Uber appeals for its London license to be reinstated
The possibility of Uber’s return to London is also expected to face fierce opposition from the London Taxi Drivers’ Association.
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Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.
2020-08-30 11:38

Uber was stripped of its license to operate in London last year as Transport for London said that its measures for verification of drivers’ identities were inadequate and raised concerns of passengers’ safety. The ride-hailing service has been engaged in a court battle with TfL ever since as it seeks its operating license to be reinstated.

Uber’s attorney said on Friday that TfL has left the final verdict to a judge and pledged a neutral stance on the company’s application for a new license to operate in London. The statement hinted at a prospect that the ride-hailing service might return to its largest market in Europe.

Uber appeals for its London license to be reinstated

According to Uber’s lawyer, Tim Ward:

“The question whether, in the light of the changes made by Uber London since the decision, it is now a fit and proper person, is one for the court.”

Uber says it prioritizes the safety of its passengers
Uber has reiterated on multiple occasions that the safety of its passengers and drivers has always been the company’s utmost priority.

According to the San Francisco-based company:

“We have worked hard to address TfL’s concerns over the last few months, including rolling out real-time ID checks for drivers.”

TfL refused to make any further comments on Friday. The possibility of Uber’s return to London is also expected to face fierce opposition from the London Taxi Drivers’ Association.

Uber’s trial in London is scheduled for September, in which the ride-hailing company will seek to establish that it has made the necessary adjustments to meet the licence requirements and its new management no longer has the gung-ho attitude that was criticized by the court last year.

In related news, Joseph Sullivan (Uber’s former chief security officer),is currently facing a lawsuit for covering a data breach in 2016 that affected 57 million of its riders and drivers who had their personal information compromised.

The state of California also recently bound Uber to categorize its drivers as employees that qualify for benefits and not independent contractors.

Uber published its Q2 earnings report in August
Uber published its financial results for the fiscal second quarter in the first week of August that posted its net loss to have contracted to about $1.80 billion. The company registered $2.24 billion of revenue and $1.02 of adjusted loss per share in its recently reported quarter. In comparison, analysts had anticipated Uber to see a lower $2.18 billion of revenue in Q2 and 86 cents of loss per share, as per Refinitiv.

Uber closed the regular session at a per-share price of $33.81 on Friday. On a year to date basis, it is currently 9% up in the stock market. In mid-March, when the impact of COVID-19 was at its peak an all non-essential traveling was restricted by the government, the company had tanked to as low as $14.82 per share.

Uber listed at the New York Stock Exchange in May 2019 at $41.57 per share and concluded the year at a per-share price of $31. At the time of writing, it has a market cap of $59.24 billion.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

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2020-08-30 11:38

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About the Author
Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.


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