TechCrunch : Uber loses its license to operate in London

In a huge blow to Uber in the UK London’s transport regulator has rejected its application to renew its license to operate in the city.
In a statement today TfL said it has concluded that Uber is “not fit and proper to hold a private hire operator licence”.
“TfL’s regulation of London’s taxi and private hire trades is designed to ensure passenger safety. Private hire operators must meet rigorous regulations, and demonstrate to TfL that they do so, in order to operate. TfL must also be satisfied that an operator is fit and proper to hold a licence,” it said.
The regulator added that Uber’s “approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications” — including for the following issues:
  • Its approach to reporting serious criminal offences.
  • Its approach to how medical certificates are obtained.
  • Its approach to how Enhanced Disclosure and Barring Service (DBS) checks are obtained.
  • Its approach to explaining the use of Greyball in London — software that could be used to block regulatory bodies from gaining full access to the app and prevent officials from undertaking regulatory or law enforcement duties
TfL notes that the Private Hire Vehicles (London) Act 1998 includes provision to appeal a licensing decision within 21 days of it being issued, and confirmed that Uber can continue to operate until any appeal processes have been exhausted.
Uber is expected to appeal. A statement by the company is also expected shortly — we’ll add it when we have it.
Update: In a statement, Tom Elvidge, general manager of Uber in London, said:
3.5 million Londoners who use our app, and more than 40,000 licensed drivers who rely on Uber to make a living, will be astounded by this decision.
By wanting to ban our app from the capital Transport for London and the Mayor have caved in to a small number of people who want to restrict consumer choice. If this decision stands, it will put more than 40,000 licensed drivers out of work and deprive Londoners of a convenient and affordable form of transport.
To defend the livelihoods of all those drivers, and the consumer choice of millions of Londoners who use our app, we intend to immediately challenge this in the courts.
Drivers who use Uber are licensed by Transport for London and have been through the same enhanced DBS background checks as black cab drivers. Our pioneering technology has gone further to enhance safety with every trip tracked and recorded by GPS. We have always followed TfL rules on reporting serious incidents and have a dedicated team who work closely with the Metropolitan Police. As we have already told TfL, an independent review has found that ‘greyball’ has never been used or considered in the UK for the purposes cited by TfL.
Uber operates in more than 600 cities around the world, including more than 40 towns and cities here in the UK. This ban would show the world that, far from being open, London is closed to innovative companies who bring choice to consumers.
TfL said it will not be commenting further on the decision pending any appeal.
In a statement, London’s mayor Sadiq Khan backed the regulator’s decision, writing:
I want London to be at the forefront of innovation and new technology and to be a natural home for exciting new companies that help Londoners by providing a better and more affordable service.
However, all companies in London must play by the rules and adhere to the high standards we expect – particularly when it comes to the safety of customers. Providing an innovative service must not be at the expense of customer safety and security.
I fully support TfL’s decision – it would be wrong if TfL continued to license Uber if there is any way that this could pose a threat to Londoners’ safety and security.
Any operator of private hire services in London needs to play by the rules.
Uber’s current license to operate in London is due to expire on September 30. The company claims to have some 3.5 million users in London and around 40,000 drivers operating on its platform.
Its prior license expired in May but was extended by TfL for four months as the regulator continued to deliberate over whether it should grant Uber another full five year term in the face of rising criticism against its business — including on issues such as workers’ rights and public safety.
Earlier this month a cross-party group of MPs wrote to TfL urging it to strip the company of its license to operate in the UK capital, arguing the company has not shown itself to be a “fit and proper operator”.

