Ride-hailing app Uber loses licence to operate in London

Uber's private hire licence will not be renewed after a bombshell decision by TfL on Friday

London's municipal transport authority took commuters by surprise Friday when it rejected Uber's application for a new license to operate, ruling that the ride-sharing company is not a "fit and proper" private vehicle hire operator. Regulators said it denied the license because Uber's "approach and conduct demonstrate a lack of corporate responsibility".

The London mayor, who backed TfL's decision on Friday, said Uber had "let down their drivers and customers" by failing to act as a "fit and proper operator".

Speaking about TfL's decision, the mayor of London, Sadiq Khan said that any anger "should be directed at Uber", and he backs TfL's decision. It has also been attacked by the unions for not upstanding workers' rights.

"By wanting to ban our app from the capital, Transport for London and their chairman the Mayor have given in to a small number of people who want to restrict consumer choice", Uber said in the petition, adding that more than 40,000 licensed drivers would be out of work.

Mr Khan said in a Facebook (NasdaqGS: FB - news) post that he fully supported TfL's decision.

He wrote in a tweet: "Dear London: we r far from flawless but we have 40k licensed drivers and 3.5mm Londoners depending on us".

Ride-hailing app Uber loses licence to operate in London

Over four lakh people have signed a petition calling on Londoners to save Uber, a day after the US-based ride-hailing app firm lost its licence to operate on the streets of the UK's capital. And while he said it's up to United Kingdom authorities to decide how to treat the company there, the soft-spoken Ross made it clear how he feels.

"The truth is that there is a high cost to a bad reputation", he wrote in an internal email to staff.

Uber, which is valued at about US$70 billion (S$95 billion) and whose investors include Goldman Sachs, has faced protests around the world for shaking up long-established taxi markets.

The company has already been forced to leave several countries, including Denmark and Hungary, and has faced regulatory battles in multiple USA states and countries around the world.

Uber is especially popular because its rates are far below London's famous black cabs.

He challenged findings made by TfL, saying Uber drivers were subject to the same checks as black cab drivers, that its technology had enhanced safety, that it followed TfL rules on reporting incidents, and that an independent review had already cleared it over the use of "greyball".




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