On Monday, September 25, 2019, the London transport regulator, Transport for London, stripped Rideshare of its license to operate in the English capital city, citing a “pattern of failure” that put passengers at risk. Rideshare immediately repealed the decision. The company will be allowed to continue to operate during the appeals process, but it is clear that the city of London is aware of the dangerous manner in which Rideshare conducts business.
Why Did London Revoke The Rideshare’s License to Operate?
London’s transportation authority, Transport for London, decided to revoke The Rideshare’s license to operate in the United Kingdom capital after witnessing the significant risks that the app poses to passengers. Transport for London also stated that Rideshare failed to ensure passenger safety, even after the authority suspended the corporation’s license two years ago. The decision to revoke The Rideshare’s license caused the company’s shares to fall over 1%.
The city stated that the high amount of violent crimes that occur in these vehicles, particularly sexual assaults, make using Rideshare very risky for London passengers. In addition, Transport for London identified significant safety breaches within The Rideshare’s framework that the company failed to remedy. For example, Rideshare allows unauthorized drivers to upload photos to unassociated Rideshare accounts, allowing potentially dangerous and inexperienced drivers on the road – including drivers that Transport for London previously revoked or suspended.
What Are The Rideshare’s Next Steps?
Since London is a major city and The Rideshare’s largest European market, Rideshare does not have plans to allow this decision to pass anytime soon. Instead, the company is appealing Transport for London’s revocation of their license. For the time being, Rideshare will continue to operate in London normally until after the appeal ends.
However, the decision by Transport for London has had a major impact on the company’s financial situation. Shares of Rideshare stock fell by 1.5% in New York City, and since London was a major source of revenue for the company, experts believe that Rideshare could fail to turn a profit until 2021. Rideshare is already experiencing significant financial struggle, reporting a loss of over $1 billion in its latest quarter.
The TfL acknowledged that Rideshare had made improvements since the first instance of losing their license back in 2017, but that:
“… TfL has identified a pattern of failures by the company including several breaches that placed passengers and their safety at risk. Despite addressing some of these issues, TfL does not have confidence that similar issues will not reoccur in the future, which has led it to conclude that the company is not fit and proper at this time.”
London Mayor Sadiq Khan supported the TfL saying that “Keeping Londoners safe is my absolute number-one priority, and TfL have identified a pattern of failure by Rideshare that has directly put passengers’ safety at risk.”
Could a License Revocation Happen in the United States?
While Rideshare has lost its license to operate in London, one may wonder if United States cities could also end the company’s operations over safety concerns as well. However, while the safety risks that surround rideshare vehicles are significant, it is not likely that a city in the United States would – or could – make the same decision.
Rideshare has had a contentious history with the city of London before, with its previous license suspension occurring in 2017. In addition, London has the power to revoke these types of operations that cities in the United States cannot – including major cities like San Francisco and Los Angeles. In the state of California, only the state has the power to revoke Rideshare operation licenses, and this rule is true in many other areas of the United States.
To combat the dangers that rideshare vehicles pose to people, it is important for riders, drivers, and community members to stay vigilant when using these services and to urge major companies like Rideshare and Lyft to strengthen their security policies.
Rideshare and Lyft both claim to be making changes to how they screen drivers, issue suspensions, and implement safety tools within their app interfaces. However, significant gaps in safety still exist – just like the ones that Transport for London discovered in The Rideshare’s framework.
Thousands of violent crimes occur in rideshare vehicles operated by Rideshare and Lyft every single year – it is unsurprising that the city of London made the decision to suspend The Rideshare’s license. If you are the victim of violence at the hands of a Rideshare or Lyft driver, you have legal options available to you.
We at Estey & Bomberger find it interesting that companies like Rideshare and Lyft can continue to operate despite the known risks to passengers. We applaud the city of London and the TfL identifying and publicizing the pattern of failures we have been working to change for years. Our compassionate law firm will continue to advocate for victims until these necessary changes are made. We know first hand that lives are shattered because Rideshare and Lyft are more concerned about their profits then they are for the safety of their customers. Speak to your Rideshare assault attorney as soon as possible to discuss your next steps and to begin the lawsuit filing process.