The company said the decision is a “recognition of
Uber’s commitment to safety” and it will “continue
to work constructively” with the regulator.
It’s a crucial legal victory in a lucrative European
market as the company struggles to turn a
profit. Uber posted a $1.8 billion loss in the latest
quarter because millions of people stayed home
amid the pandemic. That has raised doubts
that it can meet its goal of becoming profitable
by 2021. The company faces a slew of other
regulatory challenges around the globe. In
Britain, it’s also involved in a separate case at the
Supreme Court over whether drivers should be
considered workers with rights, in a ruling that
could shake up the country’s gig economy.
Uber’s London license has been revoked twice
since 2017 but the company has been able to
continue operating while it appealed.
In the latest case, Transport for London rejected
Uber’s application in November 2019 for a new
license, citing several breaches that placed
passengers at risk. Most notably, the regulator
found that a change Uber made to its systems
allowed unauthorized drivers to upload their
photos to other driver accounts and carry out at
least 14,000 uninsured rides.
The magistrate said he took into account
Uber’s efforts to improve oversight and tighten
up identity checks. He said he didn’t find any
evidence of a “cover up” of the driver photo
fraud problem.
“Uber doesn’t have a perfect record but it has
an improving picture,” Ikram said. “I am satisfied
that they are doing what a reasonable business
in their sector could be expected to do, perhaps
even more.”