Transport authorities in big cities are reasserting themselves over ride-hailing apps, e-scooters and electric bikes
“IT WAS as if the floodgates had opened,” says Mariusz Zabrocki, general manager for Kapten in London. When the French ride-hailing app invited drivers to register at two hotels in the capital in May, so many people turned up that the hotels kicked the firm out and Kapten had to decamp to a community centre in Vauxhall, near the River Thames. Customers, too, followed in their droves.
Uber has since fixed the problem but TfL said it could not trust its processes in future. Dara Khosrowshahi, its chief executive, called the regulator’s action “just wrong”. The company now has 21 days to appeal against the withdrawal of the licence, and then a court will decide. Other British cities, too, have said they are studying TfL’s decision and may follow suit. In the meantime Uber can continue operating.
Londoners will soon be able to pick from no fewer than five apps, some offering lower prices than Uber and leaving a higher portion of revenue for drivers. In addition to Uber, Kapten and Ola there is Bolt, an Estonian company, and ViaVan, which sells only shared rides . All the firms have strong backers with deep pockets and can be expected to burn cash to build market share for several years. Kapten and ViaVan are both backed by big German car groups. Bolt has raised money from Didi Chuxing, a Chinese ride-hailing giant. A Japanese group, SoftBank, stands behind Ola, Uber and Didi Chuxing and plans to fuel their expansion.
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