Uber Gains Approval In London By Transport Agency

Uber iPhone app screenshots

Transport for London (TfL) has ruled in favor of Uber, which allows the taxi-booking app company to continue operations legally in the capital city of England. TfL rejected claims from traditional taxi drivers in the city that the Uber smartphone app violates local regulations.


TfL decided smartphones that run the Uber app are not taximeters within the definition of the legislation. 'Smartphones that transmit location information between vehicles and operators have no operational or physical connection with the vehicles,' said the regulator in a statement.


TfL stressed that Uber's stay is temporary until a British civil court decides on the taximeter issue. This case will likely be heard in the fall. However, Bloomberg is reporting that the Licensed Taxi Drivers Association (LTDA) filed criminal proceedings in London against six Uber drivers today, which blocks transport officials from seeking guidance from the civil court until the criminal cases are finished.


To appease taxi drivers in London, Uber is allowing the city's signature black cabs to participate in its platform. Some of the black cabs have already signed up to use Uber, but many others have resisted out of protest.


Uber went through the largest compliance inspection in TfL's history, which involved 26 compliance officers going through files at Uber's 20-person London office for 2 days straight. The officers audited driver records, insurance documents and vehicle licensing. TfL audited Uber because a competitor complained that out of the thousands of drivers, one single driver was not insured.


There was no specific incident that occurred to cause the audit and the uninsured driver assured he was covered by a policy that he paid for from the competitor. The driver also offered that documentation to Uber. Regardless, the competitor argued whether its insurance policy can be used by a driver that is also on the Uber platform. Uber holds an umbrella insurance policy that would have provided coverage in the event of a gap anyway.


'TfL is looking into it, and that's right, it's their job as the regulator. As we've said before, safety is our number one priority, so we take these things very seriously,' said Uber in a blog post. 'We are absolutely certain that the driver in question was fully insured and that this specious claim will not hold up in court. We will clearly show that Uber is one of the safest ways to get around London, no matter what the big transportation incumbents would like to convince the public of.'


Regulatory Opposition Across The Globe The LTDA accused Uber of operating in a 'grey area' and is circumventing current legislation that governs private-hire taxis. The LTDA claims that Uber's drivers use a specific device that is 'programmed to be a meter,' which is prohibited by the Private Hire Vehicle Act. Last month, thousands of taxi drivers blocked roads around Trafalgar Square as part of a massive protest. Uber saw an 850% increase in sign-ups because the protests in London raised awareness of the brand.


Uber is battling numerous taxi cab associations around the world, including Australia, Canada, the U.S. and several countries in Europe. This past week, judges in Pittsburgh said that Uber and Lyft will have to shutdown operations in the city until permissions are given by the Pennsylvania Public Utility Commission. Ever since Uber launched, it faced opposition in California, Virginia, Washington D.C., New York, Chicago and Seattle. Two months ago, a government authority in Australia called Transport for New South Wales, ruled that Uber drivers and vehicles must operate within the Passenger Transport Act. In December 2012, government officials in Toronto charged Uber with 25 licensing offenses. And traditional taxi drivers in Berlin and Brussels won civil court rulings that challenged Uber's operations. Some of these battles are ongoing, but that has not stopped the company from rapidly expanding as it is now available in 39 countries.


Uber is currently valued at $17 billion after raising $1.2 billion last month in a financing round. Some of Uber's investors include Google Ventures, First Round Capital, Benchmark Capital, Goldman Sachs, CrunchFund, Kleiner Perkins, Fidelity Investments, Wellington Management and Amazon.com founder Jeff Bezos.


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