Uber taxis banned from London, 40000 cars may stop on 30th September

7 years ago - Published in Finance, Fundamental Analysis

Uber is to be sensationally stripped of its licence to operate in London in a huge blow to the ride-hailing firm. The firm, which is used by 3.5 million people and 40,000 drivers in London, said the licence decision "would show the world that, far from being open, London is closed to innovative companies".

A Transport for London (TfL) spokesman 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."

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

Uber said its users and drivers would be “astounded” by TfL’s decision and accused the transport body and the Mayor of “caving in” to a small number of critics. The firm confirmed it would “immediately” challenge the decision in the courts.

The California-based company, 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. 

However the technology giant’s expulsion by TfL will delight opponents, including the black cab trade, who have criticised its safety record.  

Others have raised concerns over the San Francisco company’s business methods and argue it has contributed to worsening traffic congestion on London’s streets. Uber’s lawyers will now pore over the decision which is almost certain to be challenged in a lengthy courtroom battle.

TfL ruled that Uber was “not fit and proper” to hold a private hire licence and had shown a “lack of corporate responsibility” in relation to public safety.

Its licence is currently due to expire next Saturday, September 30. The app firm has 21 days to appeal the decision. However, they can continue to operate on London’s streets while the legal process is exhausted.

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