Friday, September 22, 2017

Uber's missteps lead to loss of London license

Customers aren’t the only audience that matters.

Transport for London, the governing body overseeing London’s transportation, is hitting Uber where it hurts.

The statement highlights TfL’s belief that Uber lacks “corporate responsibility” and TfL has therefore decided to not renew. London Mayor Saddiq Khan said the authorities had been “reluctant” to strip Uber of its license.

CNN reported:

"All companies in London must play by the rules and adhere to the high standards we expect -- particularly when it comes to the safety of customers," [Mayor Khan] said in a statement. "Providing an innovative service must not be at the expense of customer safety and security.”

The TfL’s statement pointed to four major points for revoking the license, including the use of a software program called Greyball. Uber spokesman Tom Selvidge rejoined that Greyball had never been used “or considered” in the U.K.

The New York Times wrote:

“Our pioneering technology has gone further to enhance safety with every trip tracked and recorded by GPS,” [Selvidge] said, adding that the company had “a dedicated team who work closely with the Metropolitan Police.”

The promise might be too little too late, after a string of PR debacles has left Uber’s corporate image on shaky footing.

The New York Times wrote:

Uber has faced an array of controversies, from allegations of sexual discrimination to its use of software to evade the gaze of authorities. Those and other issues contributed to the removal of its founder, Travis Kalanick, as chief executive this year, leading to a search that culminated in the appointment in August of Dara Khosrowshahi, the former head of the online travel site Expedia, as its new leader.

Now Uber has little social capital left to convince authorities that it has changed its ways. Yet among riders, Uber remains popular as a cheap and easy mode of transportation.

[RELATED: Arm your team with the latest crisis communications strategies and tools.]

Uber is now left to play politics, relying perhaps on consumers’ outcry and directly assailing London authorities, saying they “caved”:

Some activists believe Uber has failed to meet the basic standards required of any employer:

Others believe Uber is unsafe for women:

Some riders still remember the good things Uber has done in recent times of turmoil:

More of that kind of goodwill effort, coupled with a strong PR campaign, could change Uber’s fortunes—or perhaps a more substantive reworking of its culture is required.

Communicators, how would you respond to seeing your client or organization lose an operating license? Has Uber made the right moves this time? Please let us know in the comments.

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