Uber, the largest cab-hailing service provider is facing ouster from one of its largest market, London. The Silicon Valley tech major was denied a license renewal request back in 2017 due to the company’s failure to report serious criminal offences and conduct driver background checks.
Transport for London (TfL) rejected the company’s request for license renewal but luckily for the company, a London court granted it a probationary 15-month license, which expires on Sept 25. According to a Gadgets360 report, Uber had to make significant changes to the app and its functioning in London which it considers as one of the major markets in Europe.
Interestingly, this time around, Uber is more cautious about the situation as compared to the last time. The reason behind this is Uber’s major competition with its Indian counterpart Ola. Ola is an Indian unicorn valued at over $6 billion and is already in the race to become one of the largest ride-hailing services in the world.
In London, Ola ventured into last year and they received a 15 months license. Considering this, Uber might also get a short term license (if it gets a renewal). Although the company’s compliances have changed according to the city regulator’s demands, the license term doesn’t seem to change.
The London City Mayor Sadiq Khan is a tough administrator as it seems. The Mayor has said numerous times that he wants to take a stand against all the big boys (large corporates) who try to play on their money and power terms. Mr Khan has said that he will not care if the company does employ numerous lawyers or spend a huge budget on its PR budget. These corporates need to abide by the rules like everyone else and that is better for the city too.
The company has faced numerous such acquisitions in other major global markets as well especially in India. It has been noticed that Uber has been involved in cases of sexual harassment by the drivers, loot and accidents where it has not taken substantial actions.