The Uber transportation business in the United Kingdom is at brink of a collapse following its failure to secure a new license.
Uber’s application for a new licence to operate in London has been rejected on the basis that the company is not a “fit and proper” operator.
The ride hailing app will no longer be able to offer services in their current form within the M25, despite the firm claiming 3.5 million Londoners regularly use its app.
Transport for London (TfL) announced its decision on Friday via its Twitter page. The authority wrote;
“TfL has concluded that Uber London Limited is not fit and proper to hold a private hire operator licence.”
The current licence expires on 30 September but Uber has 21 days to appeal and can continue to operate until that process expires.
Transport for London said that it had rejected the US cab hailing app’s application to renew its licence because “Uber’s approach and conduct demonstrate a lack of corporate responsibility” in relation to reporting serious criminal offences, obtaining medical certificates and other issues.
As many as 40,000 Uber drivers will potentially now be forced off the city’s streets. Uber is the subject of fierce opposition from the GMB trade union and the Licensed Taxi Drivers’ Association.
Mayor of London Sadiq Khan said in a statement:
"I fully support TfL's decision - it would be wrong if TfL continued to license Uber if there is any way that this could pose a threat to Londoners' safety and security."