Q & A

What is Uber?

UBER is a giant tech firm based in California, which has produced a hugely popular taxi hailing app. Founded in 2009, Uber is used in 40 towns and cities in the UK, and has 65 million users worldwide. In London, around 3.5 million passengers and 40,000 drivers use the app.

How does it work?

UBER operates through a smartphone app. The user launches the app, which can pinpoint their exact location, and types in their destination.

Users enter their card details after downloading the app, so the fare is deducted automatically. Drivers also have to register to use the app, and pay a commission on each fare.

What’s happened?

THE firm was been stripped of its licence to operate in London by Transport for London. It was first licensed as a private hire operator in 2012. But TfL has concluded it is no longer ‘fit and proper’ to hold it.

Why?

TFL has accused the firm of a string of failures it believes are putting the public at risk. These include failing to report serious criminal offences and instances of bogus medical certificates.

There are also concerns over the way Uber conducts background checks to see if drivers have a criminal record.

All would-be drivers in London must be checked against the Disclosure and Barring Service.

Until recently Uber worked with a firm called Onfido to carry out the checks. But earlier this month TfL announced all firms must use its contractor GB Group. It followed a string of criminal behaviour by Uber drivers.

TfL is also worried about the firm’s use of software called Greyball, which has been used in the US to evade regulators by blocking their access to the app. This has allowed some drivers to work in cities where they do not have a licence. Uber has insisted it does not do this in London.

So what happens now?

UBER’S current licence expires on September 30. But the firm has announced it will appeal. It will continue to operate while the appeal is being processed.

What does this mean for drivers?

IF the appeal is rejected around 40,000 Uber drivers will be out of work. As drivers are classed by the firm as ‘customers’ they do not have rights to redundancy or statutory notice pay.

Will my cab fares go up?

IN the short term yes. Uber trips can cost around 40 per cent less than black cab journeys. But Uber’s critics also say it pushes up fares by driving mini cab firms and black cabs out of business.

I don’t live in London, what does this mean for me?

UBER operates in 40 towns and cities, including Manchester, Birmingham and Glasgow. These authorities could now be prompted to look more closely at Uber’s business practices.

What does Uber say?

IT claims the decision to ban it will be hugely unpopular among Londoners. It says its drivers are licensed by TfL and have gone through the same background checks as black cab drivers. It also says Uber trips are safer as each trip is tracked by GPS.