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Uber vows to appeal after losing licence in London

Transit authority refused to renew licence because of fake drivers
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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)

LondonBԪַs transit authority on Monday refused to renew UberBԪַs 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.

ItBԪַs the latest chapter in UberBԪַs 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 BԪַextraordinary and wrong,BԪַ 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 BԪַseveral breaches that placed passengers and their safety at riskBԪַ in its decision not to extend UberBԪַs license, which expires at midnight Monday. Among other things, unauthorized drivers carried out thousands of rides, the regulator said.

BԪַWhile 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,BԪַ said Helen Chapman, director of licensing and regulation at Transport for London, known as TFL.

BԪַWe cannot be confident that similar issues wonBԪַt happen again in future.BԪַ

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

BԪַWe understand weBԪַre held to a high bar, as we should be. But this TFL decision is just wrong,BԪַ CEO Dara Khosrowshahi tweeted. BԪַOver the last 2 years we have fundamentally changed how we operate in London.BԪַ

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 wouldnBԪַt 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 UberBԪַs 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 UberBԪַs systems BԪַseem to have been comparatively easily manipulatedBԪַ by drivers.

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

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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

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