Earlier this week,Transport for London announced its decision to strip Uber (NYSE: UBER) off its operating licence over various breaches of passenger safety regulations.
Transport for London said that Uber is too risky to use due to constant security failures that put passengers in potentially dangerous situations.
Security Concerns
Transport for London found that Uber’s systems enabled unauthorized drivers to use their photos in authorized driver accounts.
Furthermore, this security breach allowed unauthorised drivers to pick up customers.
Transport for London said that the system allowed unauthorized drivers to pretend to be authorized Uber drivers in more than 14,000 trips.
Uber customers get inside a stranger’s car believing the driver to be their Uber driver.
Due to security failures in Uber’s systems, an unauthorised driver can pretend that they are your authorized Uber driver.
Moreover, Uber’s system allows suspended or fired drivers to create a new Uber account to continue carrying passengers.
Suspended or dismissed Uber drivers can continue carrying passengers simply by creating a new account.
Transport for London said Uber is not fit for London as its security system is easily manipulated.
Transport for London will scrutinise Uber throughout the appeal process.
Failures in Uber’s system raises serious safety concerns as it allows passengers to get into cars with drivers who are unlicensed, uninsured or suspended.
Transport for London stated that it cannot be certain that similar issues will not arise again if Uber continues to operate in London.
History
Transport for London has a controversial history with Uber. In 2017, Transport for London suspended Uber’s operating license amid safety concerns.
Uber successfully appealed against the decision of Transport for London.
As a result, Uber received a 15-month operating license. Later on, Uber secured a 2-month extension to its operating license which ended this month.
Meanwhile, Uber continues its legal battle against giving its drivers minimum wage and paid-holidays.
Transport for London raised concerns that Uber denies its workers basic employment protections.
Competition
There are currently more than 45,000 authorised Uber drivers and 3.5 million Uber riders in London.
Alternative transportation systems have been increasingly popular in London in the past five years.
Ride apps such as Bolt (CNSX: BOLT) and Kapten launched deals to compete with Uber. Furthermore, alternative transportation such as bikes and electric scooters create additional transportation options for Londoners.
Santander offers a bike hire system while Lime (STO: LIME) allows users to hire electric scooters using an app.