Uber has been banned in London after Transport for London deemed it unfit to run a taxi service on Friday indicating that it will not be renewing the company’s license to operate in the city.
It is understood that the firm’s application for a new license in London was rejected on the basis that the company is not a “fit and proper” private car hire operator.
The capital’s transport regulator said the Silicon Valley technology giant’s approach and conduct was not fit and proper to hold a private vehicle hire license and it would not be renewed when it expires on September 30, 2017.
The licensing body also said it was concerned by Uber’s use of Greyball, software that can be used to block regulatory bodies from gaining full access to its app and undertaking regulatory or law enforcement duties.
“Uber’s approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications,” TfL said.
The decision by Transport for London was backed by London mayor Sadiq Khan, employment rights campaigners, and the trade body for the capital’s black-cab drivers, who have been staunch opponents of the US-based company.
But the ruling allows the opportunity for an appeal, and makes clear that Uber will be able to continue to operate while that process is ongoing.
The development is expected to come as a major blow to the U.S. firm and it’s 3.5 million users in one of the world’s wealthiest cities.
Meanwhile, Uber, which has 40,000 drivers working in the capital, said it would contest the decision.
Regulator Transport for London (TfL) said it would let Uber operate until the appeals process is exhausted, which could take months.