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Uber loses London license over 'a pattern of failures'

Uber could soon be banned from London. The city's ride-hailing regulator, Transport for London (TfL), has denied the company a new license because it's "not fit and proper" and allowed a number of uninsured and suspended drivers to operate in the city. "While we recognise Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured," Helen Chapman, director of licensing, regulation and charging at TfL said.

The decision is a critical blow in a long-running legal tussle between the two parties. Uber was stripped of its license in 2017 because TfL believed leadership had shown "a lack of corporate responsibility." The ride-hailing giant appealed the decision, though, and was given a 15-month window to clean up its act. Uber was then granted another two-month license to further improve its processes and safety standards. At the time, TfL said its earlier licensing decisions -- each of which added safety-focused conditions -- had led to improved "culture and governance" at Uber.

TfL wanted a little more time, though, "to allow for scrutiny of additional information." Today, we have clarity on what it was so concerned about. In a press release, the regulator said it had identified "a pattern of failures" and "several breaches." The biggest problem was a loophole in Uber's systems that allowed unauthorised drivers to upload their photo to another driver's account. That meant they could work through another driver's profile without insurance or prior vetting by Uber. TfL said "at least least 14,000 trips" were carried out this way. "Another failure" allowed dismissed and suspended drivers to create an Uber account and work.

"TfL recognises the steps that Uber has put in place to prevent this type of activity," the regulator said. "However, it is a concern that Uber's systems seem to have been comparatively easily manipulated." Ultimately, TfL said it wasn't confident the company wouldn't make similar mistakes in the future. "While we recognise Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured," Chapman said.

Uber has 21 days to launch an appeal and can operate while the appeal process is ongoing. Jamie Heywood, Uber's Regional General Manager for Northern & Eastern Europe, confirmed the company would take this course of action and "work with TfL to resolve this situation." He added: "TfL's decision not to renew Uber's licence in London is extraordinary and wrong. We have fundamentally changed our business over the last two years and are setting the standard on safety. TfL found us to be a fit and proper operator just two months ago, and we continue to go above and beyond."

Source: Transport for London (TfL)


via engadget.com

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