Uber Technologies Inc [NYSE: UBER] is in the red pre-market. This follows news that the company has lost its license to operate in London, one of its most important markets. While denying Uber the license, the London transit authority has stated it still has concerns about that unauthorized drivers could use the App and put passengers at risk. The regulator had noted that uninsured drivers had ferried customers in about 14k trips.
While this is a big blow considering that London is Europe’s biggest market, the company announced that it would appeal the ruling. This means the company has room to continue with its operations until the legal challenge is heard and determined. Uber’s regional general manager, Jamie Heywood has stated that the decision not to renew the license was an extraordinary one. He also termed it wrong and asserted that they would appeal. The company has 21 days to launch an appeal following this decision.
Jamie added that, in the last two years, Uber has significantly changed how it conducts business. He added with a message to the company’s 45k licensed drivers that operations would continue and they would do everything possible to work with the TFL to resolve the current issues.
Besides the competition and other market related issues, last week it emerged that one of Uber founders was on a selling spree. According to Bloomberg, Travis Kalanick sold about $578 million worth of Uber stock in just 3-days. By the end of the week, that figure had risen to $1.5 billion.
Uber has been on a downward spiral even prior to the London announcement. The company has been making losses, and the competition has been getting stronger. Since its IPO when it opened trading at $42, it has lost by over 40% when compared to Friday’s closing price of $29.56 as seen in the chart below.
About Uber Technologies Inc
Uber Technologies Inc is a technology company that offers ride sharing among other services. It has its headquarters in San Francisco, California.