This followed accusations made this summer by London’s Met Police that Uber has been failing to report sex attacks by drivers on its platform.
While last year the GMB Union helped bring two test cases to a UK employment tribunal accusing Uber of acting unlawfully by not providing drivers with basic workers’ rights like holiday pay and the minimum wage.
In October the tribunal delivered its verdict, rejecting Uber’s argument that the drivers in question were self-employed contractors — instead judging them to be workers, setting a legal precedent for other Uber drivers to challenge the company. (Although Uber has appealed the ruling.)
The union handed a petition to TfL this month urging it to insist on limits to Uber driver hours as a condition of renewing Uber’s license.
It welcomed the regulator’s decision today, describing it as a “historic victory”.
“It’s about time the company faced up to the huge consequences of GMB’s landmark employment tribunal victory — and changed its ways,” said Maria Ludkin, GMB legal director, in a statement. “No company can be behave like it’s above the law, and that includes Uber. No doubt other major cities will be looking at this decision and considering Uber’s future on their own streets.”
The regulator has also faced pressure from London’s black cab drivers over perceived inequality in the regulatory regimes of private hire vehicles and traditional taxis.
London’s Licensed Taxi Drivers Association (LTDA) pressed TfL to reject a full renewal of Uber’s license — arguing that its model is unlawful and risks public safety, while also pointing to rising numbers of private hire vehicles (PHV) in London as contributing to the city’s congestion and pollution problem.
In comments supporting TfL’s decision to strip Uber of its license, rival ride-hailing firm mytaxi — which in the UK works exclusively with licensed black cabs in London and has a driver network of over 17,500 — urged Uber passengers “back to black cabs” — and said it would be undercutting UberX prices until the end of the month with a minimum 30% discount off the meter fare.
“Customers deserve a seamless, technology-enabled fleet of professional taxis with drivers who are proud to offer a superior service and have devoted the equivalent of a degree to their trade. That’s what mytaxi is proud to offer in London,” said Andy Batty, UK general manager at mytaxi in a statement.
Earlier this week TfL also announced a new pricing system for PHV licenses, inflating fees for obtaining a license. TfL said the price rises were necessary to cope with dramatic increases in the numbers of PHVs on London’s roads, noting it had not reviewed prices for PHV licensing since 2013.
The new regime brings in many more pricing tiers, depending on the size of the fleet being operated. The most expensive tier — for operators (such as Uber) that have more than 10,001 vehicles — has risen from around £3,000 under the prior licensing regime to £2.9M.
Last year, Uber steered off what could have been a major impediment to its business in London when TfL dropped a series of proposed changes to PHV rules — including imposing a five-minute minimum wait period between ordering and obtaining a ride.
Although the regulator did push on with other new measures, such as a formal English language requirement for drivers. Uber went on to challenge that in court — a challenge that was rejected in March (though Uber said it intended to appeal).
Zooming out to the European level, Uber is also awaiting what will be a highly significant ruling by Europe’s top court on the classification of its business — to provide clarity to regulators on whether it’s a transportation company or just an enabling tech platform as Uber tries to claim.
Earlier this year an influential advisor to the court deemed Uber’s activity is indeed to provide transportation services, rather than merely being an intermediary platform. A final ruling by the court is expected three to six months after the AG’s opinion — so likely by November.
While, in the U.S. Uber’s use of proprietary software to try to evade regulators has also drawn the attention of US regulators — and is reportedly being investigated by the Department of Justice.
It’s also under investigation by the FBI for use of another software program designed to target rival ride-hailing startup, Lyft.
While its business has also been rocked by a series of additional scandals in recent times — from accusations of an internal culture of sexism and sexual harassment, to accusations of IP theft from rival Alphabet, to an FCC investigation into privacy and security failures that resulted in Uber agreeing to two decades of external audits.

>>> US Early premarket gappers

Early premarket gappers


Gapping up:

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Gapping down:

  • VSAR -84.3%, FALC -20%, UPL -12.1%, FINL -7.8%, PSDO -5.4%, X -2.8%, VERI -1.7%, ICPT -1.5%, RUN -1.1%, TIF -1.1%

WWD : Bottega Veneta’s CEO Maps Out Strategies

Bottega Veneta’s CEO Maps Out Strategies
In his first interview since joining the Italian luxury brand last year, Claus-Dietrich Lahrs has been setting the foundations for future growth expressing his confidence that Bottega Veneta "is up for another nice ride."

MILAN — “Romancing the customer” has become one of Bottega Veneta’s priorities.

Since joining the luxury company on Oct. 1, 2016, chief executive officer Claus-Dietrich Lahrs has been busy traveling to the group’s main markets, building a new team and setting the foundations for future growth, as he views the year 2017 as one of transition.

