London gives Uber the boot

London gives Uber the boot

Company must 'play by the rules', says mayor

LONDON: London's transport authority said on Friday that it would not renew Uber's licence to operate in the British capital, arguing that it demonstrates a lack of corporate responsibility with implications for public safety and security.

Transport for London said the ride-hailing application was not "fit and proper to hold a private hire operator licence".

It cited its approach to handling serious criminal offences and its use of software to block regulatory bodies from gaining full access to the app, preventing "officials from undertaking regulatory or law enforcement duties".

London Mayor Sadiq Khan said he supported the decision, saying that any operator of taxi services in the city "needs to play by the rules".

He said that "providing an innovative service must not be at the expense of customer safety and security".

Uber, which has been criticised for management misbehaviour and rule-breaking and has feuded with regulators all over the world, shot back quickly in response. In a statement, the US-based company said the decision by London regulators would "show the world that, far from being open, London is closed to innovative companies".

John Colley, a strategy professor at Warwick Business School, said poor values ultimately bring companies down. Uber is now effectively banned from France, Spain and Belgium -- together with facing litigation and investigation around the world, he said.

"There is a very long list of businesses who have suffered for failing to uphold the level of values necessary," Colley said. "Until Uber gets this message then it will suffer lost trade as a result of its deteriorating reputation."

Uber, which has an estimated 3.5 million registered users and 40,000 drivers in London, can appeal within 21 days.

London strips Uber of its licence to operate from the end of September. (Reuters video)

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