Transport for London (TFL) strips Uber of its license to operate in London

The American multinational ride-sharing company, Uber, no longer has the license to operate in London as of Monday. According to the report, Uber has failed to clear multiple safety and security tests in recent months that has finally led to the cancelation of its license.

As per the Transport for London (TFL) regulator, as many as 14,000 trips were identified in which the application advertised a different driver than the one who actually picked the passenger. This was due to a security loophole in Uber’s mobile application that enabled unauthorized drivers to upload their pictures to someone else’s account.

Uber Will Continue Operating In London Through The Period Of Its Appeal

Uber spokesperson has already announced that the company plans on appealing against the TFL’s decision. The expected court proceedings are like to go on for months. In the meantime, however, Uber will relish the right to operate within London despite the cancelation of its license.

On the other hand, owing to Uber’s failure to meet the security standards, TFL has declared the service unsafe for the London passengers as many of the rides were identified as uninsured. TFL also stated on Monday that it lacks confidence in Uber’s administration to ensure that such security breaches are not going to be repeated in the future.

Uber’s CEO, Dara Khosrowshahi, commented following TFL’s restriction that Uber intends to introduce an all-new facial matching process that will further strengthen the system that the CEO claims to already be sufficiently robust. He further pointed out that the demand for Uber services is echoed in the way that the company has disrupted business for other similar operators in London like Black Cabs since 2017.

Uber’s Performance In The Stock Market In 2019

Uber’s stock was reported to have dropped by 4% following TFL’s announcement. The loss, however, was quickly regained later in the day. Uber’s performance in the stock market in 2019 has been largely downbeat so far. Printing a year-to-date high of $46.38 in June, Uber has dropped as low as $25.99 as of mid-November.

London’s news is not the only instance of its kind for Uber. The company has previously faced challenges in winning the battle against the regulatory bodies of Copenhagen and Hungary. Lacking conviction, the ride-sharing company is no longer operational in these markets.

An even greater challenge in London is that of the Black Cab drivers who have been protesting against the service, calling it unfair and inferior. Uber, however, has not lost hope. The company pledges to strive in London and appeal strongly against the TFL’s decision in the days to come.