Uber loses license in London over safety failures

Uber Loses Its Licence License to Operate in London

Uber executives are being summoned to an emergency meeting with Manchester City Council after the taxi firm was stripped of its licence in London. "We are inviting the tens of thousands of PHV drivers across London to register themselves on the Ola platform, as we prepare to launch in the city in the coming weeks".

Uber sits at the centre of what could be described as the "perfect storm" in the gig economy marketplace as Transport for London today announced that they will not be renewing Uber's licence to operate in London. The extension was conditional on passenger safety improvements.

Taking considerations to Uber, they adjusted their security protocols at the time after the said violations; however, this is not enough for Transport for London.

Some trips took place with unlicensed, suspended or dismissed drivers. The company said it had audited every driver in London over the past two months and tightened its processes. In one example, a driver was able to continue working for Uber, despite the fact his private hire licence had been revoked after he was cautioned for distributing indecent images of children.

The legislation means that Uber now has 21 days to appeal, during which it can continue to operate pending an appeal and throughout any potential appeals process.

Uber is going to appeal the decision, said a spokesperson for Uber. "We remain 100 per cent committed to your safety".

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Furthermore, TfL also determined that it had experienced a "pattern of failures" in London which risked passenger safety. However, the agency has identified a pattern of failures by the company including several breaches that placed passengers and their safety at risk.

Unite, Britain's biggest trade union, welcomed the announcement and called for a level-playing field to allow traditional taxi services to compete.

In September, an Uber driver sued the company for misclassifying its drivers as independent contractors.

"Uber's DNA is about driving down standards and creating a race to the bottom which is not in the best interests of professional drivers or customers". The company said it will appeal, but the decision gave competitors an opportunity to muscle in on the negative attention.

In response to TfL's decision, Uber's CEO Dara Khosrowshahi tweeted: "We understand we're held to a high bar, as we should be". We are asking for an urgent meeting with the mayor to discuss what mitigation plan can now be put in place to protect Uber drivers'. The company's management is hoping that it can convince judges a second time round to renew its licence.

He added: "I'm probably going to sell the auto because I don't know what I am going to do".

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