Fears are growing that Uber could be booted out of major UK cities in the wake of London’s controversial decision to strip the taxi hailing app of its licence.
Transport for London (TfL) confirmed yesterday that they would not be renewing Uber’s licence at the end of the month due to concerns they are failing to report crimes carried out by its drivers.
The firm, which employs more than 40,000 drivers in London and has 3.5 million customers in the capital, has slammed the decision and said it will appeal.
But it also fears the move will encourage other authorities across the UK to launch their own crackdown.
Uber’s private hire licence will not be renewed after a bombshell decision by TfL today
A black cab driver celebrates outside Paddington station yesterday after the decision to strip Uber of its licence in London was announced
More than 140,000 people have signed a petition calling for the decision to be reversed
Major cities including Liverpool, Manchester and Newcastle have said they are monitoring the situation.
Liverpool mayor Joe Anderson said he ‘remains convinced that deregulation of the taxi trade is hurting competition, preventing licensing authorities from doing their jobs’.
He added that Liverpool City Council will keep an eye on what happens in London and could take action.
Uber’s licence to operate in Manchester is not up for renewal until 2021 but the council’s executive member for neighbourhoods, Councillor Nigel Murphy, said they will be monitoring the situation.
This approach echoes what Bristol and Newcastle have said.
In Brighton, taxi drivers have urged the council not to renew Uber’s licence. The city’s MP, Caroline Lucas, welcomed TfL’s decision.
She said: ‘#Uber business model irresponsible to the core. Hope @Uber ups game & shows more corporate responsibility #gigeconomy.’
A spokesman for Cardiff City Council said there was no evidence to suggest Uber was breaching the terms of their licence in the city.
Meanwhile, a petition calling for TfL to reverse their decision has been signed by nearly 500,000 people in less than 24 hours.
The petition, started by Uber London, says: ‘By wanting to ban our app from the capital, Transport for London and their chairman the Mayor have given in to a small number of people who want to restrict consumer choice.
Transport for London announced the decision in this tweet, which is said to have been posted just one minute after it informed the firm
The decision is another setback for the firm, which has previously been banned by other cities
‘If this decision stands, it will put more than 40,000 licensed drivers out of work and deprive millions of Londoners of a convenient and affordable form of transport.
‘This decision is affecting the real lives of a huge number of honest and hard-working drivers in London.’
Critics of Uber – which boasts more than 5 billion passengers in over 630 cities worldwide – insist it has failed to properly vet its drivers and is an example of the so-called ‘gig economy’ that gives workers no employment rights.
Worried Uber drivers and angry passengers yesterday joined a growing chorus of criticism – with delighted cabbies rejoicing at the potential downfall of their fiercest competitor.
Father-of-three Bangalie, who has been driving for the company for almost a year, fears he could be forced to claim benefits if Uber’s appeal is not successful.
He said: ‘My family are worried about the future of my job, even if I go on benefits I will not get the same amount of money.
‘I have bills and rent to pay and mouths to feed, if I cannot do that there is going to be a problem. I could be signing up for job seekers in less than two weeks time.’
Passenger Lucy Williams, 30, from London, said: ‘It’s terrible, I get Ubers like three times a week and they’ve saved me a lot of money from black cabs.’
But black cab driver Kenneth Stein, 54, said: ‘I have nothing against Uber drivers but we as black cab drivers are regulated to the hilt while they have next to no regulation.’
Uber said in a statement that the decision would ‘show the world that, far from being open, London is closed to innovative companies’. The firm’s current licence expires on September 30.
As part of their fightback, they are emailing all of their members individually to urge them to sign the petition.
Many Londoners took to Twitter to complain about the TFL decision
Others welcomed the decision by the city’s authorities, saying the company was dangerous
But the firm has faced a barrage of criticism in recent years over the safety of customers, working rights for drivers and opposition from black cab drivers.
TfL concluded that the minicab app is ‘not fit and proper’ to operate in the capital due to concerns which have ‘public safety and security implications’.
Transport for London said: ‘TfL considers that 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.’
Mayor of Sadiq Khan, who was not involved in the decision but supports it, said: ‘All companies in London must play by the rules and adhere to the high standards we expect – particularly when it comes to the safety of customers.
‘Providing an innovative service must not be at the expense of customer safety and security.’
Confirming Uber would appeal against the decision in court, Tom Elvidge, the firm’s general manager in London, said: ‘3.5 million Londoners who use our app, and more than 40,000 licensed drivers who rely on Uber to make a living, will be astounded by this decision.