“We all feel very confident the brand is up for another nice ride,” said Lahrs during an interview at the brand’s sprawling headquarters here. After a slowdown last year, with a drop of 9.4 percent in the fourth quarter, Bottega Veneta, which is controlled by Kering, showed encouraging signs in the first half of 2017, posting a 3.4 percent increase in revenues to 590 million euros.

Referring to the decrease, the German-born Lahrs, who speaks flawless English and French, emphasized the label’s strength in his measured yet assertive tones.

“What made the brand so important and distinctive, its strong commitment to Intrecciato [woven leather] and its unique development in Asia, helped us grow the brand beyond the billion [euro] mark,” he said in his first interview since arriving at the company.

Hailing from Cartier, Louis Vuitton and Christian Dior Couture before Hugo Boss, he said luxury industry players “have moments when certain combinations are recipes for success.” At Bottega Veneta, now is the time “to move into the next combination without saying bye-bye to what made the brand so successful. Sometimes it’s simply about communicating differently, with emotions, in a digital way, because what we own and share as DNA at Bottega Veneta is just right, there’s nothing to be changed. We want to make sure it’s understood. We’ve been very discreet on purpose, but with younger customers, it’s obvious we need to become more outspoken about what we are.

“This does not mean we won’t do Intrecciato anymore, there are a lot of developments, from the color, shape and crafts point of view, depending on the occasion, but we know loyal customers want to discover something which is different, yet carries the signature of the brand. This is what we believe is key now and 2017 is helping us to be perfectly positioned for the years to come. Sometimes you see a brand that needs to radically change because it’s not in tune with the market or the world. This is not our case.”

Since his arrival, Lahrs has put together a new “competent” team, he said, that will focus on a range of areas, from marketing and communication to content production. The team includes Gerrit Ruetzel, ceo, Americas; Marc Le Mat, ceo, Europe, Middle East and Africa, who joined in July; Jon Strassburg, chief merchandising officer, who joined earlier in the month from Burberry; Lisa Pomerantz, chief marketing officer, who has a longstanding and close relationship with creative director Tomas Maier; Yannick Angelloz-Nicoud, communications director; Kristen Campbell, senior vice president, global marketing; Sebastian Saldarriaga, senior director, social media strategy; Beth Haubenstock, senior director, global advertising; Jonathan Braaten, vice president, creative content; Meenal Mistry, senior director of global editorial content and copy, and Alice Acciari, worldwide e-commerce director.

Content is key, observed Lahrs, realizing that “whatever we want to do, we need to have appealing, strong, convincing and well-conceived assets. We are on our way, if you go on Facebook, Instagram, if you check social media now, you see that something has happened.” The executive believes the company worked fast in a focused way. The goal was to “make sure the brand is understood from a more emotional point of view. I’d like to call it romancing…to be understood by this group of customers in an easier and more appealing way.”

Communication has to be in sync with the times, argued the executive, noting that when the brand was on its upward trajectory, “it was a moment when discreet luxury was very much in demand and customers were tired of bling, ostentatious luxury. [Discreet luxury] continues to be right and our core customer continues to appreciate this discreet branding, rather sophisticated communication. But there are ways to make it more understandable, easier to be approached from a consumer’s point of view. That’s what we are working on — to be more outspoken, communicate our values and what we feel is important.” This communication can target those customers who were not on the company’s radar in the past.

The brand is also further developing its main markets and will open its biggest store in the world in Manhattan — its third Maison — in February, and for one time only, hold its fall 2018 runway show in New York. “We are not saying bye-bye to Milan, but we will inaugurate the store and hold the show the next day, but we can’t say where yet,” Lahrs said.

Defining it a “stunning undertaking,” he said the new store combines three landmark stone houses into one, with 15,000 square feet of selling space over five floors. Located on Madison Avenue, it will be “a statement in itself,” he added. The company has been working on the project for four years. Upon the opening, it will close a temporary store on 59th Street that was established two years ago.

Bottega Veneta opened its first store in New York’s Madison Avenue in 1972, listing customers such as Andy Warhol and Jackie Kennedy. “Bottega Veneta enjoyed very, very strong positioning in North America in the Seventies. It’s good to go back and to make a very strong statement. It is one of the few cities speaking to the rest of the world. For this reason, we believe it’s an important investment and statement in terms of size and visibility,” the ceo said.

