Uber vows to appeal after losing licence in London

Transit authority refused to renew licence because of fake drivers

In this Wednesday, Feb. 10, 2016 file photo, London taxis block the roads during a protest in central London, concerned with unfair competition from services such as Uber. (AP Photo/Frank Augstein, File)

London’s transit authority on Monday refused to renew Uber’s operating license over concerns about impostor drivers, with the ride-hailing company vowing to appeal the decision as it struggles to secure its future in the British capital.

It’s the latest chapter in Uber’s rocky history with London transport officials, who have subjected the San Francisco-based tech company to ever tighter scrutiny over concerns about passenger safety and security.

Uber called the decision “extraordinary and wrong,” and has 21 days to file an appeal, which it said it would do. It can continue operating during the appeals process.

Transport for London cited “several breaches that placed passengers and their safety at risk” in its decision not to extend Uber’s license, which expires at midnight Monday. Among other things, unauthorized drivers carried out thousands of rides, the regulator said.

“While we recognize Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured,” said Helen Chapman, director of licensing and regulation at Transport for London, known as TFL.

“We cannot be confident that similar issues won’t happen again in future.”

The company fired back, pointing out that TFL had found it fit and proper in its most recent license renewal in September.

“We understand we’re held to a high bar, as we should be. But this TFL decision is just wrong,” CEO Dara Khosrowshahi tweeted. “Over the last 2 years we have fundamentally changed how we operate in London.”

The denial in a lucrative European market is a big setback for Uber as it struggles to turn a profit. The company posted a $1.16 billion loss in the latest quarter and Khosrowshahi forecast it wouldn’t make a profit until 2021. Shares fell 1.3% in New York.

TFL had already been keeping Uber on a tight leash. It had revoked Uber’s license once before, in 2017, but a court later granted it a license lasting 15 months, which TFL then extended for two more months in September, but added 20 conditions.

In the latest decision, the transit authority said it was concerned Uber’s systems “seem to have been comparatively easily manipulated” by drivers.

One key issue was a change to Uber’s systems allowing unauthorized drivers to upload their photos to other driver accounts.

READ MORE: B.C. to allow Uber-style ride hailing services to operate in late 2019

This let them pick up passengers as though they were the booked Uber driver on at least 14,000 trips, which means all those journeys were uninsured, TFL said.

The change also resulted in some passengers travelling with unlicensed drivers, including one whose license was previously revoked by TFL.

The Associated Press

Like us on Facebook and follow us on Twitter

Just Posted

Sylvan Lake woman charged with fraud over $500,000

Rimbey RCMP launched an investigation in July 2019 with the suspect turning herself in on Aug. 30

PHOTOS: Sylvan Lake gives during annual Charity Check Stop

Sylvan Lake Emergency Services participated in the Charity Check Stop over the weekend

Sylvan Lake Wranglers fall in close game to Coaldale Copperheads

The Wranglers face the Southern Division second place team Sunday night at the NexSource Centre

Sylvan Lake company producing anti-ice beet brine

TD Bobcat Services first began manufacturing the organic brine in Sylvan Lake in 2014

Sylvan Lakers to perform in upcoming “The Nutcracker” ballet

The five dancers will grace the stage during the three day production at Red Deer College Dec. 13-15

China hints at national security trials for 2 Canadians detained for one year

The two Canadians’ detention is largely seen as retaliation for the arrest of a Huawei exec

Teen seriously injured: Police in Lethbridge, Alta., charge 5 people in swarming

Police say a 16-year-old boy made arrangements to meet with a young woman before he was attacked

PODCAST: The Expert welcomes AA Lacombe General Jared Williams

Lacombe resident joined Red Deer Advocate Sports Reporter Byron Hackett and Host Todd Vaughan

No reports yet of Canadians affected by New Zealand volcano eruption, feds say

Missing and injured included tourists from the U.S., China, Australia, Britain and Malaysia

Online ‘direct threats’ lead to cancellation of school dance in Blackfalds

Threats resulted from Grade 4 social studies class discussing energy sector

Blackfalds RCMP warn of poor driving conditions on QEII

Vehicles have been involved in collisions and are in the ditch

MP Blaine Calkins: Alberta left behind in Speech from the Throne

Liberal course does nothing for Alberta economy, crime

Would you leave your baby alone to go to the gym? This Canadian dad did

The man identifies just as a divorced dad with a nine-month-old baby

Most Read