Cogito Ergo Non Serviam

Uber Loses License to Operate in London

The ride-hailing company Uber is losing the right to operate in London effective on September 30 when its current license expires. The regulator, Transport for London (TfL), has declined to renew the license on the grounds that Uber is not "fit and proper" to operate. "Uber's approach and conduct demonstrate a lack of corporate responsibility," said TfL. It is important to understand that TfL is not banning the idea of a ride-hailing app. It is saying that the people at Uber don't measure up.

The Guardian reported that the lack of corporate responsibility related to "reporting serious criminal offences, obtaining medical certificates and driver background checks. The licensing body also said it was concerned by Uber's use of Greyball, software that can be used to block regulatory bodies from gaining full access to its app and undertaking regulatory or law enforcement duties." In other words, it not only cheated, but it acted to make enforcement of the rules harder.

Naturally, Uber and its drivers are upset. In a statement, the company claimed that the decision shows "the world that, far from being open, London is closed to innovative companies. 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."

James Farrar, chair of the Independent Workers' Union of Great Britain's private hire drivers' branch, made common cause with the company, "Rather than banish Uber, TfL should have strengthened its regulatory oversight, curbed runaway licensing and protected the worker rights of drivers. The mayor must call for an urgent independent review of TfL to identify the causes of failure and prevent something like this from ever happening again."

His complaint is not that Uber is innocent, but rather that he disapproves of the punishment. He will be in court next week fighting Uber's appeal of a labor tribunal's decision that gave drivers sick pay, paid holidays and required payment at least equal to the national minimum wage. In short, the tribunal denied that the drivers were independent contractors, rather they are employees entitled to the benefits appropriate to that status.

Kirsty Major wrote in the Independent "Uber tried to get away with pretending it was a neutral software platform for far too long -- all it did was link people together, and its responsibilities went as far as fixing glitches. But it was always a private taxi hire firm. It was a company with employees, who it should have been paying properly from that start, and customers, who it should have been protecting."

So, what does one do if one is out in London after the underground shuts for the night? Black cabs (expensive, but worth every penny) or the night bus (infrequent) used to be the only options. In the 1970s and 1980s, radio cabs arose, private car services dispatched by citizen's band radio. These were the forerunners of Uber and the other ride-hailing services. Ring the number, give the address and destination and wait for the car. With the rise of the mobile phone and apps, these are long gone, but the model remains.

Without Uber, one can still get a ride with Gett, MyTaxi, Addison Lee, Kabbee, and Taxify. So, this isn't about London being a city of Luddites. It's about a corporation with a business model that violated local regulations. One hopes that Uber can get a license some day. For now, however, TfL got the right answer to Uber's model of cheating.

© Copyright 2017 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Ubuntu Linux.



Kensington Review Home