- London denies license to Ola due to Public Safety Concerns
- Ola earlier allowed unlicensed drivers to operate cabs
- Ola’s competitor, Uber license renewed after a long battle
London Transport officials declined to renew the Indian ride-hailing startup, Ola. The denial occurred due to safety concerns. Meanwhile, its competitor Uber won its renewal appeal against the London transportation authority. It will continue operating in London for the next 18 months, putting Ola in the backseat.
Transport for London (TfL), the city’s transport regulator, denied the renewal request from Ola. It stated that Ola had over 1,000 trips made by unlicensed drivers and failed to notify regulators even as they identified them.
“If they do appeal, Ola can continue to operate and drivers can continue to undertake bookings on behalf of Ola. We will closely scrutinize the company to ensure passengers’ safety is not compromised,” TfL’s director of licensing, regulation and charging, Helen Chapman said.
Based in Bangalore, India, Ola is backed by Japan’s SoftBank. It raised a massive $3.8 billion in funding over the years and has been a strong contender to the likes of Uber. It has been operational in London since February 2020 with over 25,000 drivers.
In London, it competes against Uber and traditional black cabs. It can continue operations while the company has 21 days to appeal the decision. Ola stated that the issues were a result of “use of different conventions in its databases” and fixing it is a priority.
Marc Rozendal, MD of Ola-UK, said “At Ola, our core principle is to work closely, collaboratively and transparently with regulators such as TfL. We have been working with TfL during the review period. We have sought to provide assurances and address the issues raised openly and transparently. Ola will take the opportunity to appeal this decision and in doing so, our riders and drivers can rest assured that we will continue to operate as normal, providing safe and reliable mobility for London.”
Ola vs. Uber
Uber earlier too faced a lengthy battle with the TfL regulators. Initially, the license was denied to the US-based startup back in 2017. This was due to several concerns including ‘Uber’s response to serious crimes.’
Although it was granted permission for 15 months. TfL, in November 2019, again declined to renew its license, which was renewed for 18 months post a legal judgment.
Even after the COVID-19 driven restrictions, London represents one of the biggest markets in the world for ride-hailing services. Ola isn’t always secured due to the numerous competitors and the strict policies of TfL. With multiple attempts to plead its case with the lawmakers, it is facing a hard time gaining the market.
