Uber just can¡¯t seem to catch a break these days. In another major blow to the company, London on Friday stripped the ride-hailing service of its license to operate, starting next week.
It¡¯s a huge financial blow to not just Uber, but also its estimated 3.5 million users in the city.
The surprise, however, came with Uber¡¯s response to the news, with new CEO Dara Khosrowshahi instead pleading with the city to work with the company, as well as having the London arm asking its users to sign a petition to have them reinstated.
It¡¯s clear shift away from the company¡¯s previous combative stance under ex-CEO Travis Kalanick, though Khosrowshahi did maintain they were innocent of the accusations. However, it may be a little too late for Uber to play nice.
London¡¯s transport authority said Uber¡¯s conduct was not fit to hold a vehicle hiring license, and the company¡¯s services would not be renewed when it expires Sept 30. However, the city is letting the company operate until the appeals process is completed, one that could take months as 40,000 Uber drivers fight to save their livelihood.
¡°Uber¡¯s approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications,¡± the transport authority said. In particular, it was referring to Uber¡¯s failure to report criminal offences by its drivers, as well as lax background checks.
Also playing a part in the decision was Uber¡¯s Greyball fiasco, where it came to light the company was using a software of that name to block regulators from gaining full access to the app. Of course it didn¡¯t help that Kalanick himself, with his statements and off-camera antics, constructed for the company an image of an unsympathetic, combative corporation only looking to grab some cash.
Eventually, Kalanick was forced to resign by Uber¡¯s board of directors, after a string of scandals and controversies that finally broke the proverbial camel¡¯s back. In the course of one week in June, Uber was accused of ignoring complaints of sexual harassment and discrimination in the workplace, illegally obtaining medical records of a woman raped by an Uber driver, and intentionally causing major salary discrepancies between employees through its hiring and processes.
Uber has an incredibly large operation here, around 250,000 drivers in 26 cities. But don't worry, it¡¯s not likely the company is in any real danger of losing its license over here.
Despite a few Uber drivers in the country having been involved in rape cases, while on the job, Uber's cab hailing services didn't see any interruption in any Indian state. Indeed, one of those rape cases in 2014 was part of the reason Kalanick was forced out. Uber¡¯s senior VP Emil Michael, as well as other executives, were sceptical of the victim¡¯s claims that she was raped by her Uber driver. Instead, they believed it was a corporate sabotage attempt by Ola and therefore illegally obtained the medical records of the victim.