London gained’t be calling for Uber anymore.
Town’s transportation authority has declined to resume the ride-sharing big’s license to function in its largest European market. Transport for London stated in its resolution that Uber’s actions “reveal an absence of company accountability,” and so it’s not “match and correct” to carry a license within the metropolis.
Uber’s London license will expire on September 30. However the firm has 21 days to enchantment the choice (which it instantly pledged to do) and will probably be allowed to proceed working within the metropolis “till any enchantment processes have been exhausted,” Transport for London stated.
“All firms in London should play by the foundations and cling to the excessive requirements we count on—significantly in terms of the security of shoppers,” London Mayor Sadiq Khan stated in a press release. “Offering an modern service should not be on the expense of buyer security and safety.”
However Tom Elvidge, Uber’s basic supervisor, instructed The New York Instances the town had “caved in to a small quantity of people that need to prohibit shopper selection.”
Lots of the controversies which plagued Uber in London mirror its issues in the USA. The corporate didn’t report critical prison offenses comparable to sexual assaults and didn’t conduct thorough background checks on drivers.
On paper Uber’s background test system is London is much more thorough than in the USA—the truth is, it’s the identical course of the town’s cab drivers undergo. Every driver is meant to bear an Enhanced Disclosure and Barring Service (DBS) test, which incorporates an examination of prison data. Nevertheless, Uber reportedly doesn’t adhere to this coverage.
Uber has additionally obtained worldwide criticism for its use of a software program known as Greyball, which may “block regulatory our bodies from gaining full entry to the app.” The corporate used this instrument to evade regulation enforcement and primarily function unregulated in main cities.
This conglomeration of scandals led Uber co-founder Travis Kalanick to resign as CEO—20 different workers have been additionally fired. The corporate introduced in former Expedia head Dara Khosrowshahi to proper the ship.
There are additionally some Uber points particular to the London market. Final yr, a British courtroom dominated that Uber drivers have been workers and never impartial contractors. This meant the corporate must adjust to increased labor requirements comparable to dwelling wage, pensions and vacation pay.
Uber has struggled to satisfy these requirements, and its workers have additionally typically clashed with London’s cab drivers. These cabbies not solely consider Uber is under-regulated, in addition they worry for his or her jobs since Uber fares are 30 p.c lower than cab fares.
These low charges have made Uber extremely in style in London—the town boasts 40,000 drivers and three.5 million clients who use the service no less than as soon as each three months. Uber has pushed Londoners over 100 million miles on 20 million journeys throughout its 5 years within the metropolis.
There’s additionally much less competitors for Uber in London than in main U.S. cities—rival ride-hailing apps like Lyft, Through and Juno don’t function within the metropolis but
As such, Uber’s British buyer base is sort of loyal—and so they’re not happy with at present’s resolution. A Change.org petition began this morning in assist of London Uber drivers already has over 160,000 signatures.
“This resolution is affecting the actual lives of an enormous variety of sincere and hard-working drivers in London,” the petition reads.
Khosrowshahi has not but commented on Uber’s London lockout.