Uber has lost its licence in London, again

Following a formal assessment, Uber will no longer be allowed to operate in London after 14,000 rides were taken with uninsured drivers in 2019 so far.

Getting about in big cities has changed considerably over the last five years or so, thanks to a meteoric rise in on-demand taxi services. Apps such as Uber allow anyone with a smartphone to order a ride wherever they are in real time, with a car usually pulling up to your location within five minutes. It’s quick, easy, and cheap – all qualities that fit Millennial and Gen Z lifestyles nicely.

All of that convenience doesn’t come without compromise, however. Uber in particular has faced scrutiny from governments and traditional taxi companies for failing to efficiently regulate its services, offering subpar safety standards, and underpaying its drivers. Nowhere has this been more prevalent than in London, where Uber has already had its license removed once and was given a temporary extension to try and improve back in 2017.

That, apparently, hasn’t happened. Uber has now had its license revoked for a second time following a ‘string of failures’ according to Transport for London. It will appeal the decision, and can continue to run until the final outcome, but as things currently stand the company will no longer be allowed to operate in London.

Why is this happening to Uber?

Put simply, Uber has a business model that is near impossible to fully regulate and keep track of. For several years, each driver was considered a self-employed ‘partner’, which meant that they were not entitled to sick pay, annual leave, or the National Living Wage.

An employment tribunal ruled that all of Uber’s drivers in the UK, of which there are 40,000, are not working freelance and are, in fact, employees. This was contested at the end of 2018 by Uber but it lost its appeal, meaning that UK drivers now actually have some rights. Which is a good thing.

However, the sheer number of drivers under the Uber name, and the lack of rigorous training and license practices that traditional taxi services use, means many incorrect or unsafe trips can easily occur without the company knowing. A security lapse in Uber’s database in 2018 allowed anyone to upload their own photos onto other people’s accounts and, as a result, over 14,000 trips have since been taken by uninsured or incorrectly identified drivers. It’s a bit of a hot mess, basically.