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Uber London Contract Extended in Brighton

Transport for London banned Uber in September. The Uber London ban prompted new Uber CEO Dara Khosrowshahi to begin negotiations in the United Kingdom to try to be able to keep the market. However, last week, Brighton, a seaside resort location on England’s south coast, announced a six month extension for Uber.

Transport for London bans Uber

The ban came in the form of Transport for London refusing to renew Uber’s license to operate in London. They cited a number of issues with Uber’s business practices, including their treatment of employees. Other red flags that led to Uber being deemed not “fit and proper” to operate in the city included questionable software known as “greyball.” This software could be used to evade law enforcement supervision, Transport for London said. Uber denied their use of the software for this purpose.

Uber filed an appeal to try to reverse the decision—unsurprising, since the company has over 40,000 drivers in London. The new CEO has reportedly flown to London to discuss the issue.

Brighton Extends Contract

Brighton, the seaside location on the British south coast, only has 40 or so Uber drivers. However, last Thursday, they decided to extend Uber’s contract by six months. In that time, they will try to negotiate a compromise that will allow Uber to stay in the city.

In spite of the low number of drivers from Brighton, Uber sees around 10,000 riders each week, according to Fred Jones, the United Kingdom Head of Cities for Uber.

Brighton and Hove City Council said they will await the ultimate decision from Transport for London. After that, they will decide whether to get rid of Uber. This move on Brighton’s part is a morale boost for Uber. In addition, the appeals process in which they are currently engaged with Transport for London could take as long as a few years.

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