UPDATED 17:51 EDT / SEPTEMBER 22 2017

INFRA

Uber kicked out of London for not being a ‘fit and proper’ service

In the latest of its many recent setbacks, Uber Technologies Inc. has lost its license to operate within London after the city’s transit authority ruled that it’s not a “fit and proper” car hiring service.

Transport for London had already been considering a massive increase in Uber’s licensing fees, but now the ride-hailing company has lost its license entirely. Uber’s current license is set to expire on Sept. 30, after which the company will no longer be allowed to operate within London.

The transit organization said that Uber does not live up to the same standard imposed on traditional taxi services, which TfL argued poses a safety risk for both drivers and passengers.

“TfL’s regulation of London’s taxi and private hire trades is designed to ensure passenger safety,” TfL said in a statement. “Private hire operators must meet rigorous regulations, and demonstrate to TfL that they do so, in order to operate. TfL must also be satisfied that an operator is fit and proper to hold a licence. TfL has concluded that Uber London Limited is not fit and proper to hold a private hire operator licence. TfL considers that 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.”

According to TfL, Uber failures include how it handles reporting criminal offenses, how it obtains medical certificates,  and how it obtains how Enhanced Disclosure and Barring Service checks. TfL also singled out Uber’s use of its Greyball software to evade local regulators, which also recently landed the company in hot water in Portland, Ore.

In a memo to staff, new Uber Chief Executive Dara Khosrowshahi denied that Uber used Greyball in London and that the company would appeal the decision, during which time it will be able to operate. But he acknowledged that “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, where actions in one part of the world can have serious consequences in another.”

Although TfL listed safety as its primary concern for stripping Uber of its license, the move had been long sought after by London’s traditional taxi companies, which have been struggling to compete with the lower prices of ride-hailing services.

“Transport for London and the Mayor have caved in to a small number of people who want to restrict consumer choice,” said Tom Elvidge, general manager of Uber’s London branch. “We intend to immediately challenge this in the courts.”

Photo: Arran Bee Sunny Bank Holiday Weekend via photopin (license)

A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU