Uber has been having an extremely rough ride throughout the year, and the last two months of 2019 don’t seem to be doing the company any favors either.
Last month, the ride-hailing tech firm lost its license to operate in London, this being the second time they’re losing their license in as many years.
If the decision to deny them the liberty to operate in the British city sticks, then the company could be headed down an extremely slippery slope.
A Revolutionary Service
To their credit, Uber has revolutionized the cab industry. Gone are the days when you’d have to stand on the sidewalk and yell for a taxi driver to recognize your presence. Why go through all the trouble when you can order a ride at the tap of your smartphone screen?
In a considerably short period of time, Uber has grown into a global brand. The thing with such startups is that they show exponential growth almost immediately after being launched, and by the time the regulatory bodies are catching up, the service has already carved out a niche for itself.
Such is the challenge Uber is currently facing, as The Telegraph reported. The local government body that oversees transport in the United Kingdom’s capital, Transport for London, is declining to renew Uber’s license to operate in the city, and the company is currently facing a potential ban from future operations in London.
Naturally, the legal team at Uber has already filed an appeal to counteract the transport body’s decision. However, should they be on the losing end of this adjudication, Londoners can kiss Uber services goodbye. You reckon they’d be pissed, right?
And while missing ride-hailing services may be inconveniencing to consumers, the London license revocation could have a greater effect on the entire company.
Soon as news of the declined license renewal application hit the news, the company’s stock took a hit, dropping in value by over 6%.
Unfortunately, an appeal is the only thing they can do to try and remedy the situation, but in all honesty, the odds are stacked against them.
One of the reasons why Transport of London is withholding the company’s license is because there have been safety concerns.
A change in the company’s systems allowed many unauthorized drivers to impersonate their fellow authorized counterparts by uploading their images in the authorized Uber driver accounts, and pick up passengers under this guise.
According to Transport of London, this irregularity reared its ugly head in over 14,000 Uber trips, and they say that the company put all these passengers at risk.
For starters, all of these trips were uninsured. If anything could have happened to the passengers while on the journey, they would have received no compensation.
Additionally, some of the drivers who took these trips were unlicensed, and you get why that could be a death wish on the road, don’t you?
The local government body also cited another system failure that allowed drivers who had either been dismissed or were on suspension to resume their normal ferrying activities.
Armed with all these allegations, Transport of London deems the raid-hailing company unfit for service in London.