The Student Room Group

Uber loses licence to operate in London

Scroll to see replies

Original post by Bornblue
All Uber had to do was comply with its legal obligations yet it failed to do so.

It only has itself to blame.


Khan isn't helping. TfL has just taken its livelihood away and he is complaining that Uber is going to law about it.
Original post by nulli tertius
Khan isn't helping. TfL has just taken its livelihood away and he is complaining that Uber is going to law about it.


It's a signal that City Hall are not going to be willing to negotiate with Uber any more or tolerate further manoeuvres by the notoriously manipulative people who run it. The decision is being taken as final and short of it being overturned by the judges, that's that for Uber in London and perhaps the rest of the UK.

Austin, Texas and Denmark rejected Uber and things have improved in the app-taxi market in both territories since they did.
https://www.theguardian.com/technology/2017/sep/23/uber-london-ban-austin
Original post by nulli tertius
Your argument becomes circular. They have broken the law (pending an appeal) because being a fit and proper person is a legal requirement for holding a licence.


Original post by Bornblue
They have in effect broken the law though by failing to comply with their legal obligations.


The Times today has an article stating that this is not the case.

Uber was repeatedly given a clean bill of health by transport bosses before the sudden decision to ban it from London, The Times has learnt.
Inspections carried out by Transport for London between 2013 and the middle of this year failed to find any major fault with the company, it emerged, leading to claims that the cancellation of its licence smacked of “political opportunism”.

Data released under the Freedom of Information Act showed that TfL conducted ten inspections at Uber’s London headquarters and ruled that it “satisfied regulatory requirements”.

In April Uber also successfully passed its annual compliance audit, which is thought to have involved 20 officials from TfL’s licensing department reviewing thousands of documents over two days.

...


Data released by TfL at the end of July showed that ten compliance inspections had taken place at Uber in the past four years, the last of which was in April.

Only one, in August 2016, showed that Uber was failing to comply fully with its licence. However, in that instance TfL later said that Uber took “all reasonable steps” and the breach was deemed outside its control.

...

In August, [police] Inspector Neil Billany wrote to TfL warning that Uber was failing properly to investigate allegations against its drivers.
Uber sources said that TfL had never relayed any concerns to the company. It was given a temporary six-month licence when its previous five-year licence expired at the end of May.

So, any failings have not been notified to Uber, or were deemed to be insignificant by TfL inspectors. The mayor is heading for a legal defeat, I suspect.

https://www.thetimes.co.uk/edition/news/tfl-inspectors-gave-uber-green-light-10-times-flbp7tqxs
Original post by Bornblue
They have in effect broken the law though by failing to comply with their legal obligations.


That’s the first I have heard of it, which obligation?
Original post by nulli tertius
Your argument becomes circular. They have broken the law (pending an appeal) because being a fit and proper person is a legal requirement for holding a licence.


That’s the regulator for London I mean the actual uk law.
Original post by paul514
That’s the first I have heard of it, which obligation?


Background checks, investigating complaints and cooperating with the regulator.
Original post by Bornblue
Background checks, investigating complaints and cooperating with the regulator.


The regulator's own reports, as reported by the Times, give it a clean bill of health, though.
Original post by Bornblue
Background checks, investigating complaints and cooperating with the regulator.


I just had a little read and yea the back ground checks seems fair enough, complaints weren’t mentioned in what I read and the regulator was just mentioning the checks?
And many women say they are reassured by some of its features. such as the ability for customers and their friends and family to track the journey and the driver; the door-to-door service that keeps people from waiting on the road; and knowing who is collecting them.

Uber has some 3.5 million registered users in London, and many people prefer the service to the alternatives on offer.

"I'm so annoyed," says 26-year-old marketing manager Lisette Henry of the licence loss. "London nightlife is one of the best in the world and I think it's going to restrict a lot of people having access to that."

She uses the app every week and says she depends on it for late-night journeys from the airport after work trips.


http://www.bbc.co.uk/news/uk-41365995

And that's on the BBC!
Original post by paul514
I just had a little read and yea the back ground checks seems fair enough, complaints weren’t mentioned in what I read and the regulator was just mentioning the checks?


