Transport for London (TfL), the city's transport authority, has banned Indian taxi app Ola over public safety issues.
TfL decided to ban Ola, which has been operating in London since February, after it reported several failings including over 1,000 trips made by unlicensed drivers. The cab company said it will appeal the decision and has 21 days to do so.
In the meantime, Ola may be able to continue its operations based on appeal rules.
Ola safety concerns
According to TfL, Ola failed to report the shortcomings as soon as it became aware of them.
TfL director of licensing, regulation and charging Helen Chapman said: "Through our investigations we discovered that flaws in Ola's operating model have led to the use of unlicensed drivers and vehicles in more than 1,000 passenger trips, which may have put passenger safety at risk."
"If they do appeal, Ola can continue to operate and drivers can continue to undertake bookings on behalf of Ola. We will closely scrutinize the company to ensure passengers safety is not compromised," Chapman explained.
Ola started its operations in Cardiff in 2018 and has expanded in other UK locations since then.
In response to the TfL decision, Ola's UK Managing Director Marc Rozendal said: "We have been working with TfL during the review period and have sought to provide assurances and address the issues raised in an open and transparent manner."
"Ola will take the opportunity to appeal this decision and in doing so, our riders and drivers can rest assured that we will continue to operate as normal, providing safe and reliable mobility for London."
Big win for Uber
London's ban on Ola may be perceived as a big win for Uber, which just secured its new license to operate in the city last week.
The ride-hailing giant won its appeal against TfL to secure a new license to continue its operations in London.
The Westminster Magistrates’ Court upheld the appeal filed by Uber almost a year after TfL rejected its application for a new license to operate in London over safety concerns. The court decision ended the uncertainty faced by 45,000 drivers using the app in the city.
According to the Westminster Magistrates’ Court, the company was now a "fit and proper" operator "despite historical failings".
It was discovered that 24 drivers shared their accounts with 20 others, resulting to 14,788 rides. Jamie Heywood, regional general manager for Northern and Eastern Europe at Uber, reassured: “It was not what we would do now. It was inadequate, we could have done better.”
Mayor of London Sadiq Khan argued that TfL was "absolutely right" not to renew Uber’s license last year but acknowledged that the firm had "made improvements".
"I can assure Londoners that TfL will continue to closely monitor Uber and will not hesitate to take swift action should they fail to meet the strict standards required to protect passengers," the mayor added.
Uber’s new license will be valid for 18 months and will entail a number of conditions to enable TfL to closely monitor Uber’s compliance to the regulations.
Heywood said: "This decision is a recognition of Uber’s commitment to safety and we will continue to work constructively with TfL."
