Uber has been re-granted an operating licence by Transport for London (TfL) to provide Public Hire Vehicles (PHV) in London, but once again the licence has not been awarded for the full five years.
Instead, the company will be allowed to operate for 30 months under strict conditions, the details of which have not been fully made public. This is not the first time TfL has raised doubts about Uber's safety and administration in the British capital.
According to Passenger Transport Magazine, TfL’s denial of a full five-year licence is a clear signal that the regulator still has concerns about Uber. These concerns appear to be primarily around passenger safety and compliance with administrative obligations. While the exact terms of the new licence have not been released by TfL, they are largely focused on ensuring safety and improving the company’s operational processes.
conditions
Previous experience shows that Uber has often had to deal with strict conditions. In 2021, a Freedom of Information request revealed that Uber’s then-license contained no fewer than 21 specific conditions. By comparison, competitors such as Bolt and FreeNow operated with 15 and 9 conditions respectively. Ola, a now bankrupt player in the market, was only imposed seven conditions, although these were considered stricter.
Andrew Brem, Uber UK’s chief executive, responded to the new licence in a statement: “Uber is committed to being the best partner for London. We will continue to raise the bar on safety, improve working conditions for drivers and work towards electrifying every vehicle on our platform.” Brem’s commitment reflects Uber’s ongoing efforts to meet TfL’s requirements and regain the trust of both the regulator and passengers.
Uber has a history of run-ins with TfL in London. The regulator revoked the company’s licence in 2017 and 2019 amid serious concerns about passenger safety. On both occasions, Uber was allowed to continue operating, pending appeal. Uber ultimately managed to challenge the revocations in both cases and was granted permission to operate in London again. One of the most significant incidents that led to TfL’s concerns was the shocking discovery in 2019 that at least 14.000 rides had been made by drivers who had spoofed their identities. These drivers were exploiting vulnerabilities in Uber’s app that allowed them to drive on someone else’s account without their identity being checked.
security
The incident underlined to TfL the importance of strict terms and controls on Uber's operations. TfL's concerns about the security of the app and the company's procedures were so great that the company was deemed unfit to hold a 'fit and proper' licence, which is normally required for private transport operators in London.
The new 30-month licence is an extension of the previous licence that Uber was granted in March 2022. It marks a continuation of the tense relationship between Uber and TfL, with the regulator continuing to keep the company under constant scrutiny. While Uber has managed to secure a licence each time, it seems unlikely that the company will receive a full five-year licence any time soon. This is despite efforts Uber has made to improve its practices, such as introducing stricter safety measures and offering better working conditions for drivers.
For TfL, passenger safety remains the number one priority. While the company has less stringent requirements with other platforms such as Bolt and FreeNow, it is clear that Uber still needs to regain the trust of the regulator. So it remains to be seen how the situation develops in the future, and whether Uber will ever receive the long-awaited full licence.
