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Uber loses licence to operate in London | Uber loses licence to operate in London |
(32 minutes later) | |
Uber will not be granted a new licence to operate in London, Transport for London (TfL) has said. | Uber will not be granted a new licence to operate in London, Transport for London (TfL) has said. |
The regulator said the taxi app was not "fit and proper" as a licence holder, despite having made a number of positive changes to its operations. | The regulator said the taxi app was not "fit and proper" as a licence holder, despite having made a number of positive changes to its operations. |
Uber originally lost its licence in 2017 due to safety concerns, but was granted a 15-month extension. | Uber originally lost its licence in 2017 due to safety concerns, but was granted a 15-month extension. |
The firm says it will appeal against the decision and can continue to operate during that process. | |
It had received an additional two-month extension in September which expired on Sunday. | It had received an additional two-month extension in September which expired on Sunday. |
Uber has faced resistance from regulators and traditional taxi services in a range of countries after being dogged by controversy for a number of years. | Uber has faced resistance from regulators and traditional taxi services in a range of countries after being dogged by controversy for a number of years. |
Helen Chapman, Director of Licensing, Regulation and Charging at TfL, said: "As the regulator of private hire services in London we are required to make a decision today on whether Uber is fit and proper to hold a licence. Safety is our absolute top priority. | Helen Chapman, Director of Licensing, Regulation and Charging at TfL, said: "As the regulator of private hire services in London we are required to make a decision today on whether Uber is fit and proper to hold a licence. Safety is our absolute top priority. |
"While we recognise Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured." | "While we recognise Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured." |
Fiona Cincotta, market analyst at City Index, told BBC Radio 4's Today that if Uber's appeal failed: "Here in London, there would be competition that would fill that void quite quickly." | |
Shorter licences | Shorter licences |
Uber said the decision was "extraordinary and wrong". | |
"We have fundamentally changed our business over the last two years and are setting the standard on safety," said Jamie Heywood, regional general manager for Northern & Eastern Europe at Uber. | |
"TfL found us to be a fit and proper operator just two months ago, and we continue to go above and beyond." | |
"Over the last two months we have audited every driver in London and further strengthened our processes.," he added. | |
About 45,000 drivers work for Uber in London, and if its licence is ultimately rejected all of them could lose their jobs. | About 45,000 drivers work for Uber in London, and if its licence is ultimately rejected all of them could lose their jobs. |
However, there are other apps providing a similar service which they could join. | However, there are other apps providing a similar service which they could join. |
TfL can offer licences of up to five years, but it has been more stringent of late. | TfL can offer licences of up to five years, but it has been more stringent of late. |
In July, Indian ride-hailing company Ola got a 15-month agreement for its entry into the London market, while ViaVan got a three-year licence renewal. | In July, Indian ride-hailing company Ola got a 15-month agreement for its entry into the London market, while ViaVan got a three-year licence renewal. |
London Mayor Sadiq Khan praised the Uber ruling. He said: "Only in the last few months it has been established that 14,000 Uber journeys have involved fraudulent drivers uploading their photos to other driver accounts - with passengers' safety potentially put at risk getting into cars with unlicensed and suspended drivers." | |
In September 2017, TfL said it declined to renew Uber's licence on the grounds of "public safety and security implications". | In September 2017, TfL said it declined to renew Uber's licence on the grounds of "public safety and security implications". |
TfL's concerns included Uber's approach to carrying out background checks on drivers and reporting serious criminal offences. | TfL's concerns included Uber's approach to carrying out background checks on drivers and reporting serious criminal offences. |
Uber's use of secret software, called "Greyball", which could be used to block regulators from monitoring the app, was another factor, according to TfL. | Uber's use of secret software, called "Greyball", which could be used to block regulators from monitoring the app, was another factor, according to TfL. |
At the time, Uber rejected TfL's claims that it endangered public safety and said Greyball had never been used in the UK for the purposes cited by TfL. | At the time, Uber rejected TfL's claims that it endangered public safety and said Greyball had never been used in the UK for the purposes cited by TfL. |
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