Uber’s share price plunges nearly 6% before trading

Transport for London (TFL) today refused to issue an operating licence to Uber because it puts passenger safety at risk. “While Uber has addressed some of these issues, we are not confident that similar problems will not occur in the future,” transport for the city said in a statement. This leads us to the conclusion that the company is not currently suitable for operation in London. ”

Uber's share price plunges nearly 6% before trading

Helen Chapman, head of licences, regulation and fees at Transport for London, said: “As the regulator of private rental services in London, we need to make a decision today on whether Uber is fit to hold an operating licence. Safety is our absolute priority and while we acknowledge that Uber has made improvements, it is unacceptable that Uber allows passengers to enter vehicles that may not be licensed or insured. ”

“Clearly, the emergence of these problems is worrying;

“If they choose to appeal, Uber will have the opportunity to publicly demonstrate to the magistrate whether it has taken sufficient steps to ensure that the potential security risks for passengers are eliminated.” ”

“If they do appeal, Uber will continue to operate during this period, but we will keep a close eye on them to ensure that management has strong controls in place to ensure that user safety is not affected in the event of any changes in the app.” ”

Uber’s troubles in London began in September 2017. At the time, Transport for London refused to renew its operating licence. Transport for London said Uber was not fit to hold a licence because its actions showed a lack of corporate responsibility for issues related to public safety and security.

After a series of efforts, the judge finally granted Uber a 15-month interim operation in June 2018, which expires on September 25 this year. The City of London then agreed to a two-month extension until 25 November. Today, Transport for London decided that Uber was not fit to have an operating licence.

Uber shares closed up 0.34 per cent at $29.56 yesterday. Uber’s shares were down 5.62 percent at $27.90 in pre-market trading today.

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