Uber's licence to operate in London was revoked on Friday, a surprise decision that will affect the 3.5 million people and 40000 drivers who use the app in the city.
The city's regulator, Transport for London, said it had denied the licence because Uber's "approach and conduct demonstrate a lack of corporate responsibility".
The licence will expire on September 30, although the company has 21 days to appeal against the ruling, and can carry on operating during the appeal process. "We intend to immediately challenge this in the courts," said Tom Elvidge, general manager of Uber in London.
If the decision stands, it will have a considerable impact on the company's global business. London is one of Uber's most established markets.
City officials cited Uber's use of a secret software tool called "Greyball" that the company built to avoid regulators. Uber was also faulted for not properly reporting crime and obtaining medical certificates.
"TfL has concluded that Uber London Limited is not fit and proper to hold a private hire operator licence," the regulator said in a statement.
The decision is a victory for the city's traditional black cab industry, which has been hurt by the proliferation of Uber drivers and has pushed for tighter regulation of the San Francisco-based ride-hailing service.
Taxi drivers must go through extensive testing before receiving a licence, whereas Uber drivers have fewer requirements.
"I fully support TfL's decision," said London's Mayor Sadiq Khan. "It would be wrong if TfL continued to license Uber if there is any way that this could pose a threat to Londoners' safety and security."
London's decision adds to the problems facing Dara Khosrowshahi, Uber's new CEO, who is juggling a host of controversies ranging from a lawsuit alleging the company stole self-driving car technology from Alphabet to a bribery investigation in Asia and a boorish company culture.
Uber has faced protests and resistance in many markets around the world, but London's ruling is one of the most aggressive steps taken by regulators against the popular service. The decision may also embolden regulators in other countries to take a tougher stand.
But the city's regulators and political leaders risk a backlash from customers who have come to rely on the Uber service, which is often cheaper and more convenient than hailing a black cab.- Bloomberg
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.