Over 45,000 Uber drivers in London can finally continue their jobs after a judge ruled for the ride-hailing app to keep operating in the city for a 15-month period.
The ruling was decided on Tuesday, June 26, and is considered a public relations and legal victory for the new company chief executive officer, Dara Khosrowshahi, who took office last year.
Issues Concerning Uber
Uber reeled in unflattering headlines just after the new CEO took charge. Within weeks in his new post, London's transit regulator did not renew the company's license to operate in the city.
London's transit authority concluded Uber was not fitted to hold a license because the San Francisco-based company failed to do background checks on its drivers or report criminal offenses. Transport for London also mentioned that the company failed to display a lack of corporate responsibility.
TfL decided to take back Uber's license in September. It sets the rules and standards for vehicle's safety across the industry. Every single driver and operator is expected to follow the rules of the local government body.
Ruling On The Case
Judge Emma Arbuthnot said in her ruling on the case that the new business has faced numerous challenges, which became worst due to the gung-ho attitude of its previous leaders.
Arbuthnot added in her 13-page ruling that the popular app's new leader is a fit and proper person. She also said that new governance arrangements convinced her that through a shorter 15-month license, TfL can judge the company better.
The ruling was a nod to Khosrowshahi's efforts, which has changed the company's bleak future. The new Uber CEO previously worked with Expedia Group Inc. and was appointed in August last year, two months after its previous CEO, Travis Kalanick, resigned.
Uber also made through obstacles regarding its male-dominated culture, the suppression of a vast data breach, the use of a widely debated software to dodge regulators, and the mishandling of a rape case in India in 2014.
Tom Elvidge, general manager of Uber in the UK, said that the company will continue to work with TfL in order to answer its concerns and earn its trust while giving the best service to its customers.
Additionally, Elvige admitted in court that the decision made by TfL last September was right. However, the company has changed and is now worthy of an 18-month license.
London mayor Sadiq Khan said that due to TfL's move, the company has transformed the way it operates not just in London but also across the world. This includes changing its global governance structures completely and instigating fresh systems for reporting alleged crimes.
Uber has 3.5 million customers in the British capital.