The mayor of London was at the centre of a public backlash after transport authorities banned Uber from operating in the city.

More than 375,000 people signed a petition yesterday calling on Sadiq Khan to overturn a decision to strip the world’s biggest ride-hailing app of its licence. Uber had emailed customers urging them to support the protest.

Business leaders reacted by saying that London was being run by “Luddites” and creating an impression that it was closed to innovation.

Transport for London (TfL), which is chaired by Mr Khan, was accused of “cronyism” by bowing to pressure from trade unions and black cab drivers who have waged a campaign against Uber for years.

The decision also placed the future of the company’s tens of thousands of drivers in London under threat.

TfL said that the company, which is used by 3.5 million people in London — more than any other European city — and offers a cheaper service than black cabs was no longer a “fit and proper” operator. It accused Uber of failing to report serious criminal offences, check drivers’ criminal records or ensure drivers were medically fit.
Last month Inspector Neil Billany of the Metropolitan Police suggested that the company was putting its reputation before public safety by allowing a driver to continue working despite his facing a sexual assault allegation.

Uber said it was “astounded” by yesterday’s ruling, which is due to come into force at the end of next week, and vowed to lodge an appeal that will be heard by Westminster magistrates’ court within 21 days, giving the company a stay of execution. Any refusal to reinstate its licence will prompt an appeal to a senior court, raising the prospect of a lengthy legal battle.

Tom Elvidge, general manager of Uber in London, said: “By wanting to ban our app from the capital Transport for London and the mayor have caved in to a small number of people who want to restrict consumer choice.”

The ruling puts the jobs of 40,000 drivers in jeopardy, although some will find work with other ride-hailing apps such as Gett and Addison Lee.
It is understood that the decision to revoke the licence was taken by a board of officials within TfL’s licensing department. It is almost certain that it was signed off at a senior level, possibly by Mike Brown, the commissioner.

Sadiq Khan said the taxi company needed to “play by the rules”

A spokesman for Mr Khan said that he was legally barred from playing any part in the decision.

However, within minutes of it being announced he gave his backing to TfL, saying “any operator of private hire services in London needs to play by the rules”.

Many passengers, however, vowed to boycott London’s 20,000 black cabs, sharing the hashtag #boycottblackcabs on social media. Sam Dumitriu, research economist at the Adam Smith Institute, said: “The only people that will benefit are the black cab lobby who have crushed a competitor through cronyism, rather than providing a better service.”

Mark Littlewood, director-general of the Institute of Economic Affairs, said that the decision was “an assault on drivers and customers alike, and a victory for protectionism”.

David Leam, director of infrastructure at London First, the business group, said: “This will be seen as a Luddite decision by millions of Londoners who use Uber and will also hit London’s reputation as a global tech hub.”

Mr Khan is likely to be praised by union leaders when he speaks at the Labour conference next week. Wes Streeting, Labour MP for Ilford North and chairman of the parliamentary group on taxis, described it as a “courageous decision”.

Appy to be of service, but how much do they cost?
Alternative apps to Uber in London, with fare estimates for a six-mile trip from central to north London at 6.30pm last night. Compared to Uber estimate of £14 - £19.

Mytaxi Formerly Hailo, allows black cabs to be hailed with smartphone. Cut fares by 50 per cent yesterday. No estimate offered.

Gett New app of choice for black cab drivers is setting up a taxi-bus service with Citymapper, creating a flat-fare service for a fixed route. Gett also operates outside London. £29.19 for last night’s journey.

Addison Lee One of London’s oldest private hire firms launched an app in response to Uber, but not available outside London. £22.85 for last night’s journey.

Kabbee Acts like a comparison site for minicab firms, comparing 70 licensed providers. It describes itself as 65 per cent cheaper than a black cab. £20.80 for last night’s journey.

Lyft Minicab app that is a big player in the US, where it competes with Uber. No service in the UK yet. $24.23 (£17.92) for six-mile journey in New York from Lower Manhattan to the Upper West Side at 6.30pm EST last night.

• A French court fined Uber for running an illegal transport service, UberPop, which connected users with non-professional drivers using their own cars.

• Denmark passed laws requiring cabs to be fitted with seat occupancy sensors and fare metres.
• In China Uber was bought out by a local rival, Didi Chuxing.

• Regulators in the Northern Territory, Australia, imposed large licensing fees on drivers.

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Uber’s future across the UK was thrown into doubt last night after councils confirmed that they would consider the outcome of the decision to bar the company in London.

Experts said that the ruling could have a knock-on effect because licensing authorities were almost certain to be influenced by the ruling that Uber was “not fit and proper” to operate.

The cab-hailing app has expanded to 40 towns and cities, including Manchester, Birmingham, Cambridge, Newcastle, Leeds, Liverpool, Nottingham, Leicester, Sheffield, Stoke, York, Glasgow, Edinburgh, Belfast and Cardiff.

Decisions on whether to ban the app will be taken by individual councils, which are responsible for regulating the local minicab and taxi trade. Rulings on Uber will be made when its existing licence comes up for renewal in each town and city.

The Local Government Association said yesterday that existing legislation governing minicab licences was inadequate, leaving authorities powerless to properly regulate the industry.
In July, the Department for Transport pledged to set up a working party to look at guidance given to local authorities. It raises the prospect that councils could be forced to raise the bar on expectations put on companies such as Uber which often operate thousands of minicabs in the same city.

Alex Janes, a senior lecturer at the University of Exeter business school, who has researched Uber, said: “Uber always saw London as a bellwether market for them. A lot of other places look to London’s decision and it wouldn’t surprise me if this was to have a knock-on effect.

I would be very surprised if Birmingham, Brighton, Liverpool or Manchester didn’t unpick it and ask, ‘is this any different to the situation affecting us?’”

Chris Hargreaves, from Licensed Transport Uncovered, a consumer group, said: “If Uber are not seen as fit and proper to hold a licence in London, how can they be deemed fit and proper elsewhere?”

Cambridge city council, which will review Uber’s existing one-year licence in December, told The Times yesterday: “We will look closely at the detail of TfL’s decision and the likely appeal Uber has indicated it will lodge against that decision before considering Uber’s operator licence in Cambridge.”

Bristol council said any decision to license Uber in the city would be taken independently of the decision in London, but added: “We will keep a close eye on the outcome and any legal challenge of TfL’s decision.”

Manchester council, which has licensed Uber up to 2021, said it would “continue to monitor their compliance with the conditions of their licence to operate, while monitoring events as they unfold in the capital”.

Brighton council insisted there was nothing to stop Uber operating on the south coast but added: “We are aware of [the] decision by TfL and will be considering over the coming days what potential implications this might have.”

Nottingham council, which has licensed Uber up to 2020, said: “We will bear in mind the concerns of TfL and assess whether these impact Nottingham, but at present we have no intention to review Uber’s licence early.”

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