In the first half of the year, North America represented 11 percent of sales. Lahrs emphasized the potential of the market, which can be “much more important. In a controlled but dedicated way, we continue to increase our footprint in the U.S.,” he said. The company is well-positioned in the region, he added, noting continued investments in relocating and revamping existing boutiques, such as the Maison in Beverly Hills last year, which was expanded to two floors in a more visible location. While the concept is modeled after the Milan Maison on Via Montenapoleone, Bottega Veneta is aiming to differentiate each unit depending on the city.

As of the end of June, there were 31 stores in the U.S. out of a total of 265 globally.

In line with its new communications strategy, Bottega Veneta will present its craftsmanship and know-how at Chiswick House in West London, during an event called “The Hand of the Artisan”on Nov. 9 and 10. Built in a Palladian style, Chiswick House is a reference to the company’s roots in the Veneto region, which is rich in palazzi designed by Andrea Palladio, the 16th-century architect. (Bottega Veneta even has a family of fragrances called Parco Palladiano.)

“We will bring Montebello [Vicentino, where the company atelier is located in the 18th-century Villa Schroeder-Da Porto] and its spirit to Chiswick House. It’s a mix between an experience and an exhibition for our customers and those that would love to understand more about the brand and the craftsmanship that is behind our products,” said Lahrs, adding that he is looking for additional locations to replicate the experience.

He also expects “superior growth in Asia,” due to the size and demographics of the region. “I found it interesting and very reassuring that the brand has a very important position in the mind of customers either shopping at home in South East Asia, or traveling to Australia, Europe or the U.S.”

In the first half, the Asia-Pacific represented 42 percent of sales, followed by Western Europe (27 percent) and Japan (15 percent).

Another store will open in Tokyo at the end of 2018. “We are very excited — Japan is the single most important market, and we want to make sure it remains so,” Lahrs said. There were 58 stores in Japan at the end of June. Bottega Veneta controls 80 percent of its business in Japan through its own stores in key cities, with the remainder wholesale, and leverages on its experience in the “ceremony of selling luxury items.”

The brand’s online store, operated by the Yoox Net-a-porter Group, allows “strong global visibility” and Lahrs believes it will be “an additional source of business in years to come,” targeting China in 2018. He also said the wholesale business is “very strong” with partners such as Net-a-porter, Mytheresa.com and Matchesfashion.com.

“Our success story is built on three pillars: a very distinct product philosophy; a very strong commitment to craftsmanship [exemplified by] the very successful Intrecciato statement, and a tremendous success in the Asian hemisphere,” he said. “We are very proud of this and we want to build on it for the next development. We believe that in the years to come, we need to invest in product innovation, product newness and solidify our relations with our existing customers. But we recognize the shift into digital, to reach customers groups we have not been able to speak will change the perception and the recognition of the brand. About the way the brand is communicated in general. Yes, we know that younger age bracket is in touch with digital platforms, but I would not limit it to this.”

Upon Lahrs’ arrival at Bottega Veneta, Citigroup’s Thomas Chauvet cited “limited product diversification beyond the Intrecciato bag lines.” Asked to respond, the ceo said such diversification has been initiated.

He said the “entire Knot line was presented in a very visible way” for the first time on the runway in September 2016. “You can see we are moving into alternative [although] Intrecciato is a cornerstone, full or partial [on the bags]. We have a big campaign running on the entire Knot line. It’s a very important element that speaks for the brand, it’s an alternative to Intrecciato and speaks directly to consumers, those that are looking for something different but associated with Bottega Veneta.”

The Mini Montebello bag is also attracting a younger age group, or new customers that are approaching the brand from the price point of view, he added. This does not “water down” the brand, as Lahrs emphasized the need to remain in the luxury tier while “creating different avenues” of accessibility, whether fragrances or eyewear, before moving up to more expensive products.

In the first quarter, women’s footwear drove demand, and, while admitting there is a wider range of shoes available, the company is committed to ready-to-wear and it continues to invest in both its men’s and women’s divisions. Maier has opted for the co-ed format of shows and Lahrs was positive about the decision, in view of the designer’s “very consistent” vision for the two lines. Lahrs said he met Maier before accepting the ceo position and that he was struck by the designer’s deep commitment to the brand.

