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Uber loses its London licence

  • Transport bosses in capital strip minicab app of licence to operate in London
  • They say the company has failed to address concerns over safety and security
  • Statement reveals passengers on 14,000 trips were duped over their driver
  • Uber has 21 days to appeal the decision during which time it can still operate

Uber has been stripped of its licence to operate in London after failing to stop unlicensed and uninsured drivers picking up thousands of passengers.

Transport for London (TfL) found that at least 14,000 trips were made with drivers who were different to the ones shown on the app.

This was due to a system change which allows unauthorised drivers to upload their photographs to legitimate Uber driver accounts, the transport body said.

At least one driver picking up fares had previously had their licence revoked, it emerged today.

The company now has 21 days to mount an appeal and can continue to operate during that time. It will have to convince a court it is ‘fit and proper’ by the time of the appeal.

The move  could end up seeing the app’s 45,000 drivers looking for other ways to make money, and thousands of customers searching for alternative apps. Unions meanwhile have welcomed the move as a strike back at the ‘gig economy’.

Uber has been stripped of the right to operate in London amid ongoing concerns over safety

TfL found unauthorised drivers had been uploading their photos to legitimate drivers' profiles

TfL found unauthorised drivers had been uploading their photos to legitimate drivers’ profiles

Announcing the bombshell decision, TfL’s director of licensing Helen Chapman said today: ‘As the regulator of private hire services in London we are required to make a decision today on whether Uber is fit and proper to hold a licence.

‘Safety is our absolute top priority. While we recognise Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured.

‘It is clearly concerning that these issues arose, but it is also concerning that we cannot be confident that similar issues won’t happen again in future.’

Tfl said it had identified ‘several breaches that placed passengers and their safety at risk’ and ‘does not have confidence that similar issues will not reoccur in the future’.

It comes two years after Transport for London first tried to pull the plug on the firm’s operations in London, following a number of crimes committed by drivers.

The move sparked a mixed reaction among Londoners, with some saying they rely on the app to get them places cheaply.

Others were less sympathetic with the firm, saying they were shocked at the security risks.

The firm’s CEO Dara Khosrowshahi raged on Twitter: ‘We understand we’re held to a high bar, as we should be. But this TfL decision is just wrong.

‘Over the last 2 years we have fundamentally changed how we operate in London. We have come very far — and we will keep going, for the millions of drivers and riders who rely on us.’

Shares in Uber were down almost 6% in pre-market trading in New York.

 

Some Londoners went online to back the move, saying they were shocked at safety breaches

 

Some Londoners went online to back the move, saying they were shocked at safety breaches

But others insisted they have never had a problem with the app and were worried about the cost of black cabs

But others insisted they have never had a problem with the app and were worried about the cost of black cabs

Responding, Mayor of London Sadiq Khan said in a statement: ‘I know this decision may be unpopular with Uber users but their safety is the paramount concern.

‘Regulations are there to keep Londoners safe, and fully complying with TfL’s strict standards is essential if private hire operators want a licence to operate in London.’

Why did TfL revoke Uber’s licence?

Transport for London said today that Uber is not a ‘fit and proper’ operator because:

  • Changes to Uber’s systems allowed unauthorised drivers to upload their photos to other Uber driver accounts. This allowed them to pick up passengers in at least 14,000 trips.
  • Another failure allowed dismissed or suspended drivers to create an Uber account and carry passengers.
  • Tfl said Uber’s systems  had been ‘comparatively easily manipulated’.
  • TfL prosecuted Uber earlier this year for causing and permitting the use of vehicles without the correct hire or reward insurance in place.

Unite, Britain’s biggest trade union, welcomed the announcement and called for a level-playing field to allow traditional taxi services to compete.

‘There remains fundamental problems in the way the company operates, particularly issues around passenger safety,’ said Unite official Jim Kelly.

‘Uber’s DNA is about driving down standards and creating a race to the bottom which is not in the best interests of professional drivers or customers.’

But, the Independent Workers Union of Great Britain – which represents gig economy workers – criticised TfL’s decision.

