Uber backlash: Sheffield follows London by suspending licence

Sheffield has become the second British city to suspend Uber’s licence after the ride-hailing app repeatedly refused to respond to questions about its management.

The city council said the firm can continue to operate until 18 December - and if it chooses to appeal against the decision can run until the appeal is heard.

Uber said the suspension was the result of an “administrative error” which it hoped “can be resolved quickly”. However, it comes at a critical time for the company both in the UK and around the world.

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Last month, Uber lost an appeal at an employment tribunal when the court ruled drivers should be treated as workers, entitled to a minimum wage and benefits such as holiday pay, not “independent drivers”.

The Financial Times says the ruling could prove “critical” for Uber, which “could also face a substantially higher tax bill, because it may then have to pay employers’ national insurance contributions and value added tax”.

A bigger worry comes to a head next week when the company goes to court in London to defend its right to operate in the capital, its most important European market. Uber was deemed unfit to run a taxi service and stripped of its licence by the city’s regulator, Transport for London.

Globally, the company, one of Silicon Valley’s biggest success stories, has had a torrid year. It lost its licence to operate in several major markets, was forced to pull out of China - and co-founder and chief executive Travis Kalanick was driven out after allegations of sexual harassment.