Transport for London’s decision not to renew taxi company Uber’s licence in London highlights the “growing societal concern around businesses governance structures and employment practices.”

Pensions and Lifetime Savings Association policy lead for stewardship and corporate governance Luke Hildyard also noted that it clearly highlights the potential for regulators to intervene when a perception takes hold that companies are not taking these concerns seriously enough.

“Pension schemes account for 57 per cent of all institutional investment in the UK and generally invest in assets for the long-term. When choices are made around which company to invest in, it is more critical than ever that they are fully aware of their business model and consider whether the companies approach could constitute a long-term risk,” he said.

TfL’s decision not to renew the licence centres on passenger safety and it has ruled that Uber is “not fit and proper to hold a private hire operator licence”.

TfL considers that Uber's approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications.

These include its approach to reporting serious criminal offences, how Enhanced Disclosure and Barring Service checks are obtained and its approach to explaining the use of Greyball in London - software that could be used to block regulatory bodies from gaining full access to the app and prevent officials from undertaking regulatory or law enforcement duties, among others.

The Private Hire Vehicles (London) Act 1998 includes provision to appeal a licensing decision within 21 days of it being communicated to the applicant. Uber London Limited can continue to operate until any appeal processes have been exhausted.

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