London a test of Uber 2.0

Atonement by Uber boss Dara Khosrowshahi for the sins of his blustering predecessor have met with approval so far. Regaining a lost licence in London would be another point in his favour.

Uber’s case rests in large part on Khosrowshahi. On Monday it told the Westminster Magistrate’s Court he had introduced “new global cultural norms”. This ethically reborn taxi company would never dream of using Greyball software to dance around regulators or berate complaining drivers, the story goes. Not when it can focus on insurance coverage, driving-hour limits and 24/7 telephone support instead.

Will London fall for the charms of Uber 2.0? Asking for an 18-month licence instead of five years is canny, suggesting acquiescence towards oversight. Yet Transport for London’s attitude towards ride-sharing apps shows no sign of softening. It banned Taxify, the app backed by China’s Didi Chuxing and has yet to approve Lyft.

For Uber, regaining a London licence would add legitimacy. Taxis, buses and cars fight for space in the city’s streets. Yet the company remains popular, thanks to investor-subsidised prices. A two-mile trip across London by black cab costs about £20. Uber will do it for a tenner. Its largest investor, SoftBank, has been outspoken in its desire for Uber to focus on core markets such as Europe rather than Southeast Asia, where it has stakes in rival firms.

This does not mean Uber’s financial health depends on London. It secured a $9bn investment from SoftBank in January despite the ban. London’s contribution to the company is hidden by the fact that revenue is funnelled to a holding company in the Netherlands — Uber International.

London is a test of Khosrowshahi’s efforts to reset relationships. Better conduct is a start. London, June 25