What does Uber losing its licence mean for Londoners - and when will the service shut down?

Uber has lost its licence to operate in London after a shocking TfL decision to revoke its permission for the minicab app to put its drivers on the Capital's streets.

The car-hailing service, which provided a low-cost, convenient minicab service to millions of Londoners has faced controversy over how it has handled crimes committed by some of its drivers.

But what happens now? When does the service cut off — and just how final is this decision? We explain below.

When does the service cut off?

At the moment, Uber's licence expires on the 30th September.

However, the company is able to appeal TfL's ruling and has 21 days to appeal.

Uber will be able to operate until the legal process of the appeal is exhausted, with some experts predicting the process could take years.

The company said it will be appealing the ruling in court: “3.5 million Londoners who use our app, and more than 40,000 licensed drivers who rely on Uber to make a living, will be astounded by this decision. By wanting to ban our app from the capital Transport for London and the Mayor have caved in to a small number of people who want to restrict consumer choice.

"If this decision stands, it will put more than 40,000 licensed drivers out of work and deprive Londoners of a convenient and affordable form of transport. To defend the livelihoods of all those drivers, and the consumer choice of millions of Londoners who use our app, we intend to immediately challenge this in the courts… This ban would show the world that, far from being open, London is closed to innovative companies who bring choice to consumers.”

Why was the licence revoked?

Mayor Sadiq Khan, who heads up TfL, said after the shock ruling that “companies must play by the rules”.

TfL ruled that Uber was “not fit and proper” to hold a licence and had shown a “lack of corporate responsibility” around to public safety.

TfL also raised concerns over Uber’s approach to reporting serious criminal offences and how it obtained enhanced criminal records checks for drivers. 

Sadiq Khan said: "I want London to be at the forefront of innovation and new technology and to be a natural home for exciting new companies that help Londoners by providing a better and more affordable service. 

"However, all companies in London must play by the rules and adhere to the high standard we expect – particularly when it comes to the safety of customers. Providing an innovative service must not be at the expense of customer safety and security. 

"I fully support TfL’s decision - it would be wrong if TfL continued to licence Uber if there is any way that this could pose a threat to Londoners’ safety and security. Any operators or private hire services in London need to play by the rules"

Who will be happy about the ruling?

Black cab drivers have long complained that the app was crushing their business, while others have raised concerns about the congestion the additional cars have caused on London's streets as well as the extra pollution caused by the cars.

Many campaigners will be pleased, too, as they argue that Uber erodes workers rights and have argued that it should give its drivers the minimum wage and holiday pay. 

While some argue the app offers flexibility, others say it is exploitative. 

Uber is appealing a ruling  after two drivers, backed by the GMB union, after they won an employment against Uber which ruled that drivers were workers - not self-employed, and are entitled to the national, minimum wage and holiday pay. 

Which alternatives to Uber are available?

After Uber popularised the idea of using an app and making minicab and taxi journeys cashless, some other companies have also introduced apps and cashless paying.

If Uber loses the appeal, or you want to use an alternative, there are some below.

Green Tomato

Green Tomato labels itself as 'London's ethical car service'.

If you'll miss often getting a Prius with Uber, Green Tomato also offers that brand of car.

It offers in-car complementary wifi and phone chargers.

Gett

Gett hails black cabs, which are usually more expensive than Uber.

However, it does give you an upfront fare, so you know exactly what your wallet is in for before you book.

You can also book cars for later, and it uses cashless payment and an app.

mytaxi

mytaxi, previously Hailo, connects customers to black taxi cabs via an app, and includes cashless payment.

As passengers will be in a black taxi cab, prices are usually more expensive than Uber. However, they are offering a 30 per cent discount in light of the licence result.

mytaxi said in a statement: 

“We welcome the fact that TfL has taken action against Uber, who have time and again proven themselves willing to ride roughshod over London's regulations. We have long questioned whether Uber has been operating within the letter and the spirit of regulation in London. We believe that Uber’s business model is based on pumping large amounts of private equity money into maintaining artificially low prices in an attempt to drive out competition, in preparation for raising prices once it has gained a monopoly role in the market.

"mytaxi is an innovative app-based business operating Europe-wide, but we stick within the rules and work with customers, drivers and TfL to maintain the highest standards and the best possible experience. Today’s news means that TFL agrees with us that Uber has not been providing London's drivers and passengers with the standard of service they deserve, and so we welcome the news that TfL has decided to take action against companies that fail to abide by common standards.

"We believe Londoners deserve the highest standards in safety, accessibility with a premium service that’s second to none. As a result of this, we want to encourage Uber passengers back to black cabs- until the end of the month mytaxi will undercut UberX prices by subsidising passengers with a minimum 30% discount off the meter fare, while offering the same convenience of app hailing and a higher standard of service. Customers deserve a seamless, technology-enabled fleet of professional taxis with drivers who are proud to offer a superior service and have devoted the equivalent of a degree to their trade. That's what mytaxi is proud to offer in London.”

Addison Lee

Addison Lee is a minicab hailing app, which is usually more expensive than Uber.

However, it offers no peak-time surging, so at these times could undercut that app.

Its Ford Galaxy cars have free 4G Wi-Fi and in-car phone chargers as standard, along with fixed fares.

What about UberEats?

Many have asked about the food delivery service UberEats, which recently partnered with McDonald's to offer delivery for the first time from the popular fast-food chain:

However, a spokesperson for Uber has confirmed that when Uber’s licence runs out on September 30, UberEATS will continue to function as usual.  On the other hand, many Uber drivers also drive for UberEats, so if they find new employment if the appeals process fails, then there may be fewer UberEats drivers on the streets.