Uber Was Stripped of its London License

Uber shares are down nearly 5% on US OTC trading after the company's shared-travel app was stripped of its London license, BNR reported.

The company lost its license to operate in the UK capital on Monday as the London Transport Regulator revealed that more than 14,000 uninsured trips had been made.

Some of these journeys were undertaken by unlicensed drivers, including one person whose licence had been previously revoked by TfL, while another failure allowed "dismissed or suspended drivers to create an Uber account and carry passengers", Inews UK reported.

London's transport regulators say it has decided not to renew Uber's license for the British capital because of "a number of breaches that put passengers and their safety at risk". The transport regulator added that the shared travel company did not meet the necessary licensing requirements.

London is Europe's largest market for Uber, and Uber London Ltd. is likely to appeal the decision and continue to act during litigation.

In September 2017, the London Transport Regulator announced that it would not grant Uber a five-year London work permit, but then a British court granted a 15-month license extension to the company.

Uber now has 21 days to appeal the decision, during which time it will be able to continue its activities, as well as during a possible appeal process. The company may attempt to make changes to show magistrates that it is capable and appropriate to perform its business at the time of appeal.