Uber Wins a Lawsuit in London
Uber is Granted an 18-Month License
Uber (UBER) won an important legal battle in London. In November of 2019, Transport for London, the UK capital’s transportation regulator, revoked the rideshare giant’s taxi license. The British regulatory group was particularly concerned about unauthorized drivers picking up passengers.
Uber was allowed to continue operating while an investigation unfolded. Yesterday, a judge ruled in favor of the company and restored its license for 18 months. On news of the decision, Uber’s shares rose 6% in premarket trading. Its shares ended the day up 3.21% yesterday.
London is Uber’s Largest European Market
There are about 3.5 million Uber users and 45,000 Uber drivers in London, making it Uber’s largest European market by a long shot. A ban in London would have been a huge blow for the company.
In response to regulators’ concerns about safety, Uber put a number of new security features in place, including a system to check drivers’ identities with a combination of facial recognition technology and human reviewers.
Uber Faces Other Lawsuits Around the World
The case in London is one of several lawsuits Uber is dealing with around the world. In California, Uber is fighting legislation that would force it to classify its drivers as employees instead of contractors.
The company is up against a similar lawsuit concerning minimum wage, holiday pay, and other benefits for its drivers in the UK. The case has made it to the country’s supreme court and a verdict will likely be released by the end of the year.
Uber was an early leader in the gig economy. The results of the lawsuits facing the company could result in changes for gig workers across a variety of sectors. For now, Uber will be permitted to continue operating in London, and investors seem to be cheering the news.
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