Ride-hailing giant Uber has won its appeal against Transport for London (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.
Last year's license rejection by TfL
In November 2019, TfL announced that Uber will no longer be granted a new license to operate in London following repeated safety failures.
According to the regulator, the ride-hailing company Uber was not "fit and proper" to receive a new license in London despite implementing a number of positive changes to its operations. Uber initially lost its license to operate in 2017 but was given two extensions.
According to the TfL, it had identified a "pattern of failures" that placed passenger safety and security at risk, including a change to Uber’s systems that allowed unauthorized drivers to upload their photos to other Uber driver accounts.
TfL mentioned that there have been at least 14,000 fraudulent trips in the city in late 2018 and early 2019. The regulator also discovered dismissed or suspended drivers who were able to create Uber accounts and transport passengers.
TfL Director of Licensing, Regulation and Charging Helen Chapman said: "While we recognize Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured."
Mayor Khan supported the decision of TfL, saying: "I know this decision may be unpopular with Uber users, but their safety is the paramount concern. Regulations are there to keep Londoners safe."
The court decision
Deputy chief magistrate Tan Ikram mentioned that he considered Uber's "track-record of regulation breaches" but the company had made efforts to address its shortcomings and improve its standards.
Ikram said: "Despite their historical failings, I find them, now, to be a fit and proper person to hold a London PHV [private hire vehicle] operator's license. Uber does not have a perfect record but it has been an improving picture."
"The test as to whether [Uber] are a 'fit and proper person' does not require perfection. I am satisfied that they are doing what a reasonable business in their sector could be expected to do, perhaps even more," the judge 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."
