Author: Adam Satariano / Source: New York Times
LONDON — Uber won an appeal on Tuesday to regain its taxi license in London after agreeing to stricter government oversight, a crucial victory for efforts by its new chief executive to revamp the company’s grow-at-all-costs culture.
The closely watched case could serve as a template for other cities looking to extract concessions from Uber, the ride-hailing service that has upended the taxi industry worldwide, often by ignoring the concerns of regulators. The company suffered a major setback with that approach last fall, when the transport authorities in London — its most lucrative European market — withdrew its license. It has been able to continue to operate through the appeals process.
The court case has been a test for the conciliatory approach toward regulators taken by Dara Khosrowshahi, Uber’s chief executive. Mr. Khosrowshahi replaced the famously combative Travis Kalanick last year, and he has made it a priority to show officials throughout the world that the San Francisco-based Uber can comply with local rules.
On Tuesday, a judge at Westminster Magistrates’ Court in London bolstered Mr. Khosrowshahi’s campaign, reissuing Uber’s license, albeit for 15 months — less than the five years that is typical for taxi licenses. Uber had agreed to install new leadership in London, adopt rules to report incidents to the police, keep tired drivers off the road and share traffic data with the city. The company also named a new independent board to oversee British operations.
In reading a statement, the judge, Emma Arbuthnot, laid blame for Uber’s misdeeds at the feet of former managers who had a “gung-ho attitude” to “grow the business come what may.”
Judge Arbuthnot added that the 15-month license required Uber to prove its cultural changes were lasting. “The question,” she said, “is whether Uber can be trusted.”
The mayor of London, Sadiq Khan, whose office oversees transportation in the capital, declared victory in a statement. Along with the relatively short license, Uber was ordered to pay court costs for London’s transport authorities.
“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,” Mr. Khan said.
Tom Elvidge, Uber’s general manager in Britain, said in his own statement that the company was “pleased with today’s decision” and would work with city officials to “address their concerns and earn their trust.”
With more than 3.6 million people who use the service at least once every three months, London is one of Uber’s most lucrative global markets and biggest success stories outside the United States. The appeal removes a black eye as Mr. Khosrowshahi scales back in Asia and prepares for an initial public…
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