London to Ban Uber
London's transportation regulator stated that as Uber's operating license expires on September 30th, they will not be renewing. Uber is believed to be "not fit and proper" to hold a private-hire operator license. The regulator also noted other issues such as their "lack of corporate responsibility in relation to a number of issues." The demand for Uber has not declined, the Government just sees Uber as being more of a risk. This could have a positive impact on taxi services and other public transportation as Uber customers would have to find another way to get around. This could also have a huge affect on the economy as Uber in London employs 40,000 people. London not allowing them to renew their license means 40,000 people are out of jobs.
Curious to see if this impacts Uber stock, "$UBER," and if we see drops after such a large expansion city like London loses its service ability. The employees could all just become tax drivers if they want to stay in the same are of work.
ReplyDeleteThis seems like a questionable decision, especially because of the significant employment opportunity that UBER provides for the city. One would certainly think that this will have at least a impact on consumption in London, which could have a slight impact on the economy of London and possibly England as a whole. However, London may be open to other taxi services such as lyft, which could help reboot the industry and employ many of these displaced UBER drivers.
ReplyDeleteTaxi services in London by regular black cabs are a fortune-so with Uber no longer supplying taxi services and not much other competition for taxi services, this will make taking taxis very pricey. Demand for cabs has gone up also due to some people afraid to ride the public transport since the terror attacks. This also raises prices.
ReplyDeleteTaxi Cab drivers will now have more job security but the uber service was a great way for people to get around. I know many people that use the uber service, and it is sad to see 40,000 people lose their job. The price for cabs will also be on the rise due to lack of competition
ReplyDeleteAll this does is create a closed market into the transportation industry, shutting down Uber will make Cab prices rise and probably bring down demand for private transportation, really a lose-lose for London.
ReplyDeleteI've never been to London so I'm not sure how good their taxi services are, however I don't think it's smart to create a closed market in the transportation industry because that often leads to worse conditions for the people. Yes many yellow taxi drivers have lost jobs due to uber but the increase in quality of drivers combined with the lower prices I think benefits people and the economy more.
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