Business

Why London is banning Uber from its streets

Why London is banning Uber from its streets”

"I know that Uber has become a popular service for many Londoners - but it would be wrong for TfL to license Uber if there was any way this could pose a threat to Londoners' safety", Khan said.

TfL, the London mayor's transport authority, announced on Friday that Uber had been stripped of its London licence in a surprise move that dealt a serious blow to one of Silicon Valley's fastest rising companies.

TfL stunned the powerful U.S. start-up on Friday when it deemed Uber unfit to run a taxi service for safety reasons and stripped it of its licence from September 30, although the company can continue to operate while it appeals.

Uber, which has its headquarters in San Francisco, claims to have 3.5 million passengers and 40,000 drivers in the capital, who depend on the app for their livelihood.

It is emphasized that the decision to ban the online service "shows the world that London is far from being open to innovative companies that offer consumers choice and opportunities for those who need them". Uber urged customers to sign the petition in a tweet posted at 12:41 p.m. Friday, about two hours after the London agency's decision.

One of Uber's British competitors in London, Addison Lee, is also awaiting a decision from TfL about a longer-term license. The company and TfL should work together, and legal battles notwithstanding, to devise reforms that would make Uber compliant.

On Friday, the TfL rejected Uber's application on the basis that the company was not "fit and proper" to hold a private auto hire operator licence after expiry of its current licence on September 30.

In a Licensing decision posted on Twitter, Transport for London "concluded that Uber is not fit and proper to hold a private hire operator license". However, Uber have argued that the decision is an insult to consumer freedom.

A lesser-skilled leader may have seen the London transportation authority's decision as unfair, insulting, maybe even a direct attack on innovation itself. So while Uber drivers' jobs are in jeopardy, they will still be able to work for a while, and, in the case that Uber wins an appeal, might never lose their ability to work at all.

He said Uber needs to offer "decent pay and conditions for its staff", and "there is an issue about safety".

Funny. In those pre-Uber times when there were more than five hundred charges of violent or sexual offenses in the regular cabs over a four year period nobody was talking about taking away the license of the Black Cabs.

Since its 2012 launch, Uber changed the London scene and the black cab monopoly game by undercutting prices.



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