Get the hail out, Uber
London yanks license of ride service
Uber was struck with a stunning rebuke in London, where regulators revoked its license to operate and chastised its corporate culture, adding to the expansive list of controversies facing the beleaguered ride-hailing company.
London is one of Uber’s largest markets, with 40,000 drivers and 3.5 million people using the app once every 90 days. The broadside is a striking pushback against the free-wheeling business practices that contributed to the ouster of former chief executive officer Travis Kalanick.
Transportation authori- ties in London concluded Uber isn’t “fit and proper to hold a private hire operator license.” Transit officials cited a failure to do proper background checks on drivers, report crimes, and a program called “Greyball” used to avoid regulators.
The company has 21 days to appeal, and can continue to operate during the appeal process. “We intend to immediately challenge this in the courts,” said Tom Elvidge, general manager of Uber in London.
Uber has faced resistance in markets from Paris to the Philippines, but London’s ruling is one of the most aggressive to date. The decision pits the popularity of the company among millions of customers, against regulators and taxi drivers who want tighter controls.
Uber’s “approach and conduct demonstrate a lack of corporate responsibility,” the regulator, Transport for London, said in a statement.
The decision was cheered by the city’s traditional black cab industry. Taxi drivers must go through extensive testing before receiving a license, while Uber drivers have fewer requirements.