There is no natural justice in losing a licence for the reason that background checks were inadequate when the regulator has not passed on police concerns about them and the regulator has not communicated with the company in recent months on the matter.

han has acted precipitately in revoking the licence and digs the hole he is in even deeper by complaining when the company takes legal action against his decision. That just makes him look foolish - what else, other than legal action, would anyone expect?
Original post by Good bloke
There is no natural justice in losing a licence for the reason that background checks were inadequate when the regulator has not passed on police concerns about them and the regulator has not communicated with the company in recent months on the matter.

han has acted precipitately in revoking the licence and digs the hole he is in even deeper by complaining when the company takes legal action against his decision. That just makes him look foolish - what else, other than legal action, would anyone expect?


The case has been appealed and will go to court.
If Uber has failed to comply with its legal obligations, it can have no complaints about the decision.

What I have trouble with is those saying even if they have broken the law, we should excuse them because they are popular. Big companies are not above the law.

I also find it funny than Uber, who for so long has argued it has no employees as a justification for not paying holiday pay, sick pay or other traditional employment benefits, is now saying how unfair this whole affair will be on those employees.
(edited 6 years ago)
Whatever side of the argument, if any, we take, let's all agree on one thing: this is not the way for TfL to proceed, to abruptly break such news with a month to go. For that reason alone, they make people wonder about their fitness to run anything. As a net contributor to the London pot, I'd like to know who to blame for any legal battles that may arise. Having no choice but to pay into it under threat of confiscation of all my goods and imprisonment, that is the least a citizen can demand and we can't even get that.
Original post by TimmonaPortella
I don't so much think that they should be above the law as that the law should be different. My points throughout the thread have been pretty clearly directed to that.

If I stopped responding to a particular point it's probably because I thought it had ceased to be informative and become tedious.


Your justification for that law being different though was that the relationship between Uber and its drivers was similar to that of HungryHouse and a takeaway company, which is simply a factually incorrect observation.
Original post by Bornblue
The case has been appealed and will go to court.
If Uber has failed to comply with its legal obligations, it can have no complaints about the decision.

What I have trouble with is those saying even if they have broken the law, we should excuse them because they are popular. Big companies are not above the law.

I also find it funny than Uber, who for so long has argued it has no employees as a justification for not paying holiday pay, sick pay or other traditional employment benefits, is now saying how unfair this whole affair will be on those employees.


I'm no fan of Uber and big companies should not be above the law, but it very much appears that they have been dealt with in a high-handed, unfair and arrogant way. I will be very surprised if the court allows the revocation to stand on those grounds alone, leaving any points that matter to be handled in due course (as should have happened)..
Original post by Bornblue
Your justification for that law being different though was that the relationship between Uber and its drivers was similar to that of HungryHouse and a takeaway company, which is simply a factually incorrect observation.


Actually, what I did was draw an analogy in one post for the purpose of making one point, which you have weirdly fixated on to the point that you're still bringing it up out of the blue 3 days later.

Original post by TimmonaPortella
Bornblue
If a takeaway or restaurant was using dodgy food which gave people food poisoning, they would be shut down. It's the same principle.
Yes, but if you bought a dodgy takeaway via HungryHouse, HungryHouse shouldn't be shut down. All HungryHouse is doing is hooking up consumers with providers.

We are increasingly going to see technology companies like uber providing a much more free and direct link between consumers and providers of services. My point earlier in the thread about applying 'old frameworks' to such new phenomena was in relation to this. The problem with set regulations is that they don't adapt to the times and therefore stifle innovation. Here they're just getting in the way.


Nothing turns on exactly how similar Uber's model is to HungryHouse's, which is why I didn't respond to your long argument on that point, but did respond to another post to deal with how Uber itself operates:

Original post by TimmonaPortella
Notorious_B.I.G.
I don't think uber is presenting one product though. Uber's proposition is basically that anyone can sign up and drive a car. Uber will stick them on its map and you can get a ride from them. That set up is inherently more risky than a traditional cab company, I'd say even with background checks and so forth, but that doesn't mean it shouldn't exist. Likewise, in some ways AirBnB is more risky than a traditional hotel room. That doesn't mean it shouldn't exist.
I don't think uber is presenting one product though. Uber's proposition is basically that anyone can sign up and drive a car. Uber will stick them on its map and you can get a ride from them. That set up is inherently more risky than a traditional cab company, I'd say even with background checks and so forth, but that doesn't mean it shouldn't exist. Likewise, in some ways AirBnB is more risky than a traditional hotel room. That doesn't mean it shouldn't exist.


