Friday 22 September 2017

Uber loses its license in London

Ride hailing app private hire licence will not be renewed after 30 September. TfL said 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'.

Transport for London on Friday announced that it was not renewing Uber’s licence to operate in the city dealing a sharp blow to the ride hailing app, tens of thousands of UK-based drivers and a sprawling customer base.

In a damning statement, the transport authority said that its regulation of London's taxi and private hire trades is designed to ensure passenger safety.

The California-based company, that was founded just over eight years ago, has been under intense fire from
a growing army of critics in the UK
It said that private hire operators must meet rigorous regulations and that it had concluded that "Uber London Limited is not fit and proper to hold a private hire operator licence".

TfL said that it 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”.

Its concerns relate to Uber’s approach to reporting serious criminal offences and its approach to how medical certificates are obtained, among other things.

The current licence expires on 30 September. Uber can appeal the decision within 21 days and will be able to continue to operate until that appeal process has been exhausted.

TfL announced its decision on Twitter.


TfL has today informed Uber that it will not be issued with a private hire operator licence.

London mayor Sadiq Khan "fully supports" TfL's move to pull Uber's license. Here's his statement:

Uber has responded to Transport for London's announcement that it will not renew the company's licence to operate in the UK capital.

In a statement, Uber said that banning its operations in London would, "show the world that, far from being open, London is closed to innovative companies who bring choice to consumers.” Uber vowed to challenge the ruling. It has 21 days to lodge an appeal.

Tom Elvidge, general manager of Uber in London, said: “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.

“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.

“To defend the livelihoods of all those drivers, and the consumer choice of millions of Londoners who use our app, we intend to immediately challenge this in the courts.

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“Drivers who use Uber are licensed by Transport for London and have been through the same enhanced DBS background checks as black cab drivers."

Uber argued that its technology enhances rather than reduces safety. It said it had always followed TfL rules on reporting serious incidents and worked closely with the Metropolitan Police.

"As we have already told TfL, an independent review has found that ‘greyball’ has never been used or considered in the UK for the purposes cited by TfL," Mr Elvidge added.

Greyball is a controversial technology Uber used in the US that allowed it to operate in markets where it was not licensed by identifying and avoiding local officials. TfL cited it is as one of the reasons for not renewing Uber's licence, along with the company's approach to reporting criminal offences and obtaining medical certificates and obtaining criminal records checks.

The transport authority announced on Friday that it was not renewing Uber’s licence to operate in London, dealing a sharp blow to the ride hailing app, tens of thousands of UK-based drivers and a sprawling customer base. Uber's current licence runs out on 30 September but the company will allowed to continue to operate until the appeals process is concluded.

In a damning statement, the transport authority said that its regulation of London's taxi and private hire trades is designed to ensure passenger safety.

Private hire operators must meet rigorous regulations, and demonstrate that they do so, in order to operate, it said.  It also said that it must be satisfied that an operator is fit and proper to hold a licence.

TfL concluded that Uber does not meet these criteria.

There's no shortage of criticism over TfL's move this morning.

World over, approach to  is a proxy for whether a gvt/city is on the side of the vested interests (the few) or consumers (the many).

The California-based company, that was founded just over eight years ago, has been under intense fire from a growing army of critics in the UK, who claim that it is unfairly skewing competition and that it has not done enough to crack down on incidents of violence involving its drivers.

The Licensed Taxi Drivers Association, which has been one of the most vocal critics of Uber in London, praised Friday's decision and said that TfL had put public safety first.

“Since it first came onto our streets Uber has broken the law, exploited its drivers and refused to take responsibility for the safety of passengers,” Steve McNamara, the General Secretary of the LTDA said.

“We expect Uber will again embark on a spurious legal challenge against the Mayor and TfL, and we will urge the court to uphold this decision. This immoral company has no place on London’s streets”.

The GMB Union dubbed the move as a “historic victory”.

“As a result of sustained pressure from drivers and the public, Uber has suffered yet another defeat - losing its license to operate in London,” Maria Ludkin, GMB’s legal director said.

“No company can be behave like it's above the law, and that includes Uber. No doubt other major cities will be looking at this decision and considering Uber’s future on their own streets,” she added.

London is one of Uber's most established markets and Friday’s decision comes at a critical time for the group. Its already battling a slew of legal cases and challenges in several US states and has been forced to quit countries including Denmark and Hungary.

In June, founder Travis Kananick resigned as from his role as chief executive officer in the face of shareholder outrage over company culture.

Responding to Friday’s decision, Tom Elvidge, general manager of Uber in London, said that drivers and clients would be “astounded”.

“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,” he said.

“To defend the livelihoods of all those drivers, and the consumer choice of millions of Londoners who use our app, we intend to immediately challenge this in the courts.”

He said that drivers who use Uber are licensed by TfL and have been through the same background checks as black cab drivers.

“We have always followed TfL rules on reporting serious incidents and have a dedicated team who work closely with the Metropolitan Police.”

He said that Uber operates in more than 600 cities around the world, including more than 40 towns and cities here in the UK. This ban, Mr Elvidge said, "would show the world that, far from being open, London is closed to innovative companies who bring choice to consumers”.

One of TfL's concerns relates to Uber's use of secret software known as "greyball". The company built it to avoid regulators. Uber on Friday said that "greyball" had never been used or considered in the UK for the purposes cited by TfL.

London Mayor Sadiq Khan was among the supporters of the decision.

“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,” he said. “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.”

Wes Streeting MP, Chair of the All Party Parliamentary Group on Taxis, called TfL’s decision "courageous” and said that it shows that “no company, however big and powerful, will be allowed to flout our laws and regulations or jeopardise Londoner's safety without facing serious consequences”.

“Uber has not shown itself to be a fit and proper operator. It stands accused by the Police of failing to properly handle serious allegations of rape and sexual assault of passengers. It had to be dragged through the courts to recognise its responsibility to provide even the most basic rights and protections to Uber drivers,” he said.

Smaller rival private hire operators welcomed the news too.

One called mytaxi, launched an instant promotion offering half-price rides "to undercut Uber on news that they are not fit and proper to operate".

“We believe that Uber’s business model is based on pumping large amounts of private equity money into maintaining artificially low prices in an attempt to drive out competition, in preparation for raising prices once it has gained a monopoly role in the market,” mytaxi’s UK general manager, Andy Batty, said.



Alternative taxi apps
Fortunately, there are several alternatives to the app, for the times you don't fancy walking, cycling or catching the train, Tube or a bus.

Gett
Gett works in much the same way as Uber, but without the surge pricing, and is available on both iOS and Android. As well as London, you can also use it in Birmingham, Coventry, Edinburgh, Glasgow, Leeds, Liverpool, Manchester and Newcastle.

MyTaxi
MyTaxi, better known as Hailo to many, has already responded to the news by offering 50 per cent off fares. You can also save £10 on your first trip with the code 'myfirstmytaxi'. It's available on both iOS and Android.

Addison Lee
Addison Lee has been around for years, and made huge changes to its service in order to keep up with Uber. Unfortunately, it's widely regarded as a rather expensive alternative. It's also available on both iOS and Android, though you can make bookings on the web too.

Kabbee
Kabbee also offers fixed prices, and claims its minicabs are 65 per cent cheaper than traditional black cabs. It's available on both iOS and Android.

Taxify
Taxify launched in London earlier this month, but had to suspend operations within days. It will be thrilled with the timing of TfL’s announcement, but has a battle of its own in its hands if it's to start operating in the capital again. As well as paying for rides through the app, you can also use cash or a credit or debit card. It’s available on both iOS and Android.

(Source: Independent)

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