‘By wanting to ban our app from the capital Transport for London and the Mayor have caved in to a small number of people who want to restrict consumer choice.
‘If this decision stands, it will put more than 40,000 licensed drivers out of work and deprive Londoners of a convenient and affordable form of transport.
‘To defend the livelihoods of all those drivers, and the consumer choice of millions of Londoners who use our app, we intend to immediately challenge this in the courts. ‘
He added: ‘Uber operates in more than 600 cities around the world, including more than 40 towns and cities here in the UK. This ban would show the world that, far from being open, London is closed to innovative companies who bring choice to consumers.’
The firm’s complaints were backed by London First, which campaigns for business in the capital.
The group’s David Leam said: ‘This will be seen as a Luddite decision by millions of Londoners and international visitors who use Uber, and will also hit London’s reputation as a global tech hub. London needs to be open to new ideas, businesses and services.’
But Labour MP Wes Streeting, chairman of the All Party Parliamentary Group on Taxis, welcomed the decision, which he said would ‘draw a line in the sand’.
The Ilford North MP added: ‘Uber has not shown itself to be a fit and proper operator.
‘It stands accused by the police of failing to properly handle serious allegations of rape and sexual assault of passengers.
‘It had to be dragged through the courts to recognise its responsibility to provide even the most basic rights and protections to Uber drivers.’
The number of private hire drivers in London has almost doubled to more than 116,000 from 65,000 in 2013/14.
Drivers of traditional black London cabs held a protest this year against the minicab app. The app was seen as unfairly undercutting black cabs due to the lack of regulation of drivers
Uber driver James Farrar said: ‘This is a devastating blow for 30,000 Londoners who now face losing their job and being saddled with unmanageable vehicle-related debt.
‘To strip Uber of its licence after five years of laissez-faire regulation is a testament to a systemic failure at TfL.
‘Rather than banish Uber, TfL should have strengthened its regulatory oversight, curbed runaway licensing and protected the worker rights of drivers.’
The GMB union handed in a petition with 100,000 signatures on Monday to TfL, calling on Uber to improve workers’ rights or ‘get out of London’ ahead of the licence decision.
How Uber’s reputation has been tainted by a series of cases where drivers have attacked passengers
The reputation Uber has gained for dangerous drivers has come from a series of court cases in the capital.
Scotland Yard criticised the firm after it emerged it failed to report 48 serious crimes.
In July, 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 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 assaulted 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.
Earlier this year, mother Annastazia Merrett claimed she suffered a black eye in a racist assault by an Asian Uber driver who called her a ‘white b****’.
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
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
This summer, 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.
Will the ban go elsewhere in the UK? City authorities in other parts of the country show little appetite in taking on the global firm
UK cities where Uber operates said they were watching the London situation but had no plans to follow TfL’s example.
Uber operates in 20 locations in the UK and Ireland outside of the capital, according to its website.
The travel app service launched in London in July 2012. Other cities and regions followed, including Glasgow and Edinburgh in November 2015, Belfast the following month and Cardiff in April 2016.
Other locations include Birmingham, Nottingham, Bristol, Leeds and Brighton.
A traditional London taxi and a private hire cab on the streets of London today. Uber cars may be off the streets of the capital as soon as mid-October if the company’s planned appeal fails
Bristol City Council said it would ‘keep a close eye on the outcome’ of the dispute with TFL.
A spokesman added: ‘While we note the reasons TfL have given for not renewing Uber’s licence, both Uber and their drivers fully comply with all aspects of Bristol’s licensing policy.
‘On that basis, there is no evidence to review their current licence but we will continue to monitor the situation.’
In Manchester, the city council’s executive member for neighbourhoods, Nigel Murphy, said its licensing system was ‘robust’ for all private hire vehicles and taxis.
He added: ‘Uber Britannia – which is a separate company to Uber London – is licensed to operate in Manchester until 2021 as a private hire operator.
‘As is the case with all licensees, we will continue to monitor their compliance with the conditions of their licence to operate while at the same time monitoring events as they unfold in the capital.’
Uber was refused the right to run a pilot operation with private cars in Ireland this year.
Although the ride-sharing company first appeared in the Republic about three years ago, it was told by regulators that its proposal for Limerick city would be illegal.
‘If anyone suggests I’ll have to speak to taxi drivers again I’ll have a tantrum!’ Black cab drivers are happy but most Londoners are appalled at the thought of living in the capital without Uber
The internet has reacted with a mixture of astonishment and hilarity to the shock news that Uber has been stripped of its licence to operate in London.
