Uber allowed to operate in London again after judge overturns ban
Uber allowed to operate in London again after judge
overturns ban
Uber was granted a 15-month license to operate in London,
with some broad conditions.
The ride-hailing firm will have to provide regulators
with the results of an independent review into procedure and safety every six
months.
By Arjun Kharpal and Sara Salinas June 26, 2018 CNBC.com
Uber can continue operating in London after a judge
overturned a ban in the U.K. capital on Tuesday.
Uber was granted a 15-month license, with some broad
conditions. The ride-hailing firm will have to provide regulators with the
results of an independent review into procedure and safety every six months. It
will also have to update UK regulators about any relevant changes to company
policy or governance.
The regulatory agency Transport for London (TFL) accused
Uber last year of showing a "lack of corporate responsibility" in
relation to "public safety and security," and failed to renew a
license that would allow the U.S. ride-hailing service to operate in London.
Uber had been allowed to continue its business in London while it appealed last
October's ban.
At the end of a two-day hearing at Westminster
Magistrates’ Court, Judge Emma Arbuthnot ruled Tuesday that Uber could operate
in one of its most important cities. A shorter, 15-month license would allow
Uber and the regulatory agency to "test out the new arrangements,” Arbuthnot
said after the ruling.
London is one of Uber's most crucial markets. More than
3.6 million people in London regularly use the Uber app, and around 45,000
drivers use the service.
“We are pleased with today’s decision. We will continue
to work with TfL to address their concerns and earn their trust, while
providing the best possible service for our customers," Tom Elvidge,
general manager for Uber in the UK, said in a statement.
Through the hearing, Uber was accepting of its past
mistakes. The ride-hailing app’s lawyer said that TFL’s 2017 ruling pushed the
company to make changes.
These included reporting serious incidents to the police
rather than leaving it up to riders and drivers to do so. In January, it
introduced a mandatory six-hour safety break for drivers after 10 hours of
work.
The judge ruled Tuesday that Uber must provide training
for drivers, complicating the company's stance that drivers are contract
workers and not employees. Uber will have to 48 hours to report and deal with
safety complaints about its drivers, and it will have to notify authorities
whether a driver is being kicked off the platform.
In the decision, the judge praised Uber's efforts to
change corporate culture, noting CEO Dara Khosrowshahi met with directors for
the TFL in October of 2017 and apologized for past corporate behavior, which
included trying to cover up a data breach in 2016.
Khosrowshahi took over the reigns last year from founder
Travis Kalanick, whose leadership was fraught with scandals involving
allegations of sexism and bullying. Khosrowshahi has been cleaning up the
company, focusing particularly on rider experience and workers' rights.
He told CNBC in a recent interview that Uber is on track
to go public next year.
—CNBC's Kate Fazzini and Lora Kolodny contributed to this
report.
Comments
Post a Comment