Uber will not be granted a new licence to operate in London after repeated safety failures, Transport for London has said.
The regulator said the taxi app was not “fit and proper” as a licence holder, despite having made a number of positive changes to its operations.
Uber initially lost its licence in 2017 but was granted two extensions, the most recent of which expired on Sunday.
The firm will appeal and can continue to operate during that process.
About 45,000 drivers work for Uber in London, which is one of its top five markets globally.
Why won’t Uber get a new licence?
TfL said it had identified a “pattern of failures” that placed passenger safety and security at risk.
These included a change to Uber’s systems which allowed unauthorised drivers to upload their photos to other Uber driver accounts.
It meant there were at least 14,000 fraudulent trips in London in late 2018 and early 2019, TfL said.
The regulator also found dismissed or suspended drivers had been able to create Uber accounts and carry passengers.
Helen Chapman, Director of Licensing, Regulation and Charging at TfL, said: “While we recognise Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured.”
London Mayor Sadiq Khan said: “I know this decision may be unpopular with Uber users, but their safety is the paramount concern. Regulations are there to keep Londoners safe.”
What does Uber say?
Uber said the decision was “extraordinary and wrong”. It said it had audited every driver in London over the last two months and further strengthened its processes.
Boss Dara Khosrowshahi tweeted: “We understand we’re held to a high bar, as we should be. But this TfL decision is just wrong. Over the last 2 years we have fundamentally changed how we operate in London.”
We understand we’re held to a high bar, as we should be. But this TfL decision is just wrong. Over the last 2 years we have fundamentally changed how we operate in London. We have come very far — and we will keep going, for the millions of drivers and riders who rely on us.
— dara khosrowshahi (@dkhos) November 25, 2019
If Uber’s appeal is unsuccessful some think it would leave a huge gap in the London ride-hailing market.
However, Fiona Cincotta, market analyst at City Index, told BBC Radio 4’s Today programme: “Here in London, there would be competition that would fill that void quite quickly.”
According to Uber, 24% of its sales come from just five cities, including London. The others are Los Angeles, New York City, San Francisco and São Paulo in Brazil.
In a public filing, it said: “Any inability to operate in London, as well as the publicity concerning any such termination or non-renewal, would adversely affect our business, revenue, and operating results”
“We cannot predict whether the TfL decision, or future regulatory decisions or legislation in other jurisdictions, may embolden or encourage other authorities to take similar actions even where we are operating according to the terms of an existing license or permit.”
