Uber wins 15-month London licence in court fight

Uber will be able to continue to operate in London, its biggest European market, after a court granted the ride-hailing app a new 15-month licence.

In a big victory ahead of Uber’s planned initial public offering next year, a judge ruled that while Transport for London (TfL), the licensing authority, had been correct not to renew the app’s licence last September, the company has since changed its ways.

But Emma Arbuthnot, the judge, said Uber would have to meet a number of conditions, including regular audits. “Inevitably, such a young business has suffered a number of growing pains that hasn’t been helped by the gung-ho approach [of managers],” the judge said.

“I have given particular weight to the conditions agreed between the parties. Taking into account the new governance arrangements I find that, while Uber was not a fit and proper person when the decision was taken and the months after, it is now a fit and proper person,” she added.

Sadiq Khan, the mayor of London, said: “Uber has been put on probation — their 15 month licence has a clear set of conditions that TfL will thoroughly monitor and enforce.”

Tuesday’s decision marks a significant victory for Dara Khosrowshahi, Uber’s chief executive, who has made London a frontline in his attempt to clean up the company’s image and prove to regulators it can operate responsibly.

“Above all this is a win for @Uber, our employees, driver partners and riders,” he tweeted. “And for the company we envision being. Thank you London. We wont let you down.”

Uber argued in court that it had “grown up” following the ousting of founder Travis Kalanick as chief executive at the end of last summer. Thomas de la Mare, a lawyer representing Uber, admitted that the company “did some things in hindsight that are pretty stupid to be frank”. TfL withdrew its licence because of public safety concerns and because of Uber’s attitude towards regulatory scrutiny.

[Uber] did some things in hindsight that are pretty stupid, to be frank

Uber has already made a series of changes, including the proactive reporting of violent incidents to the police. It has now also agreed to be audited after six months and not to employ any senior managers who were aware of the Greyball software that was used to avoid regulatory scrutiny.

Tom Elvidge, promoted to be the ride-hailing app’s general manager for the UK and Ireland in the wake of its licence ban, said he was “pleased” with the decision. “We will continue to work with TfL to address their concerns and earn their trust, while providing the best possible service for our customers.”

Mr Elvidge’s predecessor, Jo Bertram, who was singled out for criticism by TfL, left the company last October. She has since joined O2, the UK arm of Spanish telecoms company Telefónica.

Helen Chapman, licensing director for TfL, said in a witness statement that “it is difficult for TfL to assess Uber London Limited’s changes to its corporate culture and approach, because they will take time to become embedded in the business”.

Ms Arbuthnot said she believed Uber would change under the guidance of non-executive directors including Laurel Powers-Freeling, whom she called “impressive”.

London is Uber’s biggest European market with more than 3.6m users and about 45,000 drivers. As Uber has pulled back from money-losing markets including south-east Asia, its biggest backer, SoftBank, has urged the company to focus on core markets including the US and Europe.

Uber is currently banned, restricted or has been forced to withdraw certain services such as its peer-to-peer technology UberPOP from countries including Spain, Denmark, Germany, Italy, Finland, Japan, Hungary and Bulgaria.

The app also faces tougher government oversight in the EU following a decision from the European Court of Justice last November that it should be regulated like a traditional taxi company instead of a technology group. It is also under government investigation over its business practices in the US.

The company is planning to relaunch in Finland after new regulations come into effect next month, and its legal battles are not over for Uber in the UK. In November the app lost a tribunal ruling after it was told it must treat drivers as “workers” entitled to the minimum wage and holiday pay. It is appealing against that decision, with the next hearing scheduled for October.

Steve McNamara, general secretary of the Licensed Taxi Drivers’ Association, said it was “disappointed” with the decision. “Uber’s blatant disregard for TfL’s regulations and public safety was laid before the court. When TfL’s lawyers grilled Uber on its handling of the 2016 data breach and its shocking failure to report sexual assaults to the police, Uber just blamed its tainted past on its former leadership.”