Uber Technologies Inc. was struck with a stunning rebuke in London, where regulators revoked its license to operate and chastised its corporate culture, adding to the expansive list of controversies facing the beleaguered ride-hailing company.
London is one of Uber’s largest and most lucrative markets, with 40,000 drivers and 3.5 million people who use the app once every 90 days. The broadside is a striking move against the free-wheeling business practices that contributed to the ouster of former chief executive officer Travis Kalanick. The company is also grappling with allegations of sexual harassment, labor-rights abuses, skirting regulation, bribery of government officials and a lawsuit accusing it of stealing self-driving car technology.
Transportation authorities in London concluded Uber isn’t “fit and proper to hold a private hire operator license.” The agency cited a failure to do proper background checks on drivers, report crimes and a program called “Greyball” used to avoid regulators.
The company has 21 days to appeal and can continue to operate during the appeal process. “We intend to immediately challenge this in the courts,” said Tom Elvidge, general manager of Uber in London.