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A8 WORLD NEWS
Tuesday 26 November 2019

Uber loses license in London over safety, vows to appeal

By KELVIN CHAN nize this issue, peel away
Associated Press the onion and make sure
LONDON (AP) — London's there are no similar issues,"
transit authority on Monday he said.
refused to renew Uber's In the U.S., safety advo-
operating license over cates have criticized Uber
concerns about impostor for conducting less thor-
drivers, with the ride-hail- ough background checks
ing company vowing to on drivers than traditional
appeal the decision as it taxi companies, which
struggles to secure its future generally check drivers'
in the British capital. fingerprints against data-
It's the latest chapter in bases.
Uber's rocky history with Uber has been slugging
London transport officials, it out with regulators in re-
who have subjected the cent months and losing.
San Francisco-based tech California recently passed
company to ever tighter legislation to make com-
scrutiny over concerns panies treat rideshare driv-
about passenger safety ers as employees instead of
and security. independent contractors,
Uber called the decision which could force Uber to
"extraordinary and wrong," In this Wednesday, Feb. 10, 2016 file photo, London taxis block the roads during a protest in cen- provide health and other
and has 21 days to file an tral London, concerned with unfair competition from services such as Uber. costly benefits.
appeal, which it said it Associated Press New Jersey's labor depart-
would do. It can continue ment recently sought more
operating during the ap- most recent license renew- conditions. sengers. And it cited other than $640 million from Uber,
peals process. al in September. In the latest decision, the "serious breaches" involv- saying it misclassified drivers
Transport for London cited "We understand we're transit authority said it was ing unspecified insurance- as independent contrac-
"several breaches that held to a high bar, as we concerned Uber's systems related issues. tors, and New York has en-
placed passengers and should be. But this TfL de- "seem to have been com- Uber said it has audited ev- acted a minimum wage for
their safety at risk" in its de- cision is just wrong," CEO paratively easily manipu- ery London driver over the drivers, which Uber passed
cision not to extend Uber's Dara Khosrowshahi tweet- lated" by drivers. past two months and will along to customers in the
license, which expires at ed. "Over the last 2 years One key issue was a soon launch a new "facial form of higher prices.
midnight Monday. Among we have fundamentally change to Uber's systems matching process" for its Mi- "It feels like the regulators
other things, unauthorized changed how we operate allowing unauthorized driv- crosoft-powered verifica- have the upper hand," Ives
drivers carried out thou- in London." ers to upload their photos tion system, which requires said.
sands of rides, the regulator The denial in a lucrative Eu- to other driver accounts. drivers to periodically take Baked into Uber's busi-
said. ropean market is a big set- This let them pick up pas- selfies for comparison with ness plan is the assumption
"While we recognize Uber back for Uber as it struggles sengers as though they their account photos. that many mundane parts
has made improvements, it to turn a profit. The com- were the booked Uber driv- Drivers will have to more ac- of running a business, in-
is unacceptable that Uber pany posted a $1.16 bil- er on at least 14,000 trips, tively confirm their identity cluding recruiting and dis-
has allowed passengers lion loss in the latest quarter which means all those jour- by blinking, smiling or turn- patching drivers, can be
to get into minicabs with and Khosrowshahi forecast neys were uninsured, TFL ing their head — part of re- automated or handled by
drivers who are potentially it wouldn't make a profit said. cently announced beefed a driver, said Nicholas Farhi,
unlicensed and uninsured," until 2021. Shares fell 1.5% in The change also resulted in up safety measures. a partner at OC&C Strat-
said Helen Chapman, di- New York. some passengers traveling Investors shouldn't be under egy Consultants. That may
rector of licensing and reg- TFL had already been keep- with unlicensed drivers, in- the impression the phony save money, but it doesn't
ulation at Transport for Lon- ing Uber on a tight leash. It cluding one whose license photo issue is limited to Lon- guarantee safety.
don, known as TFL. had revoked Uber's license was previously revoked by don, said Dan Ives, manag- By contrast, becoming a
"We cannot be confident once before, in 2017, but TFL. ing director at Wedbush black cab driver in London
that similar issues won't a court later granted it a TFL faulted Uber for an- Securities, who estimated takes about three years.
happen again in future." license lasting 15 months, other "failure" that allowed London represents 3% to 5% "The temptation with a
The company fired back, which TFL then extended dismissed or suspended of Uber's business. platform as big as Uber for
pointing out that TFL had for two more months in drivers to create a new "Regulators around the fraud is pretty high," Farhi
found it fit and proper in its September, but added 20 account and carry pas- world are going to scruti- said.q