An hour after we left, I was at my destination. The fare shown on the Uber screen was a very reasonable $61.30.
Agreed. See a show and be left standing unable to get a black cab or pay their exorbitant fees. Bring it, UBER!
Denmark flatly refused for Uber to come into their country. Thanks for the story Mr. McGinnis.
So, 3.5 million passengers will be using alternatives to Uber (perhaps mostly taxis) and you don’t think the loss of Uber will impact your ability to get a taxi in London? Might want to rethink that.
your comment makes no sense. what are you trying to say
What a bollocks!!! Its actually, “comply with regulation or take your bussines elsewhere”. A bias article or just a clickbait for pagecount?