What is the future of Uber in London and around the world? If you’ve invested with Uber, you might be a bit concerned. With Uber firing 20 employees over sexual harassment probe earlier this year. As well as Travis Kalanick, the Founder, and C.E.O. resigning from his position as C.E.O. because of concerns from major investors like venture capital firm Benchmark Capital, because of years of concerns about a dysfunctional workplace culture and their deceptive practices in avoiding and skirting authorities worldwide. It has become apparent to authorities in London that Uber is not welcome anymore.
On September 22, 2017, we learned that Uber, will not have their London licensed renewed as of September 30th. London is a huge market for Uber. With 3.5 million clients and 40,000 drivers in London. The financial damage this will have on Uber is unknown at this time, but it will most certainly be a loss of tens of millions of dollars.
Uber, has stated that they will appeal the decision immediately and while they are in the appeal proceedings, they will continue to operate.
John Colley, a strategy professor at Warwick Business School, said poor values ultimately bring companies down. Uber is now effectively banned from France, Spain and Belgium — together with facing litigation and investigation around the world, he said.
“There is a very long list of businesses who have suffered for failing to uphold the level of values necessary,” Colley said. “Until Uber gets this message then it will suffer lost trade as a result of its deteriorating reputation.”
Uber deserved to lose its licence – Londoners’ safety must come first | Sadiq Khan | Opinion | The Guardian
Today, Transport for London has made the formal decision not to renew Uber’s operating licence. This was made independently by TfL as the regulator. I know this decision will be controversial in some quarters. Uber has become a popular service for many Londoners. But I fully understand the decision that has been taken.
One of the reasons why London has become such a success with international business over centuries is because of our professionalism and sense of British fair play, with transparent rules, laws and regulations. This ensures that all companies are treated equally – something we would never want to lose.
Make no mistake, Uber will use every legal avenue to fight this ban. It will argue that consumers, in the shape of the millions of mainly young Londoners who rely on its service, will be seriously let down if it can no longer operate.
But the courts will have to balance that with the serious concerns about public safety raised by TfL.
— Mayor of London (@MayorofLondon) September 22, 2017
— Uber UK (@UberUK) September 22, 2017
— Summer Ray (@SummerRay) September 22, 2017
— William Kedjanyi (@KeejayOV2) September 22, 2017
As an owner of multiple transportation companies, I have mixed feelings of Uber. The taxicab industry is utterly corrupt because of political corruption and crony corporatist. The one thing I like about Uber is that it is breaking the monopoly in many ways. I have always believed that the market should be opened up to everyone, but that there must be safety regulations that apply to all vendors. Here in California, taxicab companies must pay thousands in commercial insurance policies, meter inspections, vehicle inspections, drug testing, and extensive DOJ background screening of drivers. I believe that regulations to make sure vehicles and drivers are properly vetted is a good thing, as well as proper insurance.
The problem I have with Uber in California at least is that they don’t do any of these things. I want a free and open market, but you cannot have one company playing by one set of rules and Uber doing pretty much whatever it wants. I believe safety and privacy rights is what the government should be concerned about. If Uber continues to think that they can do whatever they want they will quickly find themselves losing more than just London; as countries, municipalities, and customers are rejecting Uber they might find themselves with so many taxicab companies they have put out of business.