The Transport Authority of London (DFL), the capital’s transport authority, has banned Ola, an Indian taxi service related to public safety.
Cape has been operating in London since February.
The company reported several failures, including more than 1,000 trips by unlicensed drivers.
Ola said she would appeal the decision and had 21 days to do so. It can operate under the rules of appeal.
The Transport Commission said Ola did not report the failures as soon as it learned of them.
“Defects in Ola’s operating model have led to the use of unlicensed drivers and vehicles on more than 1,000 passenger journeys, which we have found through our investigations may have endangered the safety of passengers,” said Helen Chapman, Director, DFL Licensing, Regulation and Charging.
“If they appeal, Ola can continue to operate and drivers can continue to make reservations on Ola’s behalf. We will closely monitor the company to ensure that passenger safety is not compromised.”
The ride-hello company started operations in Cardiff in 2018 and has since spread to other parts of the UK.
“During the review period, we have been working with DFL to provide more guarantees and to address issues raised in an open and transparent manner,” said Mark Rosenthal, Ola’s UK Managing Director.
“Ola will have the opportunity to appeal against this decision, and in doing so, we can confidently assure our riders and drivers that we will continue to act naturally to provide safe and reliable navigation for London.”
Last week, DFL claimed the right to continue to operate in Uber London, a major competitor.
The ride-hailing company has been issued a new license to work in the capital, almost a year after the DFL rejected its application, on safety-related matters due to unlicensed drivers.
Westminster Magistrates’ Court has ruled that 24 Uber drivers shared their accounts with 20 people, leading to 14,788 unauthorized rides.