UPDATED 15:28 EDT / SEPTEMBER 29 2017

INFRA

Uber CEO will meet with London’s transport head to ‘make things right’

It has been barely a month since Dara Khosrowshahi joined Uber Technologies Inc. as the company’s new chief executive, and so far the job does not look like it is getting any easier. Last week, Uber lost its operating license for London, and now Khosrowshahi will be meeting with the city’s transport head in an attempt to keep Uber from getting kicked out of one of the busiest transport hubs in the world.

Transport for London, or TfL, the local government body responsible for overseeing transit in London, has been at odds with Uber for some time, partly fueled by resistance from the city’s traditional taxi companies. Earlier this month, a coalition of unions and lawmakers gathered more than 106,000 signatures for a petition that told Uber to “respect workers’ rights or get out of London.”

The group asked TfL to not renew Uber’s license in London, saying that Uber was not a “fit and proper operator,” and TfL eventually agreed, effectively banning the ride-hailing service from the city once its current license expires on Sept. 30. Tom Elvidge, general manager of Uber’s London branch, took a harsh stance on the move, saying that TfL and London’s mayor “caved in to a small number of people who want to restrict consumer choice.” Meanwhile, U.K. Prime Minister Theresa May said that the a blanket ban against Uber was “disproportionate,” but she agreed that safety concerns should be addressed.

Khosrowshahi took a more diplomatic approach to TfL’s decision, saying in an internal memo to employees: “While the impulse may be to say that this is unfair, one of the lessons I’ve learned over time is that change comes from self-reflection. So it’s worth examining how we got here. The truth is that there is a high cost to a bad reputation.”

An Uber spokesperson said today that Khosrowshahi will meet with TfL Commissioner Mike Brown on Tuesday in an effort to smooth over relationships between the company and local regulators. “Our new CEO is looking forward to meeting with the commissioner next week,” Uber’s spokesperson said. “We want to work with London to make things right.”

Uber is no stranger to getting booted from a city due to local resistance. In 2016 the company pulled out of Austin, Texas, after local regulators passed a law that would require the company to fingerprint its drivers. Austin lawmakers argued that the measure would better ensure passenger safety, but Uber said that fingerprinting was more expensive and less effective than the background checking system it already used.

With its current approach to London’s officials, Uber may have learned from some of its mistakes in Austin. The company ran a controversial campaign in Austin that bombarded citizens with flyers and automated calls encouraging them to vote against the fingerprinting law. The campaign instead had the opposite effect, turning public opinion against the company.

Uber rival Lyft Inc. also pulled out of Austin as a result of the fingerprinting law, and both companies only recently returned to the city after Texas passed statewide ride-hailing company regulations that overruled Austin’s local law. Unfortunately, Uber cannot rely on something similar happening in London.

Photo: automobileitalia/Flickr

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