As part of its product diversification, the furniture and home collection is an integral part, Lahrs said. The new collection will be unveiled at Milan’s furniture and design trade show Salone del Mobile in April. (Bottega Veneta holds presentations of this division every other year.) “We will use every important event to speak about the brand, we have a strong competence in this field and we strongly believe this entire world [of design] can differentiate the brand in the mind of the consumer even more.” Bottega Veneta’s furniture will decorate the fifth floor of the Madison Avenue Maison, conceived as an apartment or welcome area for VIP customers.

The Verge: GOOGLE IS BECOMING APPLE FASTER THAN APPLE CAN BECOME GOOGLE


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Everything we’ve seen Google do since the hiring of Osterloh can be best understood through the prism of competing with Apple’s hardware. Why, for instance, does Google need to buy the HTC team that built its first-generation Pixels? The answer lies in the benefits of tight, Apple-like integration: Google can iterate Pixel designs much faster with an in-house crew, and it can do synergistic things with its hardware and software that it wouldn’t be able to when contracting the work out (even the former Google+ VP Vic Gundotra has stated a preference for this approach). This is an awful example, but having its own design team means Google can build its own Bixby button for launching the Google Assistant.

In a blog post announcing the HTC deal today, Rick Osterloh used words that could just as easily have come from Apple CEO Tim Cook’s mouth: “Our team’s goal is to offer the best Google experience—across hardware, software and services—to people around the world.” Hardware isn’t a hobby for Google anymore, it’s an equally important component to software like the Android OS and services like YouTube. This is just the way things have to be now: either you integrate all three components into one cohesive consumer proposition — as Apple has done and as Microsoft is doing with its Surface line of Windows PCs — or you get left behind by those who do.
Google’s $12.5 billion takeover of Motorola in 2012 is a commonly cited reference point for today’s HTC news. I find that history so distant and different as to be unhelpful to even consider. With today’s move, a very different Google is acquiring a different set of assets for a different purpose and a different price. Whereas Google wanted to appease Samsung and other Android OEM partners back in those days — leading to it feeling ambivalent about what to do with the Moto business — now Google is fully invested in being a hardware vendor itself. If Samsung doesn’t like that, it can try selling Tizen phones instead of Android.

The Motorola deal was complex, involved a vast and valuable patent portfolio, and required careful balancing to preserve at the least the appearance of Motorola operating independently. With its new staff coming in from HTC, Google is getting a big and highly experienced team — close to 2,000 people, according to HTC CFO Peter Shen — and it’s putting them directly under Osterloh’s command. There’s no confusion about where orders are coming from, or any external interests that need to be appeased. It’s just going to be Google, suddenly powered up with the years of experience that a new hardware vendor usually lacks, with the clear goal of ousting Apple’s iPhone from its position as the device most identified with the word “smartphone.”

The striking thing about Google’s transition to being a formidable competitor on the hardware front is how swift it has been and will be. The first time that Google put the “Made by Google” label on a phone, the Pixel turned out to have the best smartphone camera of its time — and it arguably still does. On day one, Google’s Pixel had already won one of the biggest battles against the iPhone: that of having a better camera. Yes, Google has had major stumbles in its efforts to supply enough phones to sate Pixel demand, but those are problems that can be overcome with time, experience, and a thoughtful scaling up.
Apple is also enjoying rapid growth with its services group, but in my estimation Google is closer to catching up to Apple’s hardware design and engineering than Apple is to recreating Google’s online empire. Maybe Apple’s investment in developing in-house CPUs, GPUs, and the proprietary Face ID system will pay off in granting it a technological edge in the future, but as of right now, those are potential advantages, whereas Google’s online lead is already in evidence.

At Google I/O this summer, Google proudly boasted it has more than a billion users of Google Maps, YouTube, Chrome, Gmail, Search, and Google Play. And more than two billion active Android devices. Granted, Google doesn’t quite have the quality of third-party apps that Apple has (who does?), but I still see a more logical and obvious progression for Google than I do for Apple.