‘The mayor’s decision to once again deny Uber a license will come as a hammer blow to its 50,000 drivers working under precarious conditions,’ said James Farrar, chair of the union’s United Private Hire Drivers branch.

‘We are asking for an urgent meeting with the mayor to discuss what mitigation plan can now be put in place to protect Uber drivers.’

In September, Uber’s right to operate in the capital was extended by just two months after Transport for London (TfL) refused to grant a full five-year licence.

Uber was granted a 15-month licence by a judge in June 2018 after it appealed against a TfL decision not to renew its licence over safety and security concerns. The ride-hailing app’s existing licence was due to expire at 11.59pm today.

Sadiq Khan backed the decision, saying: 'Regulations are there to keep Londoners safe'

Sadiq Khan backed the decision, saying: ‘Regulations are there to keep Londoners safe’

But Uber CEO Dara Khosrowshahi insisted the company has 'come very far' and the decision was 'just wrong'

But Uber CEO Dara Khosrowshahi insisted the company has ‘come very far’ and the decision was ‘just wrong’

The reasons previously given for revoking the licence cited by TfL included: the company’s approach to reporting serious criminal offences, how drivers’ medical certificates were obtained, how criminal record checks were carried out and its use of technology which allegedly helped it evade law enforcement officials.

Uber says a range of new safety features have been introduced to its app in the past two years.

Uber’s regional general manager for northern and eastern Europe Jamie Heywood said today: ‘TfL’s decision not to renew Uber’s licence in London is extraordinary and wrong, and we will appeal.

‘We have fundamentally changed our business over the last two years and are setting the standard on safety. TfL found us to be a fit and proper operator just two months ago, and we continue to go above and beyond.

‘On behalf of the 3.5 million riders and 45,000 licensed drivers who depend on Uber in London, we will continue to operate as normal and will do everything we can to work with TfL to resolve this situation.’

Transport for London has raised concerns about the safety of passengers

Transport for London has raised concerns about the safety of passengers

Earlier this month, it launched a system which automatically checks on the well-being of drivers and passengers when a journey is interrupted by a long stop.

It also unveiled a discrimination reporting button on its app, and collaborated with the AA to produce a safety video to educate drivers on topics such as reading the road, speed, space management and how to drop off and pick up passengers safely.

There are around 45,000 Uber drivers in London.

What are the Uber alternatives?

Bolt

Bolt, formerly known as Taxify, was founded by 19-year-old Markus Villig in 2013 in Estonia – where Skype also started.

Bolt allows users to order taxis from their mobile phone, much like Uber, but it is particularly popular in Africa and Eastern Europe.

It reportedly has over 30,000 drivers on its books, with rides start with a £2.50 base fee, plus £1.25 per mile and £0.15 per minute.

Kapten

Kapten was initially described as ‘France’s version of Uber’ after setting up in Paris, Lyon and the French Riviera. But has now moved to London.

It launched in the British capital in May.

According to its website, rides start at £5, with an additional £1.50 per mile and £1.15 per minute.

The app trumpets its loyalty scheme which allows free rides to users who repeatedly book cabs through it.

Xooox

Xoox is another ride-hailing service whic launched in the UK in May, claiming it put taxi drivers ‘back in control of their own livelihoods’.

The app shows a range of available taxis and minicabs, allowing customers to compare different firms.

Speaking on its launch, boss Darren Tenney said: ‘For too long, drivers have had two options – find their own fares without the help of technology, or be enslaved to an algorithm that dictates when they work and for how much. xooox changes this forever; from now on, drivers are in charge of the tech, not the other way around.’

Kabbee

Kabbee is a price comparison and booking service for minicabs in London, drawing on 70 fleets in the capital.

All drivers are licensed and minicab fleets with poor ratings get struck off from the service.

It insists it is a cheaper service than rivals and specialises in airport runs.

Wheely

Wheely, which was founded in 2012 by Swiss-Russian entrepreneur Anton Chirkunov, aims itself at the executive end of the market

It employs around 2,500 in Russia and London and insists it has much higher entry criteria than UberEXEC. The firm insists its fleet ‘comprises new luxury and executive cars without tacky ads or roof lights’.

