Transport for London’s ban on private hire operator Uber has sparked outrage among the capital’s travellers, with 800,000 having now signed a petition urging Mayor Sadiq Khan to overturn the decision. But transport technology experts believe the move could ultimately result in a positive outcome.
It was announced on Friday that Uber would not be issued with a new operating licence in London after its current one expires on 30 September. TfL judged the company to be ‘not fit and proper’ to hold the licence, citing concerns around its approach to reporting criminal offences and carrying out background checks on drivers.
Uber – whose app is used by 3.5M people in London – has since apologised and is looking to challenge the decision in the courts. “This ban would show the world that, far from being open, London is closed to innovative companies who bring choice to consumers,” said its general manager in the capital Tom Elvidge.
Commenting on the situation, the Confederation of British Industry’s innovation director Tom Thackray said: “It’s not in the interests of our economy, people in London and in this case, drivers, to restrict new products and services. Reaching a sensible agreement that allows services to continue will matter to the millions of consumers and thousands of drivers who use the app.”
But others believe that there are positives to come out of the dispute. ‘Mobility as a Service’ company MaaS Global is currently trialling its app ‘Whim’ in the West Midlands. The firm’s chief executive Sampo Hietanen commented: “I have always felt that Uber is doing a great job of shaking up the mobility sphere. But the biggest innovations will need to happen in the field of regulation.
“The overall vision for mobility should be owned by cities and governments and I am confident that TfL is taking an holistic view as a regulator to set the rules that have to be followed.”
Transport innovation network the TravelSpirit Foundation’s chief technology officer Jeremy Dalton said: “This decision could help TfL establish better ground rules in the long run, ensuring that companies like Uber are part of a transport system that is more resilient.”
He added that it presents an opportunity for Uber to respond with a demonstrable commitment to “turning areas of real or perceived weakness” into areas of strength. “In the short to medium term, this decision by TfL will cause some headaches, but I doubt London will be without Uber for long,” he said.
Future Cities Catapult strategy, markets and standards team lead Rushi Rama added that cities must adapt faster to digital disruption like that caused by Uber. “If we can anticipate the issues that digital disruption will bring, then we can put in place strategies and regulatory frameworks appropriate for them,” he suggested.
Institution of Engineering & Technology transport lead Dr Anna Bonne said: “As consumer demand is high I am sure TfL and Uber will meet a happy compromise which will allow them to still operate in London. But more important than the Uber discussion is for the UK Government and city authorities to enable Mobility as a Service through allowing ticket resale, ensuring good smartphone connectivity and excellent transport integration whether that’s shared, public or private transport.”
The Mayor of London Sadiq Khan has expressed willingness to enter talks with Uber. He said: “I welcome innovative new companies that help Londoners by providing a better and more affordable service – but providing an innovative service is not an excuse for not following the rules. All companies in London must play by the rules and adhere to the high standards we expect.”
“I suspect it will take some time before this situation with Uber fully plays out.”
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