Private car hire company Uber has lost its licence to operate in London. The shock announcement was made by Transport for London (TfL) earlier today, but Uber Eats — the restaurant delivery arm of the business — will not be affected by the ruling, a spokesperson told Metro newspaper.
An Uber spokesperson is quoted as telling Metro.co.uk: “The licence only applies to private-hire operations as it’s granted by Transport for London so Uber Eats is not impacted by the licence — or lack of.”
Uber Eats, which partners with McDonald’s and Itsu in London, has confirmed that TfL’s decision relates only to the renewal of the private car hire licence and food delivery will continue to operate. Uber Eats is a relative newcomer to the London delivery market which has recently shown signs of dramatic growth, competing with Deliveroo, Amazon and Just Eat. The latter’s share price rocketed, jumping by 30p in the wake of today’s ruling.
TFL said the Uber was “not fit and proper to hold a private operator licence” and had shown a “lack of corporate responsibility.” London Mayor Sadiq Khan said the company “needs to play by the rules.”
Uber have announced that they will appeal the ruling, which comes into effect on 30 September. The private hire car arm of the business can continue to operate for as long as the appeal process takes to conclude.