In a decision backed by the Mayor of London, Sadiq Khan, TfL announces that they will not renew Uber’s license to operate in London. The decision comes after Uber have been campaigned against because of their failure to properly vet drivers, unfair worker’s conditions and causing more congestion and collisions on the road. They have had a series of sexual assault allegations that forced the CEO to quit.
Despite their dreadful employment practices and the safety issues caused by unregulated vetting of drivers, these aren’t the reasons to abhor a company such as Uber. It is their business model that is dangerous for other firms.
Uber’s current business model is set on making a loss and this is done on purpose because they aim to purposefully undercut and destroy the competition. It begins by them making a loss and drawing customers over because they are cheap, as their market share grows the prices begin to steadily rise but the increase is unnoticeable. This is until the competition is gone or significantly reduced giving them a monopoly on a market, meaning they have control over how much consumers pay and end up jacking up prices.
It’s a common practice for new companies with wealthy backers to create a monopoly and dominate a market. Uber’s aim is not to give fair prices to the public but to manipulate them into giving them a monopoly over the market and subsequently control the prices to stay high to increase profit. The latter is also done through means of tax avoidance, after they found a loophole in both EU and UK law that allows them to avoid paying any tax, and using the ‘gig economy’ to exploit employees and claim them as ‘self-employed’.
The idea behind Uber is good, but the company itself are dangerous to local firms across the country and their practices are unsafe for the public, after it was revealed that they are using their own Greyball software to deceive law enforcement, when regulators try to track drivers, Uber would show them a fake version of the app. London’s Black Cabs have since released their own app to try and compete with Uber recently, giving price discounts for those who used the app. https://gett.com/uk/