On Friday, Uber was dealt a huge blow by authorities in London, when the ride-hailing company was stripped of its operating license starting at the end of September. The decision by authorities in London will affect over 40,000 Uber drivers in one of the biggest cities in the world.
The Regulator Transport of London or TfL said the conduct of Uber posed risks to the safety of the public and would not be renewing its operating license, when it reaches expiration September 30. Uber can appeal over the next 21 days, and continue to operate during the appeal process.
In a prepared statement the TfL said that the approach and conduct of Uber demonstrates the lack of corporate responsibility related to several issue that have potential for both public safety and security implications.
Uber, which represents a third of all private hire vehicles on the streets of London, said it would appeal the TfL decision.
The Mayor and Transport of London caved in to the people who want a restriction on consumer choice, said the general manager of Uber in London Tom Elvidge and the company intends to challenge the decision immediately.
Uber has come under attack by the drivers of the iconic black cabs in London who say it undercuts the safety rules and has threatened the livelihoods of the cab drivers.
The U.S. based company has also been hit with criticism from lawmakers and unions and has been in legal battle over the rights of workers.
Uber has gone through a rocky few months following several scandals that involved allegations of bullying and sexism at the startup based in Silicon Valley that forced out co-founder and former CEO Travis Kalanick.
The ride-sharing company has had to quit in several countries such as Hungary and Denmark and face a number of regulatory battles with countries across the globe and multiple states in the U.S.
One of the British competitors of Uber in London, Addison Lee, has been awaiting a TfL decision about a license for a longer term. The company would not comment Friday when a request was sent for one.
Sadiq Khan the Mayor of London said he supported the TfL decision not to renew the Uber operating license.
He added that all companies operating in London have to play by the rules as well as adhere to high standards that we expect of them, particularly when it relates to customer safety.