It has been an eminently forgettable year for taxi-hailing giant Uber, and one of the most damaging developments has been the loss of its private-hire license in London, United Kingdom. Last month, the local transport authority Transport for London (TfL) refused to extend the company's license and plunged it into chaos, as they scrambled to save one of their most lucrative markets. Now, Uber's new CEO Dara Khosrowshahi is going to be in London Tuesday in order to speak to transport authorities so that the company can resume operations in London.
CEO flies down
Ever since Travis Kalanick was ousted as the CEO of Uber, the company has lurched from one trouble to another, and new CEO Dara Khosrowshahi has his hands full. On Tuesday, he is going to conduct meetings with transport regulators in London so that the ban on Uber can be overturned as soon as possible. The fact that the CEO is flying down to conduct these emergency meetings is a clear indication of how much the San Francisco-based company values its business in London.
In addition to that, Khosrowshahi is also in the midst of a boardroom power battle with former CEO Travis Kalanick, and the latest intrigue in London means that he has landed into a bit of a mess as far as the company's state of affairs is concerned.
Uber's drivers have been protesting in London. Some are against the ban that has been imposed by TfL, while some others are protesting poor pay and demanding that Uber recognize them as employees instead of contractors.
Crucial meetings
Although it is true that it will take Dara Khosrowshahi's considerable negotiating skills to get Uber cabs back on the streets of London, the company might have a lot of leverage when it comes to negotiations.
A report by Bloomberg has cited an ORB survey commissioned by Uber, according to which among the private-hire drivers working in London, four out of every five claim Uber as their main source of income, and hence, the ban will lead to widespread unemployment for drivers. However, TfL's contention that Uber has not abided by the regulations and that it is not "fit and proper" to continue to operate in London could mean that the new CEO of the company has his task cut out.
In the meantime, competitors are going to muscle in on Uber's turf as its cabs continue to be out of circulation in London, and the Daimler-owned service known as MyTaxi seems to have warmed up to the idea. MyTaxi's general manager in the UK, Andy Batty, even went on to criticize Uber. Per Bloomberg, Batty said, "We have long questioned whether Uber has been operating within the letter and the spirit of regulation in London.”
