Uber loses licence to operate in London after safety failures

Uber (UBER) has been refused a new licence to continue to operate in London for putting safety at risk after thousands of users took uninsured trips with individuals pretending to be authorised drivers.

A change to Uber’s systems allowed unauthorized drivers to upload their photos to other driver accounts, meaning they could pick up passengers as if they were the booked driver, which happened in at least 14,000 trips, Transport for London (TfL) said.

Transport for London, the city's legal authority on all matters in the sector, said Uber was no "fit and proper" to hold an operating licence in the capital, citing what it called a "pattern of failures" by the ride-hailing group that put the city's 3.6 million customers at risk. TfL said errors in the Uber app, which passengers use to engage freelance drivers contracted by teh group, allowed unauthorized drivers to book more than 14,000 trips.

Uber originally lost its licence in 2017 due to safety concerns, but was granted a 15-month extension. The firm says it will appeal against the decision and can continue to operate during that process. It had received an additional two-month extension in September which expired on Sunday.

Uber said the decision was "extraordinary and wrong" and said it would be appealing.

The transit authority said one of the key issues behind its decision was a change to Uber’s systems that allowed unauthorized drivers to upload their photos to other driver accounts.

Some passengers also traveled with unlicensed drivers, including one whose license was previously revoked by Transport for London.

The company then pledged to “keep listening, learning and improving,” and said it had already made “fundamental changes” including improving safety standards.

“TfL has identified a pattern of failures by the company including several breaches that placed passengers and their safety at risk,” the regulator said on Monday, the day the firm’s license expires.

The ride-hailing app firm's existing licence expires at 11.59pm on Monday but it will be allowed to continue to operate pending the appeal.