It has demonstrated a ‘lack of corporate responsibility’, says transport body

Taxi-hailing app Uber suffered a major blow on Friday as Transport for London (TfL) — the body responsible for issuing licences to cab companies — said that from September-end it would lose its licence to operate in the city. “Uber London Limited is not fit and proper to hold a private hire operator license,” said TfL regarding the transport app’s private hire operator licence that expires on September 30.

It said that when it came to reporting serious offences, gaining medical certificates for its drivers, and other issues, Uber’s approach and conduct demonstrated a "lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications." Around 3.5 million Londoners use the app.

‘Play by the rules’

"Providing an innovative service must not be at the expense of customer safety and security…all companies in London must play by the rules and adhere to the high standards we expect — particularly when it comes to the safety of customers," said London’s Mayor Sadiq Khan, who backed the move.

Uber pledged to challenge the decision in the courts to "defend the livelihoods" of drivers and the "consumer choice of millions of Londoners…the bank would show the world that, far from being open, London is closed to innovative companies who bring choice to consumers."

The stance is a political gamble for Mr. Khan in a city where Uber is a divisive issue. London’s black cabs have long remonstrated against the app, while the 40,000 or so cars that have joined the service have added to the pressure on London’s already congested roads. However, Uber has brought down travel costs, making travelling in taxis affordable to new sections of the society. It has also provided livelihood to many from migrant communities, who form the bulk of Uber drivers.

“Frankly this seems to be a decision intended to please black cab drivers and making #London more hostile for people of colour/migrants,” tweeted Sunny Singh, a London-based writer and commentator, who argued that for many from ethnic minority communities it also offered greater “freedom to move about the city”.

The Institute of Directors, a business body, called on the TfL and Uber to find a solution, urging the transport giant to clarify how it would meet safety standards. It also asked the TfL to acknowledge London's "hard-fought and positive reputation as a hotbed for disruptive innovation and tech-driven competition…”

"With 40,000 jobs now at stake across London, there could also be a big human cost to this decision," the institute added.

'Welcome decision'

However, others welcomed the decision. Among them was Labour MP Wes Streeting, who led a parliamentary campaign to revoke Uber’s license citing concerns about safety and security, and the treatment of drivers "some of who are taking home as little as £2 an hour."

Responding to Uber’s statement about London being closed to innovative companies, he tweeted: “It means London is closed to companies that flout the rules and don’t handle complaints about rape and sexual assault seriously.”