Ride-sharing service Uber is losing its license to operate in London, a big blow considering the city accounts for 5 percent of its business.
Matt Clinch of CNBC.com had the news:
Earlier Friday, Transport for London stripped Uber of its license to operate, which will likely affect more than 40,000 drivers in one of the world’s biggest cities. Uber said that it will be immediately challenging the decision in court.
“Uber’s approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications,” Transport for London said.
The final day of Uber’s license will be Sept. 30. In London, Uber has faced criticism from unions, lawmakers and traditional black-cab drivers over working conditions.
Elvidge’s emailed statement also included a link to a petition, which is urging the mayor of London and TFL to “think again.” The “Save Your Uber in London” petition had more than 600,000 signatures by the early hours of Sunday.
Simon Goodley of The Guardian reports that Uber also faces scrutiny about its hiring practices in the city:
The battle to reverse the licence ruling overlaps Uber’s efforts to appeal against a ruling regarding the employment status of its drivers, which will be heard at the employment appeals tribunal this week.
A UK employment court ruled last October that Uber drivers were not self-employed, as the company argued, but should be paid the “national living wage” as if they were directly employed. The decision was then described as a landmark ruling, which could affect tens of thousands of workers in the gig economy.
Last year’s case was brought by two drivers, James Farrar and Yaseen Aslam, on behalf of a group of 19 Uber workers who argued that they were employed by the San-Francisco-based company. The decision in their favour was thought to open up the possibility of claims from all of its 40,000 drivers in the UK, who are currently not entitled to holiday pay, pensions or other workers’ rights.
Uber said: “Almost all taxi and private hire drivers have been self-employed for decades before our app existed. With Uber drivers have more control and are totally free to choose if, when and where they drive with no shifts or minimum hours. The overwhelming majority of drivers say they want to keep the freedom of being their own boss.”
Tim Wallace of The Telegraph reports that Uber has hired an attorney known for fighting the London regulator:
Uber has hired top barrister Thomas de la Mare to lead the ride-hailing app’s appeal against its London ban, picking a QC who has successfully fought Transport for London (TfL) before.
The company, which on Friday received notice from the capital’s transport regulator that its operating licence would not be renewed, has also drafted in law firm Hogan Lovells.
Earlier this year, Mr de la Mare led a case for Uber that resulted in two of three restrictions on the private hire industry being declared unlawful. TfL had wanted drivers to be insured for private hire even when they were not being used to ferry passengers, and a requirement for a complaints telephone line was also thrown out. Uber failed to have an English language test thrown out, however.
