Whether or not Uber believes in karma, London just served it some. The city's transport authority declined to renew the ride-hailing service's license to operate in the city Friday, Sept 22, amid claims of sexist workplace abuse and regulatory malpractices.
Losing London, the company's largest European market, is sure to be a big setback for Uber yet again, following similar departures out of a few major markets such as Delhi, India; Austin, Texas; Vancouver, Canada; and Denmark.
Uber Leaves London
Transport for London, the city's transport authority, 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." It also said Uber was not sufficiently "fit and proper."
TfL cited several of Uber's alleged shady business practices, most especially Greyball, which TfL says prevents regulatory bodies from obtaining full access to Uber's app for law enforcement purposes. Greyball is a software Uber reportedly used this tool to provide regulators a fake map full of fake cars. This helped Uber in deliberately preventing them from getting a ride, and since they couldn't get rides, regulators couldn't technically catch Uber in the act.
Uber has 21 days to repeal the TfL's decision. In the meantime, Uber will still roam the streets of London at least until any appeals have been completed.
A Very Bad Year For Uber
The departure presents a major challenge for Uber's new CEO, Dara Khosrowshahi, who replaced Travis Kalanick late August following his dismissal. Uber has faced a series of controversies over the past year, including complaints of an unpleasant workplace culture, not to mention reports of an aggressive, "pugnacious" CEO. It's also embroiled in a high-stakes legal battle with Google's Waymo over claims of trade secret theft.
In an email to Uber employees, Khosrowshahi said he found the London decision unfair, but argued "the truth is that there is a high cost to a bad reputation." He added: "it's critical that we act with integrity in everything we do, and learn how to be a better partner to every city we operate in."
Uber said the 3.5 million London residents use its app, and the 40,000 licensed drivers who depend on Uber to make a living, will be astounded by the decision. The company also argued TfL and London's Mayor "caved in" to only a small number of people who want to "restrict consumer choice."
On Twitter, Khosrowshahi admitted that Uber was "far from perfect," and encouraged London authorities to "please work with us to make things right."
