The ridesharing service company Uber can continue its operations in London. It comes as a judge reversed a previous decision from a regulator last year to ban the company for safety concerns.
Uber receives a new license to continue its business in London, one important market for the company. Specifically, they obtained a new transportation license that allows them to operate for 18 months.
Breaking News: Uber can continue operating in London, a judge ruled. It was a critical win for the ride-hailing giant in one of its most important global markets. https://t.co/mzplFkSBdp
— The New York Times (@nytimes) September 28, 2020
According to a deputy chief magistrate, the company had met a “fit and proper” standard. In a New York Times article, Judge Tan Ikram said that the ridesharing services firm addressed those concerns posed by regulators regarding passengers’ safety. Particularly, it includes banning unauthorized and uninsured drivers in their platform.
The judge ruled that although the company “does not have a perfect record,” Uber remains improving. He noted the satisfactory actions Uber had taken.
Access to the London Market
The American ridesharing company had its license in London removed twice. In 2017, the company lost its license in the city and then appealed the ruling. Later, they received permission to operate for 15 months. Last year, the company again lost its taxi license in London over safety concerns. Particularly, regulators noted Uber failed to maintain safety for passengers. The Transport for London said that Uber allowed unauthorized drivers to carry passengers through its platform. And the ban ends with the new ruling.
If Uber failed to regain its license in the city, it could lose access to one of its very crucial markets to operate in. The company claimed that millions of users in London take advantage of their app on a regular basis, CNN Business reports. Moreover, it said that they have about 45,000 drivers in the city.
Commitment to Safety?
With the new permission, Jamie Heywood said the decision recognizes the company’s commitment to safety. Heywood serves as the regional general manager for Uber in the Northern and Eastern Europe. “We will continue to work constructively with [Transport for London].”
However, in a CNN Business report, the general secretary of the Licensed Taxi Drivers’ Association, Steve McNamara, frowned upon the ruling. “Uber has demonstrated time and time again that it simply can’t be trusted to put the safety of Londoners, its drivers, and other road users above profit. Sadly, it seems that Uber is too big to regulate effectively, but too big to fail,” McNamara stated.
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