UBER UPDATE
Following three days of arguments in Westminster Magistrates’ Court last month, on Monday 28 September Uber London Ltd was granted an 18-month licence to operate private hire vehicles in the capital.
UBER WINS LONDON OPERATOR LICENCE APPEAL REACTION FROM ALL QUARTERS
Whilst the outcome is hardly surprising, certainly it has provoked comments from far and wide within the industry.
In a 15-page judgement, Deputy Chief Magistrate Tanweer Ikram found in favour of the Appellant (ULL) stating that “despite their historical failings, I find them, now, to be a fit and proper person to hold a London PHV operator’s licence”.
He said Uber had tightened up review processes to tackle docu- ment and insurance fraud and it now “seems to be at the forefront of tackling an industry-wide challenge”.
Uber has been warned it will face close scrutiny from regulators and unions after it was granted the new 18-month licence to operate in London. Most PHTM readers will know the history behind Uber’s operator licence: it was revoked in 2017; Uber appealed the deci- sion, then they were granted a 15-month licence in 2018, followed by a two-month “extension” in 2019 to examine further “irregularities” in their business model and procedures.
In November 2019 the licence was revoked again, with Uber still continuing to work in the capital under appeal. One of Transport for London’s key safety concerns when refusing the licence last November was that up to 14,000 Uber trips had been served by non-licensed drivers fraudulently logging on to the app using other people’s IDs.
The judge noted that TfL had since uncovered further areas of con- cern, including delays by Uber in removing three drivers who committed sexual assaults against passengers.
JUDGEMENT SUMMARY
However, Ikram said: “ULL does not have a perfect record but it has been an improving picture … I am satisfied that they are doing what a reasonable business in their sector could be expected to do, perhaps even more.
“I observe that the ‘fit and proper person’ test is not a test of per- fection. It is ‘an expression directed to ensuring that an applicant for permission to do something has the personal qualities and pro- fessional qualifications reasonably required of a person doing whatever it is that the applicant seeks permission to do.’ A holistic view is required.”
The ruling is a significant victory for Uber in one of its largest mar- kets worldwide. The new 18-month licence will come with 21 conditions, proposed jointly by TfL and Uber, which Uber argues should be a baseline for all similar services in London. As at our press deadline for PHTM October, those 21 conditions had not been made public.
During the three-day hearing on 14-17 September, Uber argued that it has addressed many of the issues over which their previous licence was revoked, including document review systems, in partic- ular pertaining to fake identities and insurance fraud; a block on drivers who had not taken a booking for an extended period; and “close involvement of the Uber Board” – a factor which weighed heavily in the Judge’s decision. Cooperation with both the police and TfL was stressed, and Uber denied that it conceals any failures.
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The Mayor of London, Sadiq Khan, said: “I am pleased that Uber has admitted that their response to very real concerns about passen- ger safety was inadequate, and since then Uber has made improvements. I can assure Londoners that TfL will continue to closely monitor Uber and will not hesitate to take swift action should they fail to meet the strict standards required to protect passengers.”
The decision has been greeted by Uber as a “recognition of Uber’s commitment to safety”. Jamie Heywood, Uber’s regional general manager for Northern and Eastern Europe, said the company would “continue to work constructively with TfL”, adding: “There is noth- ing more important than the safety of the people who use the Uber app as we work together to keep London moving.”
The decision has also sparked calls for improved treatment of Uber drivers and was met with disappointment from unions representing rival private hire vehicle and hackney carriage drivers.
Steve Garelick, GMB London region organiser, said: “Uber has stopped at nothing to keep its London licence; drivers now need to see the same level of commitment put into improving their working conditions and safety.”
Chairman of the Unite London taxi section Jim Kelly said: “It is our view that Uber has a ruthless business model that undermines safe- ty and long-established regulations and now they have got the green light to continue operating in London which is very disap- pointing.
“I genuinely fear for the future of taxis in London, whose history stretches back to hackney coaches in the 1630s,” he added.
The Licensed Taxi Drivers’ Association (LTDA), who took part in the appeal as an Interested Party, said the decision was a “disaster”.
Its general secretary Steve McNamara said: “The LTDA will continue to highlight the problems associated with Uber’s business model and instances where they are putting passengers at risk, ensure that TfL keeps a close eye on them and ramp up our calls on Gov- ernment to introduce urgently needed new regulation for the taxi and PHV trades to ensure that it is fit for purpose, and Uber can be regulated effectively and no longer get away with the kinds of seri- ous breaches that were outlined in the judge’s decision.”
He added: “(Judge Ikram) is setting a very low bar for a company whose track record clearly shows it can’t be trusted to disclose serious incidents and one that has consistently failed to do the right thing.”
MEDWAY SPEAKS OUT
A decision to grant a new licence to Uber to operate in London has incensed Medway cabbies. The app-driven service currently plies its trade in Medway, Gravesend and Dartford under its licence in Lon- don. Taxi drivers in the county have launched a fierce campaign to get it banned with the unanimous backing of Medway councillors.
OCTOBER 2020
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