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Uber’s License Woes with Transport for London

Uber ride-sharing License Woes with Transport for London new urban mobility plan

Comment by Frost & Sullivan’s Shwetha Surender, Industry Principal, Mobility Group

 

LONDON, Sept. 26, 2017 /PRNewswire/ — Exciting times in the world of mobility, with TfL’s bold move last week. TfL’s decision to strip Uber of its license came as a surprise to the market. Their main contention was:

  • the lack of safety norms; in particular, insufficient background checks that Uber employs with its driver partners; and
  • possible use of the Greyball programme that does not give regulators a clear picture of operations.

Uber in Europe

Uber will be appealing the decision and has a petition underway. Dara Khosrowshahi, Uber’s newly appointed CEO has already issued an apology, which seems to be well received by the Mayor of London as TfL will soon be opening a dialogue with the company.

Uber has not been favourably regarded by a number of cities across Europe, and potentially, this move by London, a city that until recently was quite supportive of Uber, could signal the first in a series of renewed regulatory pushback against the company.

Mobility Sharing Services

It is too early to say whether or not the move will stifle innovation. Mayor Sadiq Khan maintains that the city will continue to support new mobility projectsLondon is encouraging new business models such as demand responsive shuttles and bike sharing.

However, a point to consider is that car-sharing growth has not been as prolific in London as it has in other cities; in part due to limited government support. Addison Lee‘s license is under review as well, with a move to increase the fee for operating private hire vehicles.

London’s attitude toward Lyft (if it does enter the city) and other asset light models like Deliveroo and Hermes could be an indication of the City’s future tone toward disruptive business models.”

To find out more, or to schedule an interview, please email Anna Zanchi, Corporate Communications: anna.zanchi@frost.com

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion

SOURCE Frost & Sullivan

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