Ride-hailing row sheds light on contradictions

London’s low paid will foot bill as political rivals bicker over Uber ban

LONDON — In less that 24 hours, more than half a million people signed an online petition backing Uber’s fight to save its car operations in London, mirroring profound economic and political disagreements in Britain.

Transport authorities in London on Friday announced the decision to strip the United States-based ride-hailing service of its license from next week, citing its failure to report serious criminal offenses, conduct sufficient background checks on drivers and other safety issues.

Uber, which boasts 40,000 drivers in London and claims that 3.5 million people use the service, plans to appeal against the decision by Transport for London, which said the company’s approach and conduct were “not fit and proper” to hold a private vehicle hire license.

The decision was backed by the British capital’s black-cab drivers and Mayor of London, Sadiq Khan, who said anger from Uber customers and drivers should be directed at the company.

However, the dispute illustrates deep contradictions.

First, the rift shows the gulf between cheaper ride-hailing services and traditional blackcab operations in London.

The Uber service has become the darling of many Londoners, but in a city filled with well-known black cabs and minicab firms, there are plenty of alternatives.

“But in the bigger picture, this is a potentially defining confrontation between the demand for cheap services and the power of regulators,” The Times newspaper said on its opinion page on Saturday.

In London, where the cost of housing means many people travel long distances to work unsocial hours for low pay, Uber’s fares and generally prompt service have been a lifeline.

To the Uber riders, the newspaper said, “TfL will look as if it bowed down to pressure from the capital’s infamously protective black cabs.”

Many Uber users have to rely on the app when public transport is out of reach in London.

“Before the arrival of Uber, Britain’s taxi market was flabby and sclerotic,” The Times said. “Black cabs overcharged for expertise that had been supplanted by satellite navigation technology while minicab firms made customers wait.”

Second, the dispute demonstrates deep disagreements between key members of ruling and opposition parties.

The Uber license was revoked by the TfL, headed by Khan, a leading figure in the opposition Labour Party, who said on Friday that “all privatehire operators in London need to play by the rules. The safety and security of Londoners must come first”.

However, The Times said the timing of the decision was “undeniably suspect”.

“Mr. Khan has just been told that he will be given a platform at the Labour Party conference and TfL’s decision is sure to earn him a rousting endorsement from an audience of activists and trade unionists,” the newspaper said.

The TfL was immediately rebuked by Greg Hands, a Conservative Party politician and British minister for London.

Hands accused Khan of putting 40,000 people out of work and leaving 3.5 million users of Uber stranded “at the flick of a pen”.

“A blanket ban will cause massive inconvenience to millions of Londoners, all the while showing that the mayor of London is closed to business and innovation,” he said.

The US company has three weeks to appeal, and until the case is resolved, it can continue operating.