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

Lake Cowichan fire department back with annual toy and food drive on Dec. 13-14

As Lake area gets ready to fill Christmas hampers, firefighters call for donations of toys and food

Chargers in every match at provincial tourney

DCS finishes 12th after competitive tournament

Lake Cowichan’s roads need assessing, so costly reconstruction can be avoided

Some work needs to be done soon or costs could skyrocket

Business notes: Chamber numbers up as new board takes over

“The deficit we have because of the Visitor Centre is a challenge”

Former Duncan man found guilty of sexual assault of 14-year-old

Corey Joseph Scribner was found guilty in a Duncan courthouse on Nov. 5

VIDEO: Rockslide closes Highway 93 in Fairmont Hot Springs

Geotechnical team called in to do an assessment after rocks fell from hoodoos

Final appeal rejected for man convicted in deaths of missing Alberta seniors

Lyle and Marie McCann were in their 70s when they left their home in St. Albert in 2010 and vanished

Thieving gun-toting Santa breaks into Princeton restaurant, makes icing sugar sandwich

The suspect allegedly made a sandwich of icing sugar and ham

Infants should be tested for autism if older siblings are diagnosed, Canadian study suggests

Blood test for infants with sibling who’s been diagnosed would get information to families earlier

Province gives $4.93M boost to school-based gang prevention program

The funding will see the ‘Erase’ program expand from 12 to 16 communities

Vancouver Island town to star in new Syfy series: Resident Alien

Ladysmith will play the role of Patience, Colorado in the series

Half of shoppers say they have no holiday spending budget

B.C. consumers surveyed estimate they will spend $921 this season

Opening day delayed at Mount Washington

Dec. 6 was set as opening day but will now be delayed due to lack of snow.

Man killed in crash due to ‘absolutely treacherous’ conditions on Coquihalla

Winter means icy roads are dangerous and drivers should be careful, RCMP say

Most Read