‘Unfit’ Uber stripped of London licence

US firm to contest decision, will continue to operate until appeals process is exhausted


Reuters September 23, 2017
PHOTO: REUTERS

LONDON: London deemed Uber unfit to run a taxi service on Friday and stripped it of its licence to operate from the end of next week in a major blow to the US firm and 3.5 million users in one of the world’s wealthiest cities.

The capital’s transport regulator said the Silicon Valley technology giant’s approach and conduct was not fit and proper to hold a private vehicle hire licence and it would not be renewed when it expires on September 30.

Uber, which has 40,000 drivers working in the capital, said it would contest the decision. Regulator Transport for London (TfL) said it would let Uber operate until the appeals process is exhausted, which could take months.

“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,” TfL said.

Specifically, TfL cited Uber’s approach to reporting serious criminal offences, background checks on drivers and software called Greyball that could be used to block regulators from gaining full access to the app.

Safety threat

The loss of the licence comes after a tumultuous few months for Uber, including a string of scandals involving allegations 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 taxi markets. The taxi app has also been forced to quit several countries.

Published in The Express Tribune, September 23rd, 2017.

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