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US-based cab aggregator Uber will lose its operating licence in London. The transport regulator announced that it would not renew the licence as the company is not fit to operate in the city.
Regulator Transport for London (TFL) stated that Uber's conduct is posing serious threats to public safety. The company's licence expires on September 30, 2017.
Now, Uber has 21 days left to appeal against the ban and TFL has said that the cab aggregator can continue to operate until the appeal process is completed. The ban will be a big blow to the company and will affect over 40,000 drivers in London.
In a statement, TfL said, "Uber's approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications."
TFL said that it was particularly concerned about Uber's approach towards reporting serious criminal offences, background checks on drivers and a software called Greyball that could be used to block regulators from gaining access to the app.
Uber has stated that it will challenge the ban. The company said, "To defend the livelihoods of all those drivers, and the consumer choice of millions of Londoners who use our app, we intend to immediately challenge this in the courts."
This is not the first time Uber is facing a ban; the company has been forced to quit several other countries such as Denmark and Hungary. The US-based company has faced several regulatory battles on its home soil and other nations around the world.
The ban in London will be a big blow to Uber, and it will also affect around more than 40,000 drivers in the city. But the company is confident to challenge the decision of TFL. The primary cause for the ban of licence is poor customer service and serious criminal offences which poses a risk to the public.