Big setback for Uber, cab aggregator loses licence to operate in London as TfL launches crackdown

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New Delhi | Updated: September 22, 2017 5:10:47 PM

London's transport regulator on Friday stripped Uber of its licence to operate from the end of the month, affecting over 40,000 drivers in a huge blow to the taxi app.

Transport for London, fit and proper, TfL launches crackdown, Sadiq Khan, Uber licence revokedThe regulator said that Uber’s licence was not renewed because its “approach and conduct demonstrate a lack of corporate responsibility.”(Reuters)

In a big setback for Uber, Transport for London (TfL) has said that it will not reissue US-based cab aggregator’s private hire licence within the city. The regulator, in its statement, has cited the company’s operations were not “fit and proper” and has time until September 30 until its licence runs out, according to The Guardian. However, Uber said it will challenge the decision of London’s transport authority in the court.

The regulator said that Uber’s licence was not renewed because its “approach and conduct demonstrate a lack of corporate responsibility.” The London’s transport regulator has issues relating to Uber’s reporting of serious criminal offences, obtaining medical certificates and driver background checks, the report said.

The body also raised concerns over the use of Greyball– a software that can be used to block regulatory bodies from gaining full access to its app. The Mayor of London, Sadiq Khan has also fully supported the revoking of Uber’s licence. He said all companies needed to “play by the rules”.

“I want London to be at the forefront of innovation and new technology and to be a natural home for exciting new companies that help Londoners by providing a better and more affordable service. However, all companies in London must play by the rules and adhere to the high standards we expect –particularly when it comes to the safety of customers. Providing an innovative service must not be at the expense of customer safety and security,” Khan was quoted as saying by The Guardian.

Criticising the regulator, Uber said the decision would “show the world that, far from being open, London is closed to innovative companies”. “3.5 million Londoners who use our app, and more than 40,000 licensed drivers who rely on Uber to make a living, will be astounded by this decision,” the company’s statement reads.

 

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