London could be giving Uber (Privately Traded) the boot, according to Transport for London. According to the group, Uber Technologies Inc. has officially lost its license to operate in London. Specifically, Uber’s private-hire operator’s license will not be renewed after it ends on September 30th.
Uber announced that it was looking to challenge the decision in court.
With a population of over 8 million and 40,000 registered Uber drivers in the city, London represents a significant market for the freelance transport company. London is the biggest market in the UK, causing a massive hit to Uber. Uber only became aware of the decision one minute before it was publicly Tweeted, according to a Guido Fawkes reporter.
In an official response, Uber stated, “”By wanting to ban our app from the capital, Transport for London and the Mayor have caved in to a small number of people who want to restrict consumer choice. If this decision stands, it will put more than 40,000 licensed drivers out of work and deprive Londoners of a convenient and affordable form of transport”.
The reasoning behind the decision was that the company was not ‘fit and proper’ to hold the license, according to Transport for London. Specifically, the group mentioned Uber’s secret ‘Greyball’ software and its use to dodge transport officials. Also mentioned was the company’s approach to medical and safety checks for drivers and its approach to reporting serious driver offenses.
However, this doesn’t mean that the company will immediately cease operation in the city. Instead, it will have 21 days to appeal the decision, free to operate in the city in the meantime.
Mayor Sadiq Khan stated that despite wanting London to be at the forefront of new technologies and companies, he wanted the city to be safe first and foremost.
“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,” said Khan.
“Any operator of private hire services in London needs to play by the rules,” he added.
The company had been issued a four-month license back in May in order to buy more time to determine whether the company should have the right to operate in London. The city has also heard complaints from politicians, former Uber drivers, and the black-cab driver industry.
In another recent decision, UK decided to classify Uber drivers as workers instead of self-employed, which by law would entitle the workers to a minimum wage and holiday pay. According to the most recent accounts, Uber UK reported $2.5 million in profit for 2015.
Featured Image: twitter
