Uber wins right to carry on operating in London for 15 months as judge agrees car-sharing service is…
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Uber wins right to carry on operating in London for 15 months as judge agrees car-sharing service is ‘fit and proper’ after firm claimed it had changed its culture
Uber has won a partial victory at Westminster Magistrates’ Court in getting its London operating licence renewed.
On Tuesday, a judge granted a new 15-month permit which will allow the car service to continue to operate in the city.
The decision comes months after Transport for London (TfL) bosses blocked the Silicon Valley company from renewing its licence to operate for another five years, in September 2017.
The taxi hailing app admitted to a judge during an appeal which began on Monday that TfL was right to have safety concerns.
But Uber said the operating licence should be now renewed as it has made ‘wholesale’ reforms.
Chief magistrate Emma Arbuthnot said Uber was now, in her judgement, ready for a renewal and granted a 15-month licence.
Despite good news for the company, Uber will have to pay TFL’s legal costs of £425,000.
Why did Uber lose its London licence and where else is it banned?
Uber was not considered ‘fit and proper’ to retain an operating licence in London because of its failure to report crimes in London.
But passenger were furious because many said they would be unable to afford late-night lifts home and will put thousands of drivers out of work.
After TfL denied them a licence in September York and Brighton followed suit.
Sadiq Khan, Mayor of London, announced TFL’s decision to deny Uber its license after a series of serious criminal offences including customer data hacking with more than 1,000 London-licensed Uber drivers being accused of ‘category A’ offences including, stalking and dangerous driving.
Uber claims it has improving procedures for reporting criminal action and appointed three non-executive directors to its UK boards.
It now proactively reports serious incidents to the Metropolitan Police.
Uber is seeking a new licence for just 18 months, rather than the full five years.
TfL’s concerns came after it was revealed 2,500 Uber drivers had been investigated for suspected offences including sex assaults, stalking and dangerous driving.
Ms Arbuthnot said: ‘A decision had been made that Uber was no longer fit and proper to be granted a licence.
‘But evidence has been provided by ULL (Uber London Ltd) today that it is fit and proper to hold a licence.
‘ULL has shown evidence that it is making efforts to change its operations, procedure and governance.
‘I have given particular consideration to the agreed conditions between ULL and TFL.
‘ULL will update TFL in the effectiveness of its complaints procedures every 6 months.
‘It is clear that personal safety is TFL’s chief priority.
‘The question comes down to whether uber can be trusted and whether it has change and will maintain that change when these proceedings fall away.’
The Silicon Valley firm – which boasts more than 5billion passengers in over 630 cities worldwide – needed to win back the licence amid fears the decision in London may encourage authorities in other countries to do the same.
Labour’s London Assembly transport spokeswoman Florence Eshalomi said it was reassuring that Uber had taken ‘some action to clean up their act’ and warned it would be closely monitored.
Tom Elvidge, Uber’s UK general manager, also said he was ‘pleased’ with the decision and said the firm would work to earn TfL’s trust.
Uber has caused controversy after it essentially revolutionised the way passengers take taxis, by allowing people to go cashless and call taxis via an app.
However, drivers used GPS systems which black cab drivers in London do not since they have to take years worth of tests to become qualified and must go through rigorous testing.
Protests against Uber have taken place across the city but the app remains popular.
Steve McNamara, General Secretary of the Licensed Taxi Drivers’ Association (LTDA), slammed the decision.
He said: ‘We’re disappointed that the Court has sided with Uber and the firm has been given an 15-month licence to operate in London.
‘Uber’s blatant disregard for TfL’s regulations and public safety was laid before the Court.
‘The justice system has failed Londoners today and let an aggressive multinational corporation win. Uber is not a fit and proper operator and the LTDA will be consulting its lawyers as to how we can hold it to account and keep streets safe for Londoners’.
Today’s ruling is being seen as a victory for the city.
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