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Key questions: What's next for Uber and TfL?

Uber - AFP
Uber - AFP

Uber has been effectively barred from operating in London, after Transport for London on Friday denied its application to renew its private hire licence in London.

TfL accused Uber of "a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications”, and said it was not "fit and proper" to hold a licence in the capital. 

Uber said it would lodge an appeal within days against the decision. 

How did we get here?

Private hire operators in London, of which there are hundreds, are typically granted licences for five years.

When Uber first arrived in London just before the Olympics in 2012, it was given a five-year licence, and since then has grown to 40,000 drivers, creating a rapid increase in the total number of vehicles on the capital’s roads.

In May, it was given an unusual four-month licence extension, which expires next Saturday, Sept 30. Taxi drivers, who have seen their trade disrupted by Uber’s arrival, have lobbied against it being able to continue operations and unions have threatened legal action if an extension is approved.

Why has it been banned?

Transport for London said Uber had failed to ensure passenger safety and it was not satisfied the company was “fit and proper”.

It listed four concerns that it said Uber had failed to address: how it reports serious criminal offences, how medical certificates are obtained to approve drivers, how background checks are done, and its use of “Greyball” software to evade regulatory bodies.

Anything else?

While not mentioned by TfL, and not within the regulator’s remit, Uber has received a lot of criticism for the way it treats drivers, who are defined as self-employed instead of Uber workers. Politicians have rounded on the company as an emblem of the “gig economy” that does not guarantee work, benefits or a steady income for drivers.

The matter has become the subject of its own legal challenges.

Types of employment | an overview
Types of employment | an overview

What happens now?

Uber’s licence runs for another week, by which time it is likely to have formally lodged an appeal.

Once it has done that it will be able to continue operating in London as the challenge goes on, something that is likely to take several months, or possibly over a year.

Parallel to the legal process will be a major lobbying campaign. The company has already had hundreds of thousands of people sign its petition to keep Uber in London.

Where has Uber run into trouble around the world?
Where has Uber run into trouble around the world?

Is there a precedent for a challenge?

Not much of one. There has never been an example of a minicab firm on Uber’s scale and with such political sensitivity losing its licence in London, so the appeals process is something of an unknown.

The company has successfully convinced TfL to water down proposals in the past. In other cities around the world it has been shut out and made a return after laws changed or it altered its service.

What other issues is the new chief executive facing?

This latest setback in London adds to a growing list of challenges facing Dara Khosrowshahi, who started as Uber’s chief executive at the end of last month. Not only has the firm recently faced allegations of covering up sexual harassment, investor lawsuits over alleged fraud linked to founder Travis Kalanick and patent claims from Waymo, but just last week it came under fire after research revealed some Uber drivers were teaming up to force higher prices for passengers in cities including London.

The company has also been without key members of its management team for a lengthy period.

Uber has not had a finance chief since 2015, and currently has no engineering head, chief operating officer or president.