Uber Technologies Inc (NYSE:UBER) stock dropped -5.09% but it avoids ban in London and only gets a two-month License

Uber Technologies Inc (NYSE:UBER) stock dropped -5.09% and closed at 31.3 on Tuesday. The stock opened the session at $33 and touched its highest price point at $33.15. Its recent trading capacity is 1822 shares versus to its average trading volume of 10047112 shares. The company’s stock’s lowest price point for the session stood at $31.01.uber traded as low as $ 30.67 in the past 52 weeks, and shares hit its peak level to $47.08.

Uber Technologies Inc (NYSE:UBER) gets just a two-month license to resume operations in London, however it survives a straight ban till November.

Transport for London has renewed Uber’s license for just two months, which was expiring on Wednesday. Now the company has right to operate in London for more two months instead of a ban. 

Transport of London (TfL) said Uber’s license is extended temporarily and the company has been requested to provide additional information. TfL indicated now Uber will have to meet new conditions related to passengers’ safety.

Uber’s license was terminated by Transport of London (TfL) in 2017, it said company failed to report serious criminal offences and driver background checks, which prompted to legal action against the firm. Then last year London court granted Uber probationary 15-month license to continue operations in London after the firm advocated that it had undercut the business model.

Mayor London and the Chairman of TfL, Sadiq Khan said new license comes with “new conditions to ensure passenger safety,” which includes insurance and driver documents. He further added, “Uber London Limited has been granted a two-month private hire operator license to allow for scrutiny of additional information that we are requesting ahead if consideration of any potential further licensing application.”

Now Uber will be able to know after two months ending in November whether they will be able to resume the operation in London with straight one-year license or not.

However, Uber’s regional general manager Jamie Heywood said “We will continue to work closely with TfL and provide any additional requested information.” He also said, “Over the past two years, we’ve launched a range of new safety features in the app, introduced better protections for drivers and our clean air plan is helping to tackle air pollution.”

While the Uber’s regional officer Steve Garelick said, “A two-month license extension is no goof for anyone – it leaves uncertainty for drivers and passengers, meanwhile Uber still operates an unsafe model on the streets of London. Transport for London has simply kicked the can down the road and shown no regard for drivers or public safety.”

The license rejection can lead to loss of many jobs as about 45,000 drivers are affiliated with Uber in London.

Ride sharing firm is facing many challengers after resistance from regulators and tax charging services in number of countries.

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