Uber banned from operating in London – what does that mean for other cities?
14,000 rides have taken places with unlicensed and uninsured drivers due to a change in its identification system
Uber was stripped of its operating license on Monday by Transport for London after the authority cited a series of issues over the past several months.
TfL's primary issue with Uber comes from a change to the identification process for drivers, that allows unauthorized drivers to operate under active Uber accounts. In some of the 14,000 cases that TfL has found, these drivers were not properly licensed or insured, which creates a massive security breach for the company, and its users.
The mayor of London has backed TfL's decision stating that "it is essential that these companies play by the rules to keep their customers safe."
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Jamie Heywood, Uber's regional general manager for Northern and Eastern Europe said that decision is "extraordinary and wrong" and said that TfL has found them to be a proper operator just two months ago. "On behalf of the 3.5 million riders and 45,000 licensed drivers that 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," Heywood said.
If Uber's license is properly revoked in London, that would be have massive ripple effects on the ridesharing service's market presence in Europe. This incident could also result in equally extensive investigations occurring in other major cities like New York and Los Angeles which could result in similar findings.
Do you think that Uber should be given a third chance to operate in London? Or is this the beginning of the end for Uber? Comment Below!