Uber London License Hinges on Proving It’s Not a Reoffender

(Bloomberg) -- Uber Technologies Inc. returns to a London court this week as it fights to continue operating in the British capital.

On Tuesday, Uber will begin a three-day trial at Westminster Magistrates Court by outlining why Transport for London’s decision to strip its operating license should be appealed. It’s the second time the ride-hailing app has faced a legal battle to stay in London in two years.

Now, it will have to persuade the magistrate that it’s not a repeat offender, after the court criticized the “gung-ho attitude” of the previous management team at its 2018 appeal.

Uber was granted a 15-month license by the court two years ago, far less than its previous five-year permit and shorter than the 18-month approval it requested. In November, the regulator revoked its license for the second time over safety concerns, threatening the firm’s ability to operate in its biggest European market.

Uber and TfL will give testimony Wednesday, followed by arguments from the Licensed Taxi Drivers’ Association, an interested party in the case, and closing submissions by Uber and TfL. Uber’s main witness will be Jamie Heywood, its regional general manager for northern and eastern Europe.

‘Moving Safely’

“We have worked hard to address TfL’s concerns over the last few months, rolled out real time ID checks for drivers, and are committed to keeping people moving safely around the city,” Heywood said in an emailed statement.

A ruling on the case could come as soon as Friday, but is more likely to come early next week.

Uber has “consistently failed” in its duty of care to passengers, Steve McNamara, general secretary of the LTDA, said by email. The LTDA, which represents around half of London’s black-cab drivers, says its lawyers will highlight Uber’s failings to the court this week.

“A leopard doesn’t change its spots and I have no doubt that Uber’s culture remains as toxic as it has ever been,” McNamara said.

Last month, TfL signaled it would take a neutral stance in the case, after an attorney for Uber said the regulator plans to leave the final decision to a judge.

Helen Chapman, TfL’s director of licensing, regulation and charging, said in a statement that “it will now be for a magistrate to determine they are fit and proper.”

It’s the same position that TfL took last time, but won’t mean that Uber gets a free ride. The LTDA said in court filings last month that it wanted to explore “more critically” than TfL the reasons for Uber’s “many breaches of license” conditions.

Should it lose, Uber will be able to continue operating while it appeals the decision, a process that can take years.

Employment Rights

The London license isn’t Uber’s only worry in the U.K. market. Later this year, the Supreme Court will probably rule on the company’s battle over drivers’ employments rights. The case won’t be affected if Uber loses its London license, James Farrar, general secretary of the App Drivers and Couriers Union and co-claimant in the employment case, told Bloomberg Radio on Monday.

“I’m confident that Uber will continue to maintain its license but if it doesn’t, I don’t think our battle will become irrelevant because all that will happen is that Softbank-Uber will be replaced by Softbank-Ola or any number of the other apps that are lined up with VC money behind them,” he said, referring to SoftBank Group Corp.’s backing of both Uber and its Indian-based rival Ola Cabs. “It’s the business model that we’re challenging,” he said.

Uber’s fighting similar cases elsewhere, including in its home state of California, where a law designed to reclassify its drivers as employees would upend its business model and provide momentum for similar pushes in New York and Massachusetts to provide labor protections. Uber challenged the California law and, following a dramatic 11th hour reprieve last month, pushed the decision to California residents. They will vote this November on a competing ballot measure written and bankrolled by Uber and other gig companies.

©2020 Bloomberg L.P.