London will not renew Uber's license to operate in the city when it expires at the end of September, threatening the ride-hailing service's future in one of the world's premier destinations.
According to Reuters, the Transport for London (TfL) said Uber poses risks to public safety.
"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," said TfL.
The regulator singled out Uber's approach to reporting serious criminal offenses, obtaining medical certificates, obtaining Enhanced Disclosure and Barring Service checks and its explanation for the use of secret software (Greyball) that could potentially block regulatory bodies from gaining full access to the app.
The ruling was supported by London Mayor Sadiq Khan.
"It would be wrong if TfL continued to license Uber if there is any way that this could pose a threat to Londoners' safety and security," said Khan.
The San Francisco-based company has 21 days to appeal the decision and will be allowed to operate up until the appeals process is complete. Based on comments made by Uber's general manager in London, Tom Elvidge, an appeal appears imminent.
"Transport for London and the Mayor have caved into a small number of people who want to restrict consumer choice," said Elvidge via Reuters. "We intend to immediately challenge this in the courts."
If Uber is forced out of London, as many as 40,000 drivers-or one-third of private hire vehicles in London-could be impacted.
According to Bloomberg, approximately 3.5 million people use the Uber app in London.
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Meanwhile, the decision is undoubtedly a big win for London's black cabs and drivers unions, who have been pushing for this result.
"No doubt other major cities will be looking at this decision and considering Uber's future on their own streets," said Maria Ludkin, Legal Director of GMB, the U.K.'s drivers union, via Bloomberg.
While losing London would be a mighty blow, Uber is still facing similar pressure in other key markets around the globe and the TfL decision could set a precedent for other regulators with concerns about how the company operates.
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