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November 26, 2019

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Uber loses London license over safety

London鈥檚 transport authority yesterday refused to renew an operating licence for the ride-hailing giant Uber because of safety and security concerns.

鈥淭ransport for London has concluded that it will not grant Uber London Limited a new private hire operator鈥檚 licence in response to its latest application,鈥 it said in a statement.

The rejection is the latest setback to the firm鈥檚 operations in London, which have been targeted by protests from traditional black cab drivers to previous licence suspensions.

In September, Uber was granted a two-month extension to its licence following the expiry of a previous 15-month agreement. The extension was conditional on passenger safety improvements.

But TfL said yesterday there was a 鈥減attern of failures,鈥 including the use of unauthorized drivers on other drivers鈥 accounts, allowing them to pick up passengers.

The transport authority said this happened at least 14,000 times, endangering users, as it invalidated insurance. Some trips took place with unlicensed, suspended or dismissed drivers.

TfL said it recognized steps the company had taken to address such issues but was concerned about the ease with which its checks and balances could be manipulated.

Uber vowed to appeal the decision, which is called 鈥渆xtraordinary and wrong.鈥

The process is likely to include court action and could drag on for months, allowing its roughly 45,000 drivers in London to keep operating in the meantime, despite the expiry of Uber鈥檚 licence yesterday.

Legislation allows Uber 21 days to appeal and the company can continue to operate during this time.

Helen Chapman, director of licensing, regulation and charging from TfL, said safety was its 鈥渁bsolute top priority鈥 and the infringements were 鈥渦nacceptable.鈥

鈥淚t is clearly concerning that these issues arose, but it is also concerning that we cannot be confident that similar issues won鈥檛 happen again in future,鈥 she added.

Mayor of London Sadiq Khan said he backed the decision. He added he recognizes the decision would be unpopular but that companies need to play by the rules.

鈥淜eeping Londoners safe is my absolute No. 1 priority and TfL have identified a pattern of failure by Uber that has directly put passengers鈥 safety at risk,鈥 he said.

Uber said it would introduce measures such as a 鈥渄iscrimination button鈥 enabling drivers and riders to report abuse, enhanced safety training for drivers and a direct link to the emergency services.


 

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