Transport for London continues to consider five-year licence as unions express concerns over working practices

This article is more than 3 years old

This article is more than 3 years old

Uber’s licence to operate in London has been renewed but only for a period of four months, as transport authorities continue to deliberate whether to grant it a five-year licence.

The decision over renewal has become the latest focus of controversy around the app-based taxi firm, with black-cab drivers and unions demanding that Transport for London reject the application without assurances over Uber’s operation and working practices.

The GMB union and the Licensed Taxi Drivers’ Association have threatened legal challenges to TfL granting Uber a new licence. The LTDA has argued that Uber is not a fit and proper operator and is jeopardising public safety, while the GMB has demanded TfL impose conditions to secure the health and safety of drivers, passengers and other road users.

Two drivers won a GMB-backed case against Uber in an employment tribunal last year, which ruled that its drivers were not self-employed contractors but workers with holiday and pay entitlements. Uber is challenging the ruling.

Uber was originally licensed in London in 2012 and its five-year private hire licence is scheduled to expire on 30 May.

A TfL spokesperson said: “Uber London Limited has been granted a four-month private hire operator licence. This will allow us to conclude our consideration of a five-year licence.”

However, black-cab drivers condemned the move as a “coward’s decision”. Steve McNamara, general secretary of the LTDA, said: “Uber has still not answered questions that TfL asked months ago. We say they are either safe to licence or they’re not. You can’t be a little bit pregnant.

“We think that TfL’s reason for this temporary licence is unlawful. This is totally unprecedented.”

TfL said it would not comment on individual licence applications. McNamara said the LTDA was taking legal advice and could launch court action in the next week: “We will be challenging this coward’s decision.”

Another factor in TfL’s deliberations is its consultation into private hire vehicles. The proposals could see the licence fees for Uber and other large private hire operators rise dramatically, from about £3,000 over a five-year period to more than £2m.

The consultation closes in June. Last month TfL wrote to all operators saying it was “considering, on a case-by-case basis, whether private hire operator licences of a shorter duration should be issued, until the outcome of the consultation process is known and any changes are implemented”.

An Uber spokesperson said: “Millions of Londoners rely on Uber to get a reliable ride at the touch of a button and thousands of licensed drivers make money through our app. We look forward to continuing to help keep London moving.”