This morning Transport for London (TfL) announced the firm – which has between 30,000 and 40,000 drivers – would be barred from working in the city due to ‘its approach to reporting criminal offences’.
Critics have blasted the move, claiming they will be unable to afford late-night lifts home and said it will put thousands of drivers out of work.
The decision got a mixed response from Londoners, with some welcoming the support for traditional black cabs, but others saying they will struggle to get around without the app
But those who back the decision say Uber failed to properly vet its employees and criticised their record on employment rights.
Uber has already said they will appeal the decision.
Within minutes of the news breaking, memes started appearing on Twitter with the hashtag #uber.
One user tweeted a picture of a black cab driver along with the caption: ‘Uber are getting kicked out of London? Back to: ‘End of the road? £25 mate.”
Another user posted a picture of The Only Way is Essex star Gemma Collins with a glass of wine with the words: ‘Live scenes from the black cabbies conference.’
And one posted a picture of Monica and Rachel from Friends, along with the word, ‘noooo’.
Actor James Franco, TV host Steve Harvey and even a South Park character all featured as the internet reacted to new Uber’s London licence had been stripped
This was joined by a caption reading: ‘How’re we going to get places now!? If anyone suggests I’ll have to speak to taxi drivers again I’ll have a tantrum.’
Many jokes focussed on black cab drivers and the presumption they will now see a huge upswing in business now that their main competitor has been driven out of London.
One tweet showed a picture of Tom Cruise’s character in Jerry Maguire saying the famous catchphrase ‘show me the money’.
That was joined by a caption that said: ‘Black cabbies right now at the news on #uber in London.’
One user posted a gif of a toddler on the floor having a tantrum alongside a crying face emoji.
Many jokes focussed on black cab drivers and the presumption they will now see a huge upswing in business now that their main competitor has been driven out of London
Uber said in a statement that the decision would ‘show the world that, far from being open, London is closed to innovative companies’. The firm’s current licence expires on September 30.
The firm has faced a barrage of criticism in recent years over the safety of customers, working rights for drivers and opposition from black cab drivers.
But the internet’s response was a lot more light-hearted.
Another tweet showed an animated GIF of a dancing man with the caption ‘black cab drivers right now #London #Uber.’
One user tweeted, ‘TFL: You can not operate without a licence. It’s the law.’
That was juxtaposed with a picture of a South Park character embossed with the words, ‘I am above the law!’
Another posted a picture of a confused looking James Franco accompanied with the words ‘*Phone notification* ‘Uber has been banned in London.’
End of the gig economy or an attempt to ‘switch off the internet’? Parliament divided by unexpected decision
The decision not to issue Uber with a new licence to operate in London has split politicians with supporters of the move claiming it could be a ‘game changer for the gig economy’ but critics claiming the the capital was turning its back on ‘free trade and innovation’.
Work and Pensions Committee chairman Frank Field said Uber must respond to the decision by ‘resetting its business model’ to offer a safe and reliable service with fairer conditions for drivers.
But Conservative MP Chris Philp said it was a ‘shocking misjudgment’ by London mayor Sadiq Khan to support the decision to effectively ban the minicab app.
Fellow Tory Tom Tugendhat claimed Mr Khan was a ‘luddite’ who wanted to ‘switch off the internet’ following the Transport for London (TfL) decision.
Labour MP Mr Field said: ‘This could be a game changer for the gig economy.
‘Uber must now respond to TfL’s decision by totally resetting its business model.
‘This new model will need to be built upon two foundations: a safe and reliable service for every passenger; and a living wage and fairer conditions for every driver who makes themselves available for work.’
London mayor Sadiq Khan came under fire from critics of the decision today
But Croydon South MP Mr Philp told the Press Association: ‘I very strongly oppose what Sadiq Khan has done.
‘There are issues Uber needs to address, but by outright banning them in London it’s going to put 40,000 people out of work and 3.5 million Londoners are going to pay higher fares.
‘The people most affected are going to be people on low incomes who can afford to take an Uber but can’t afford to take a black cab.’
He added: ‘Sadiq Khan is sending out a message that London is not interested in free markets and not interested in innovation and that is a terrible message for Sadiq Khan to be sending, particularly given everything else that is going on with Brexit
‘It’s a shocking misjudgment by the mayor of London.’
Senior MP Mr Tugendhat, the chairman of the Commons Foreign Affairs Select Committee, said Uber has problems but ‘banning them is a vote against choice’.
Green Party joint leader and Brighton Pavilion MP Caroline Lucas welcomed TfL’s decision and hoped that her city would follow London’s example.
She said: ‘We need to see more corporate responsibility in the gig economy.’