Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Uber's London license appeal to be heard next year

Published 12/11/2017, 07:19 AM
Updated 12/11/2017, 07:19 AM
© Reuters. FILE PHOTO: A photo illustration shows the Uber app on a mobile telephone, as it is held up for a posed photograph, in London

By Costas Pitas

LONDON (Reuters) - Uber [UBER.UL] will defend its right to operate in London in court next year after the app was deemed unfit to run a taxi service and stripped of its license in its most important European market.

Regulator Transport for London (TfL) shocked the Silicon Valley firm by rejecting its license renewal bid in September, citing its approach to reporting serious criminal offences and background checks on drivers.

Uber's 40,000 drivers, representing around one in three of all private hire vehicles on the British capital's roads, can continue to take passengers until the appeals process is exhausted, which could take years.

The legal battle pitches one of the world's richest cities against a tech giant known for its forays into new markets around the world that have prompted bans, restrictions and protests, including by drivers of London's famous black cabs.

At a case management hearing on Monday, the chief magistrate at Westminster Magistrates' Court Emma Arbuthnot said she hoped to hear the appeal over five days from April 30, although the start date could be pushed back due to scheduling clashes.

Further hearings will take place next week to decide whether the GMB trade union and the London Taxi Drivers' Association can participate in the case.

Months of further legal wrangling are likely unless the app, valued at around $70 billion with investors including Goldman Sachs (N:GS), can come to a new arrangement with the regulator.

Chief Executive Dara Khosrowshahi has apologized to Londoners and met TfL Commissioner Mike Brown in October for what both sides described as constructive talks.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Brown told Reuters in November that "there are some discussions going on to make sure they are compliant."

"We continue having constructive discussions with Transport for London in order to resolve this," an Uber spokesman said ahead of Monday's hearing. "As our new CEO Dara Khosrowshahi has said, we are determined to make things right."

Losing its London license was just one of many blows to Uber this year as a stream of executives left amid controversies involving allegations of sexual harassment and issues surrounding data privacy and business practices.

In Britain, Uber is looking to appoint a new boss after Jo Bertram announced her departure less than two weeks after London's decision.

It also faces potential problems in the northern English city of Sheffield where its license has been suspended and in Brighton, southern England, where local officials extended the firm's license for only six months to give them more time to consider the outcome of the dispute in London.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.