A London court gave Uber Technologies Inc a shorter-than-usual license to keep operating in the British capital, accepting on Tuesday the firm’s claim that it has changed its aggressive corporate tactics and is now a more responsible corporate citizen.
However, Chief Magistrate Emma Arbuthnot granted an operating license lasting just 15 months, short of the five-year permit Uber had been seeking.
That means the company will remain under scrutiny and serve a probation period of sorts in meeting the terms of regulators at Transport for London (TFL).
“The rapid and very recent changes undergone by [Uber] lead me to conclude that a shorter period will enable TFL to test out the new arrangements,” the judge wrote in her ruling.
London transport officials had revoked Uber’s license in September last year.
They had objected, among other things, to the company’s failure to report serious criminal offenses and its use of technology to allegedly evade law enforcement officials.
In this week’s appeal, the firm admitted it had been wrong and apologized.
That was an important factor to Abruthnot, who said Uber would be monitored by London transport authorities and ordered Uber to pay ￡425,000 (US$562,000) in court costs.
London Mayor Sadiq Khan said that Transport for London’s actions had been vindicated, proving the regulator was correct in rejecting the license last year.
“Uber has been forced to overhaul the way it operates not just in London, but across the world, including completely changing its global governance structures and implementing new systems for reporting alleged crimes,” he said.
“As mayor, I’m working to ensure that London continues to be at the forefront of innovation and a natural home for new and exciting companies. But no matter how powerful and how big you are, you must play by the rules,” Khan said.
Under chief executive officer Dara Khosrowshahi, Uber has tried to shift the company from its combative stance with municipal officials soon after London rescinded its license.
Tom Elvidge, general manager of Uber in the UK, said the company would continue to work with TFL to address their concerns and earn their trust, while providing the best possible service for our customers.
However, Gerald Gouriet, representing the Licensed Taxi Drivers Association, said an “Uber in sheep’s clothing” had appeared before the court.
The ruling came as no surprise to experts monitoring the company, such as John Colley of Warwick Business School.
Khosrowshahi had been at pains to put the years under former chief executive officer Travis Kalanick behind the company and focus on Europe and North America, Colley said.
Uber has already withdrawn from Russia, China, Southeastern Asia and is believed to be negotiating an exit from India to curtail the loss of cash in markets where they feel they cannot win, he said.
“Ultimately Khosrowshahi needs London,” Colley said. “If he loses it, then many other UK cities may feel confident enough to kick out the disruptor.”
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