Uber has lost its London license for the second time in two years. If it sticks, the effect could be detrimental to the ride-hailing company.
Uber has revolutionized the way in which we hail a cab. No longer do we have to call a taxi company or stand on the sidewalk with our arm in the air. Well, unless we really want to. Instead, we can just open up the Uber app, request a ride, and the driver comes to us. To the exact spot where we're standing providing it's not too ridiculous.
The trouble with Uber, like a lot of new services that grow exponentially over a short space of time, is they are hard to police. By the time regulatory bodies are getting to grips with how exactly these new services work, they have blown up and are being used by millions of people around the world.
That's why Uber continues to run into various problems, the most recent of which is the loss of its license in London, as first reported by The Telegraph. It's the second time Transport for London has denied Uber's request for a license renewal in two years, and the company once again faces the prospect of being banned from operating in the UK capital altogether.
So what's next for Uber in London? Well, for now, it can continue to operate in London as normal. However, should its appeal fail, then Uber might well be banned from operating in London. Not only will that annoy an awful lot of Londoners, but it could have a detrimental effect on Uber as a whole. Uber stock dropped more than 6% after news broke of its failure to get its license renewed earlier this week.
All Uber can do now is appeal the decision, then cross its fingers and hope. Plus, you know, make sure its users and riders feel safer and generally are safer. That's the root of the problem behind why its license renewal request has been rejected. Meanwhile, London cab and bus drivers will be hoping Uber leaves the city, thus giving them back a lot of the custom they lost when the app launched in the capital.