You have since brought up whether the relationship between Uber and its drivers is considered one of 'employment' or not in the legal context. For the record, I have no interest in this distinction. I don't consider it to be of any moral significance and if I had my way employment contracts wouldn't be treated any differently from 'normal' contracts.

Now, I realise you have an unending need to validate yourself by 'winning' anywhere you can, which apparently stretches to bringing up tangential points days after they were passingly made, but at this point could you please stop being weird and quoting me with this every five minutes?
Original post by Good bloke
I'm no fan of Uber and big companies should not be above the law, but it very much appears that they have been dealt with in a high-handed, unfair and arrogant way. I will be very surprised if the court allows the revocation to stand on those grounds alone, leaving any points that matter to be handled in due course (as should have happened)..


I do think people should be wary of the business model Uber uses too. There are clear concerns with huge corporations aggressively undercutting competitors by running at a loss, with the intention of driving competitors out of business, gaining a monopoly and then raising its prices.

Uber is running at a huge loss and clearly the low prices are unsustainable. Indeed people only need to see how Uber raised its prices hugely during the tube strikes to guess what they will do once they have a large market share.
(edited 6 years ago)
Original post by Bornblue
I do think people should be wary of the business model Uber uses too. There are clear concerns with huge corporations aggressively undercutting competitors by running at a loss, with the intention of riving competitors out of business, gaining a monopoly and then raising its prices.

Uber is running at a huge loss and clearly the low prices are unsustainable. Indeed people only need to see how Uber raised its prices hugely during the tube strikes to guess what they will do once they have a large market share.


The answer is to license some competitors (like Lyft), not find spurious ways to get rid of Uber.

The whole point of these apps is that prices rise at popular times and fall at quiet times.
Original post by Good bloke
The answer is to license some competitors (like Lyft), not find spurious ways to get rid of Uber.

The whole point of these apps is that prices rise at popular times and fall at quiet times.


That's why I do think there needs to be state interference in the market, especially with regards to competition law. A market which is too free allows a handful of corporate giants to dominate and drive everyone else out of business.

I do think there should be restrictions on the model Uber is using though.
Original post by Bornblue
That's why I do think there needs to be state interference in the market, especially with regards to competition law. A market which is too free allows a handful of corporate giants to dominate and drive everyone else out of business.

I do think there should be restrictions on the model Uber is using though.


You appear to be arguing that the state should license a tiny number of companies to operate (as long as Uber isn't one of them) to avoid the situation whereby the big players can use their size to reduce to market to a tiny number of suppliers. Can you see the problem with that?

You also appear to believe that it is reasonable to force low prices when demand is low but not allow higher prices when demand is high. Yet hundreds of thousands of your peers have signed a petition demanding their low cost taxi source back.
(edited 6 years ago)
Original post by Good bloke
You appear to be arguing that the state should license a tiny number of companies to operate (as long as Uber isn't one of them) to avoid the situation whereby the big players can use their size to reduce to market to a tiny number of suppliers. Can you see the problem with that?

You also appear to believe that it is reasonable to force low prices when demand is low but not allow higher prices when demand is high. Yet hundreds of thousands of your peers have signed a petition demanding their low cost taxi source back.


My main argument is that no company should be above the law and if Uber are found by the court to have failed to meet their legal obligations, then they can have no complaints about the action taken. Until it goes to Court though, I guess there is little point speculating about what the decision may be.

As to competition, well I think the state should allow competition and provide licenses. However, those who do not act lawfully should have those licenses revoked. I also would like to see increased restrictions on the aggressive undercutting done by larger firms, especially when they run at a loss to put others out of business.

My argument is that the low prices are temporary and will increase significantly once they have a monopoly. They can't sustain the business if they keep making a loss.

Quick Reply

Latest

Trending

Trending