London cancels Uber's operator license

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London deemed Uber unfit to run a taxi service on Friday and stripped it of its license to operate from the end of next week in a major blow to the US firm and 3.5 million users in one of the world’s wealthiest cities.

The capital’s transport regulator said the Silicon Valley technology giant’s approach and conduct was not fit and proper to hold a private vehicle hire license and it would not be renewed when it expires on September 30.

A photo illustration shows a London taxi passing as the Uber app logo is displayed on a mobile telephone, as it is held up for a posed photograph in central London, September 22, 2017. /VCG Photo

Uber, which has 40,000 drivers working in the capital, said it would contest the decision. Regulator Transport for London (TfL) said it would let Uber operate until the appeals process is exhausted, which could take months.

“Uber’s approach and conduct demonstrate a lack of corporate responsibility about many issues which have potential public safety and security implications,” TfL said.

Specifically, TfL cited Uber’s approach to reporting serious criminal offenses, background checks on drivers and software called Greyball that could be used to block regulators from gaining full access to the app.

A taxi drives past the London Eye in central London, Britain September 22, 2017. /Reuters Photo

Uber London General Manager Tom Elvidge made a combative response, saying the mayor, who supported the decision, and regulators had “caved in” to people who want to restrict consumer choice. He added that Uber would “immediately challenge” the decision in court.

New Chief Executive Dara Khosrowshahi, brought in to steer the company after a string of scandals involving allegations of sexism and bullying, later appealed to the city on Twitter with a self-deprecating style highly unusual for the aggressive ride service.

“Dear London: we r far from perfect but we have 40k licensed drivers and 3.5mm Londoners depending on us. Pls work w/us to make things right,” Khosrowshahi wrote in a tweet.

Uber has turned to users to defend itself in other battles around the world, and an online petition in support of Uber had gathered more than 390,000 signatures by evening in London.

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Source(s): Reuters