London’s Uber call

Regulator rules out licence

UBER will lose its licence to operate in London because it may be endangering public safety and security, the local regulator said, in a severe blow to a company already facing big questions over its corporate culture.

The company, which has been beset by a litany of scandals over its management style – from accusations of sexism to the illegal use of software to trick regulators – was told it was not “fit and proper” to keep operating in London, where it has 3.5 million passengers and 40,000 drivers.

The regulator, Transport for London, said it “considers that 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”.

It cited instances in which Uber failed to report serious criminal offences as well as its penchant to deceive regulators in its decision to not renew its licence when it expires on September 30. Uber said it would appeal, during which time it can continue operating.

The decision startled many – even though the ride-hailing business has many critics. The city’s black-cab drivers, who spend years learning the city streets to pass the famed “Knowledge” test, objected to the interlopers who undercut their business. Unions objected to the company’s treatment of its workforce.

Labour Mayor Sadiq Khan was quick to endorse the decision of an agency he supervises.

He said that any operator of taxi services in the city “needs to play by the rules”.

“Providing an innovative service must not be at the expense of customer safety and security,” he said.

Uber had been warned. Earlier this year, Transport for London renewed its licence on a limited basis, giving it six months to address concerns.