The decision on 28th September 2020 restoring Uber’s transportation license in London is the latest in a history fraught with lawsuits challenging the company’s capacity to operate in the city. What could such a worrying track record spell for Uber and its drivers, especially given the current pandemic?

The good, the bad, and the Uber

It is undeniable that Uber’s introduction in 2011, when it first went live in New York City, revolutionised the rideshare industry with its novel business model. Its expansion into the United Kingdom in 2012 has further cut into the iconic black cab industry, whose drivers have spent years memorising driving routes only to get upstaged by GPS maps. However, this is not without pushback – a £500m group action lawsuit was launched against the San Francisco-based company in 2018, alleging that Uber had caused an equivalent loss in the black cab industry’s earnings over a 6 year period. In addition, the firm had been earlier hit by Transport for London’s (TfL) decision not to renew their transport license, citing several factors like its controversial “Greyball” blacklisting programme, poor corporate responsibility, and its failure to adequately address criminal offences committed by drivers.

And while the first decision not to grant Uber a license was reversed in 2018, TfL once again declined Uber’s license renewal in the wake of multiple security issues. Chief amongst them was a technical loophole allowing drivers to fraudulently upload their photos to other drivers’ accounts.

Cabbies, Commitments, Coronavirus

Judge Tanweer Ikram’s latest decision permitting Uber to operate in London was paired with a list of 21 conditions to adhere to. Amongst others, the conditions include monitoring of Uber’s contractual obligations as well as mandatory monthly reporting with regard to any breaches of these obligations. The decision was met with support from Sadiq Khan, London’s Mayor: “I can assure Londoners that TfL will continue to closely monitor Uber and will not hesitate to take swift action should they fail to meet the strict standards required to protect passengers,” while applauding the company’s commitment to improve its image. Elsewhere, the London Taxi Drivers’ Association has had a less-than-enthusiastic response, calling it a “disaster” for the city.

Moving forward, such good news for the firm is few and far between. The ongoing Covid-19 pandemic has impacted the taxi industry severely, with Uber reporting 1.8B pounds worth of losses in the second quarter of the year. In addition, there have been reports of Uber’s drivers being unable to claim sick pay even if they contract coronavirus. The difficulty in obtaining documentation or formal diagnoses based on governmental advice has hindered the drivers’ ability to claim sick pay. Such controversy has no doubt impacted Uber’s reputation, and regaining public trust will be difficult.

Having said that, the conditions provided are a step in the right direction. As long as Uber maintains its commitment to improved consumer safety, TfL will have no reason to withhold renewal of its license to operate. And with multiple global lawsuits on its hands, Uber doesn’t need any more trouble. Woe to the black cab industry.

By Ronald Poh

Uber in London: A History of Regulatory Conflict