Its business rate cars start at £6, then increase by 50p per minute and £1.60 per mile.

How Uber’s reputation has been tainted by a series of cases where drivers have attacked passengers

Uber driver Temur Shah was jailed earlier this month for sexually assaulting a woman passenger as she leaned out of his car to be sick

Uber driver Temur Shah was jailed earlier this month for sexually assaulting a woman passenger as she leaned out of his car to be sick

The reputation Uber has gained for dangerous drivers has come from a series of court cases in the capital.

Earlier this month, UBber driver Temur Shah was jailed for sexually assaulting an ‘utterly defenceless’ passenger as she was sick out of his car door.

Hehad picked the 27-year-old female passenger up from a West End address in London in the early hours of the morning in January 2018.

The 45-year-old heard his passenger say she felt unwell during the journey and pulled over, asking her to move into the front seat of the car.

When she told him she was about to vomit he stopped a second time, then leaned over to open the door and put his hand under her bra, Isleworth Crown Court heard.

While she was being sick he then continued the assault, touching her genital area over her clothes, a court hard.

Scotland Yard previously criticised the firm after it emerged it failed to report 48 serious crimes.

In 2017, driver Jahir Hussain was jailed for 12 years for raping drunken women he picked up outside east London bars.

His first victim awoke to find Hussain fondling her breasts and undoing his belt on 12 October last year.

Uber driver Jahir Hussain was jailed for sex attacks on womenUber driver Samson Haile was jailed for a sex attack on a women

Uber drivers Jahir Hussain and Samson Haile were both jailed for sex attacks on women

The woman lay still in the back of the cab frozen in fear as he raped her, Snaresbrook Crown Court heard. Father-of-four Hussain then carried out two attacks in quick succession in the early hours of 2 December.

He wasn’t working for Uber at the time of the attacks, but the first of his two victims had booked an Uber cab and he said he was the driver.

In 2015, driver Samson Haile was jailed for eight months for sexually assaulting a female customer in the back of his taxi.

During a journey, the 32-year-old told the woman ‘you are very pretty’ and asked her if she had a boyfriend, before saying ‘I want to have sex with you’.

He then turned round in his seat and touched her leg with his hand, before moving it up to her thigh. Minutes later touched her again on the knee at which point she screamed to be let out of the car.

Sabrina Benltaief posted photos of her injuries online after claiming an Uber motorist drove off while she was leaning into the car and left her unconscious in the street

Sabrina Benltaief posted photos of her injuries online after claiming an Uber motorist drove off while she was leaning into the car and left her unconscious in the street

In 2017, mother Annastazia Merrett claimed she suffered a black eye in a racist assault by an Asian Uber driver who called her a ‘white b****’.

She said she was hit twice by the driver who refused to help her open a gate after dropping her off in Elephant and Castle, South London.

Police said a community resolution was agreed upon by both parties. Uber said the driver ‘strongly denied’ the allegations.

Last year, a hairdresser told how she required stitches after an angry Uber driver alleged dragged her down the road.

Sabrina Benltaief, 20, of Bromley, South East London, claimed the motorist drove off while she was leaning into the car and left her unconscious in the street before she later woke up in hospital.

Uber condemned the actions but no action was taken by police.

The Met Police criticised Uber for failing to report crime due to fears for its reputation

The Met Police criticised Uber for failing to report crime due to fears for its reputation

In 2017, head of the Metropolitan police’s taxi and private hire unit Neil Billany said Uber seemed to be ‘deciding what [crimes] to support’, in a letter seen by a Sunday newspaper.

He spoke of a ‘significant concern’ that Uber was only reporting ‘less serious matters’ that would be ‘less damaging to [its] reputation’.

He accused Uber of ‘allowing situations to develop that clearly affect the safety and security of the public’ by keeping drivers’ crimes from police — including at least six sexual assaults on passengers.

source:dailymail