Uber Kicked Out of London

Transport for London (TfL) have announced that Uber’s licence to operate in London will not be renewed. That means their service will terminate in a few weeks and 40,000 drivers will be put out of work. There are as many as 3.5 million Uber users in London and a petition to reverse the decision has already been established on Change.org which has collected 450,000 signatures in about 24 hours – see https://www.change.org/p/save-your-uber-in-london-saveyouruber

TfL, supported by Mayor Sadiq Khan, claim Uber is not a fit and proper organisation to hold a license due to its failure to report incidents, failures on vetting drivers and other grounds. Uber have 21 days in which to appeal, and no doubt there will be a legal challenge as well if TfL do not back down.

TfL previously announced that license fees for Uber to operate in London will rise from £3,000 to £3 million for a 5-year license, so it is clear that the Mayor is attacking Uber via more than one channel. Why is he doing this? It is clear from the Mayor’s recently published Transport Strategy (see http://www.freedomfordrivers.org/against-mts.htm ) that Private Hire Vehicles (PHVs) such as Uber operate are contributing to traffic congestion in London in a big way. But it is also clear that the Mayor objects to all private vehicles whether you drive them or someone else drives them for you.

Are there alternatives to Uber? Lyft is a big similar operator in the USA but does not operate in London yet. Taxify launched in London recently but then had to suspend operations after TfL queried its license. There is a service called Hailo that operates to call conventional taxis (don’t bother trying to use it in outer London though in my experience), and numerous local PHV operators plus larger operators such as Addison Lee who have a ride hailing app.

Comment: I am not totally convinced that the allegations against Uber are serious enough to warrant refusal of a license. Perhaps Uber should up its game in several areas, but is it any worse than other PHV operators? As a relatively new service, with lots of new drivers, there are likely to be some teething problems. Other penalties could surely have been considered. For example, a grant of a new license for a limited period on certain conditions being met.

I have used Uber a few times and the service is both efficient and low cost (Uber loses money in a big way I understand). For example, I called Uber recently to take my wife home at 3.00 am in the morning from an outer London hospital. The driver arrived in about 3 minutes. Great service at very reasonable cost.

Many people will see this act by the Mayor for what it is. A simple attack on a service that the Mayor and those in TfL would like to put out of business so that people have to walk, cycle or use public transport (i.e. use many less safe alternatives) if you read his Transport Strategy. That is why the ABD is so opposed to it.

It is true that the number of PHVs is contributing to traffic congestion, but there are other ways to ration their numbers and usage (e.g. on price).

I recommend that you sign the petition, as I shall be doing.

Roger Lawson

Twitter: https://twitter.com/Drivers_London

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One thought on “Uber Kicked Out of London

  1. Pingback: Interest Rates and the Gig Economy – Roger W. Lawson's Blog

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