Uber Loses License to Operate in London
Transport for London denies a new license for Uber to operate in London after failing safety requirements.
BBC reported on Monday that the taxi app has been deemed “not ‘fit and proper’ as a license holder” by the Transport for London (TfL).
Transport for London is an organization that is responsible for meeting the transport strategy and commitments created by London’s Mayor, Sadiq Khan. The TfL runs day-to-day operations for the city’s public transport network and manages London's main roads, including deciding which transportation companies are licensed to operate in the city. Uber has made multiple changes to operations since losing their license originally in 2017, but after two extensions, their renewal has been denied. BBC also claims that London falls within Uber’s top five markets around the globe with around 45,000 drivers in the city alone.
The TfL is claiming that a “pattern of failures” has dictated this decision. According to a BBC report, the TfL “found dismissed or suspended drivers had been able to create Uber accounts and carry passengers.”
The director of licensing for the TfL, Helen Chapman, wrapped up the verdict by stating: "While we recognize Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured."
The question this operation opens up is what other authorities could potentially do.
The Uber website claims their goal in large cities, like NYC, “is to serve as a model for others to improve quality of life and build smarter, more efficient cities in the future.”
Within NYC, the app offers three different rides: UberX, UberXL, and the option to pool with others at a discount. Uber works with urban planners and local leadership to inform how to operate the best with the given infrastructure and transit. Uber also has taken measures to ensure safety including background checks on all drivers, emergency calling through the app with tracked locations, insurance with rides, and keeping personal details private.
“I love Uber and Lyft so much,” King’s student Lisa Stapelton said. “It’s safer than taxis in my opinion because there’s a digital record. I have to take [cars] a lot for work because I have to transport lots of things that are too much for lugging around the train.”
In June, the New York Daily News reported that there were some 85,000 cars working for Uber, Lyft and other app-ride competitors. People utilize Uber every day in NYC, and the apps are known for being an option for college students if needed. Along with the metro, Uber and other carpool apps like Lyft are used consistently by students at King’s.
“If Uber or Lyft was banned, I would be so sad and inconvenienced,” Stapelton commented.
The choice to not renew Uber’s license is currently secluded to London, so New Yorkers do not have to worry just yet. But, with all different modes of transportation, the open market could quickly be filled with new apps if Uber should be banned in more major cities in the future. For now, Uber can appeal the TfL’s decision and continue operations in London until everything is finalized.
“We understand we’re held to a high bar, as we should be,” Uber’s CEO Dara Khosrowshahi said in a tweet. “But this TfL decision is just wrong. Over the last two years, we have fundamentally changed how we operate in London. We have come very far, and we will keep going, for the millions of drivers and riders who rely on us.”