UBER has vowed to appeal after Transport for London (TfL) said it will not be issued with a new licence and was “not fit and proper” to operate in the capital.

TfL said it took the decision on the grounds of “public safety and security implications”.

Drivers’ union GMB hailed the move as a victory. It secured an employment tribunal ruling last year that Uber drivers are not self-employed and are entitled to basic workers’ rights including holiday pay, and a guaranteed minimum wage.

On Monday, GMB and global consumer group SumOfUs handed in a petition signed by 100,000 people calling on TfL to force Uber to respect workers’ rights. Uber, which is used by 3.5 million people and has 40,000 drivers in London, hit back, after yesterday’s decision saying it would appeal and claiming the move “would show the world that, far from being open, London is closed to innovative companies”.

Mayor of London Sadiq Khan said in a statement: “I want London to be at the forefront of innovation and new technology and to be a natural home for exciting new companies.

“However, 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.

Uber’s general manager in London, Tom Elvidge, said: “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.”

Last month, Uber was accused by police of allowing a driver who sexually assaulted a passenger to strike again by not reporting the attack, along with other serious crimes. Uber said at the time that the comments did not reflect the “good working relationship we have with the police”.