Uber share price slides to near-record low after losing London licence
The ride-hailing company saw its stock fall 3% in pre-market trading, nearing a record low, after its London licence was not renewed by Transport for London.
Uber saw its share price fall 3% to $28.66 in pre-market trading – nearing a record low – after its London licence was stripped by Transport for London (TfL).
TfL refused to renew the ridesharing company’s private hire operator’s licence after it found that more than 14,000 trips were taken by drivers that had faked their identity on the Uber app.
The transport authority said that while Uber has made a number of positive changes and improvements to how it operates, a ‘pattern of failures’ has put passengers safety at risk.
‘Despite addressing some of these issues, TfL does not have confidence that similar issues will not reoccur in the future, which has led it to conclude that the company is not fit and proper at this time,’ TfL said in a statement on Monday.
Looking to trade Uber? Open a live or demo account with IG.
Uber to appeal TfL’s decision
Uber will continue to operate in London due to the ridesharing company looking to appeal the decision by TfL.
When TfL first rejected Uber’s licence renewal, in September 2017, the firm eventually persuaded judges to award it a 15-month licence to continue. The company's management is hoping that it can convince judges a second time round to renew its licence.
‘While we recognise Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured,’ Helen Chapman, Director of Licensing, Regulation and Charging at TfL said.
'It is clearly concerning that these issues arose, but it is also concerning that we cannot be confident that similar issues won't happen again in future.
‘If they choose to appeal, Uber will have the opportunity to publicly demonstrate to a magistrate whether it has put in place sufficient measures to ensure potential safety risks to passengers are eliminated,’ she added.
You can go long or short Uber with IG using derivatives like CFDs.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.