Uber losing its London license was a shock to the entire industry. According to Transport for London (TfL), London transport authority, the company demonstrated lack of corporate responsibility in matters which have potential public safety and security implications. For instance, TfL pointed out the Uber’s approach to criminal offenses, disclosure and barring checks and medical certificates. In particular, TfL cited the company’s use of the Greyball software that blocks authorities from gaining full access to the Uber’s app for law enforcement.
But this decision will have a far-reaching effect on the entire industry considering the share of the market that Uber was serving. When the company invaded the London transport industry 5 years ago, it was harshly and excitingly received in equal measures. With their Uber software, the company was able to revolutionize the transport not only in London but the world over. The company was able to reduce the prices significantly and end up being the dominant force. The main beneficiaries had been the customers, and this is a major mark it has left behind. But while the competition celebrates as Uber loses right to operate in London, hard times lies ahead for the industry.
How Will the Absence of Uber Affect Travel to London
Everyone acknowledges that Uber controlled a huge section of the market. In fact, it was one of the dominant players in the London transport industry. It’s unlikely that any company will be able to occupy the left space instantly. One good thing that Uber did was to introduce the software; a trend that most of its competitors adapted to. Now that it has left the market, the rest of the service providers will be fighting over the control of this section. We are likely to experience dropped changes as the service providers try to woo customers previously serviced by Uber.
With Uber out of the market, we can also expect the prices to go up. This can be triggered by the huge number of travelers most of whom were previously riding with Uber. As the rule of supply and demand stipulate, an increase in demand results in a price increase. This will be bad news for the customers who had enjoyed relatively low prices for years.
The bottom line is the exit of Uber in such a short time will definitely destabilize transport in London. Being a dominant player in the market, it will be difficult for the remaining companies to service the high demand in the first few months. It will take some time for the market to stabilize but the industry has a way adjusting itself.