Uber Signs Electric Car Deal With Nissan While It Tries To Regain License In London

Ridesharing company Uber Technologies Inc UBER blamed “system or human error” for its failure to meet London regulatory demands in November 2019, according to a new document released this week.

What Happened

Transport for London (TfL), the transportation regulator that suspended Uber’s license in London in November 2019, has released the 62-page document it sent to the ridesharing company at the time.

The document, which provides details of why it rejected Uber’s application for a new license in London, says that the company failed to identify drivers’ fraud and ensure passenger safety.

Some drivers were able to replace their photos on the Uber app by manipulating the platform’s GPS settings, according to the document.

“At least 14,000 trips were undertaken by drivers who were not authorized to do so,” complained the London regulator in its report.

The regulator also said that some drivers were able to manipulate the system, “so that it appeared as though they were out of the UK at the time.”

Why It Matters

Transport for London had first banned Uber’s license back in 2017 for its lack of corporate responsibility.

In November 2019, Uber was stripped of its London license for the second time.

"We found Uber not fit and proper to hold a new private hire operator's license on November 25," said the regulator’s licensing director, Helen Chapman at the time.

The ridesharing company is currently preparing an appeal against TfL’s decision to revoke its London license. 

Uber To Offer Discounted Nissan Cars For London Drivers

Amid its fight to regain London license, Uber has signed a new deal with Nissan Motor Co NSANY  

As part of the deal, Uber will introduce 2,000 Nissan Leaf electric cars for its drivers in Britain.

The company said it would offer the Nissan electric cars to its drivers in the U.K. at a discounted price.

Price Action

Shares of Uber Technologies rose 0.97%, closed at $37.40 on Thursday.

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