If Google were to leave the battle to forever be between the iPhone and Android, between an integrated piece of modern tech and a mere operating system, Apple’s device would always win. Apple’s not-so-secret advantage is in having tight control over every aspect of the iPhone user experience. Google can’t be out there filing down the sharp edges of the USB-C port on its hardware partners’ devices. But it can design its own, premium-tier device that can go right up against the iPhone. The HTC deal today makes sure of that.

FT : VW, BMW and Fiat face big fines over CO2 targets

VW, BMW and Fiat face big fines over CO2 targets

Falling diesel sales and demand for SUVs make targets tougher to hit, say consultants

Some of the world’s biggest carmakers are heading for fines in excess of €1bn as they fail to hit legally mandated CO2 targets in 2021.

Volkswagen, BMW and Fiat Chrysler are among groups facing fines as falling diesel sales and rising consumer appetite for large sport utility vehicles make the targets tougher to meet, according to forecasts by PA Consulting.

In total, seven out of 11 carmakers are on course to miss the targets, the report states.

Only Volvo, Toyota, the Renault-Nissan Alliance and Jaguar Land Rover are on track to meet the requirements, says the consulting group, which advises many of the manufacturers in the car industry.

Under the targets, carmakers must reduce the average emissions of the cars they sell to below 95g of CO2 per km.

Carmakers that miss their targets face stiff penalties, with a fine of €95 for every gram of CO2 above the limit, multiplied by the number of cars they sell in 2020.

This would leave VW facing a €1.7bn fine and BMW facing a €700m penalty, the PA Consulting report predicts.

Each company has its own individual target, which takes into account the types of vehicles sold, meaning that a company with smaller average vehicles will face more stringent targets than a group focused mainly on large cars.

Under the system, carmakers also receive “super-credits” for every fully electric car they sell, allowing them to offset the impact of more polluting vehicles.

Diesel cars have typically been a key component for manufacturers to meet their targets because they emit about a fifth less CO2 than petrol equivalents.

But a political backlash against the fuel, which has seen it criticised by politicians and banned in several major cities from Stuttgart to Paris, has seen a fall in diesel sales accelerate this year.

Diesel’s market share in Europe has fallen from 52 per cent in October 2015 to 45 per cent in May 2017.

As a result of the shift, some of Europe’s biggest carmakers are less likely to hit their targets than a year ago, the report claims, because a higher percentage of their fleet will be powered by petrol.

“The combination of SUVs and rapid decline of diesel cars adds complexity and difficulty and will increase the challenge that companies face,” said Thomas Goettle, global head of automotive at PA Consulting.

Volkswagen, which owns the Audi and Porsche brands, and BMW have both been pushed back by falling diesel sales, says the report.

Frank Witter, chief finance officer at Volkswagen, has previously said the costs of complying with the CO2 targets are the biggest pressure on the group’s R&D budget, calling it the “overarching issue” for the company.

He added: “The other items, investing and developing new technologies, autonomous driving, connectivity, electrification, are certainly important, but the most critical one is CO2 compliance.”

BMW chief executive Harald Krueger has told the Financial Times that diesel was required by the company to hit its 2021 targets.

“It’s getting more challenging because the reduction in diesel needs to be compensated,” he said at the Frankfurt Motor Show.

“But we need diesel to fulfil the targets. That’s very clear.”

>>> SIX rumoured to be examining spin-off, sale options for payment services div

SIX rumoured to be examining spin-off, sale options for payment services division - report (translated)
22 SEP 2017
SIX, the Swiss financial services company and operator of the Swiss SIX stock exchange, is rumoured to be examining options for its payment services division, Neue Zuercher Zeitung reported.
The Swiss daily said a newswire report yesterday cited financial sources that said JP Morgan is aiding SIX in examining a spin-off or sale of the business which could reap up to CHF 2bn (USD 2.06bn).
SIX declined to comment, the report stated.
The payment services division contributes around half of SIX's turnover and is the largest of the four divisions, the report noted.
Swiss daily Aargauer Zeitung also reported the situation. Without naming its source the report said JP Morgan assessing the business and is in London looking for possible co-operation or joint venture partners. An insider said the division would not be sold to a non-Swiss company.
A sale or float is not the board's first choice, and SIX could even acquire a competitor, the report added.