London’s municipal transport authority, Transport for London (TfL) has rejected an application to renew the operating licence of Uber.
The TfL ruled that Uber is not a “fit and proper” private car hire operator, Washington Post reports. The ride-hailing giant license expires at the end of September but it has 21 days to appeal the decision. However, it can continue to operate in the capital – where it has 3.5 million users – until the firm has exhausted the appeals process, which could take months.
According to the Washington Post, Uber’s popularity stems from the fact that its rates are often far lower than that of London’s famous black cabs. A ride from Heathrow (London’s largest airport) to the city might cost $50 in an Uber and more than $100 in a black cab.
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Transport for London, the governing authority, said that it rejected the application to renew the license because “Uber’s approach and conduct demonstrate a lack of corporate responsibility” by not reporting serious criminal offenses, obtaining medical certificates and background checks for the drivers.
Uber disagreed. Tom Elvidge, general manager of Uber in London, said the rejection shows “The world that, far from being open, London is closed to innovative companies.”
“To defend the livelihoods of all those drivers, and the consumer choice of millions of Londoners who use our app, we intend to immediately challenge this in the courts,” Elvidge vowed.
Uber has been facing several challenges in recent times. In some cities, the ride-sharing app has been banned or suspended, or Uber has pulled out of the market. In Europe, Uber no longer operates in Denmark, Hungary and Bulgaria.
For more on this story, visit the Guardian UK website.
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