Uber Technologies Inc (NYSE:UBER) saw its shares fall on Tuesday after the ride-hailing app firm received only a two-month London operating licence, failing to secure the maximum five-year term it wanted.

In late morning trade in New York, Uber shares were 4.1% lower at $31.66.

In a statement on its website, Transport for London (TfL) said its decision to issue Uber London Limited (ULL) with a two-month private hire operator licence comes ahead of consideration of any potential further licensing application.

TfL said the new two-month licence will have the same conditions that ULL has been subject to over the last 15 months, along with new conditions to ensure passenger safety.

READ: Uber appoints new UK chief as renewal of London licence looms

The London transport licenser noted that its original decision not to license ULL, which Uber appealed has led to the app-based firm improving its culture and governance.

TfL said it is requesting additional material from ULL and this additional information will help inform any future licensing decision.

A TfL spokesperson commented: ‘Uber London Limited has been granted a two-month private hire operator licence to allow for scrutiny of additional information that we are requesting ahead of consideration of any potential further licensing application.’

Reuters reported that Uber said it will work closely with TfL and provide any additional information.

The Silicon Valley company’s licence renewal request was denied in 2017 due to failings TfL said it found in its approach to reporting serious criminal offences and driver background checks, prompting legal action.

A judge in 2018 then granted Uber a probationary 15-month licence, which expires on September 25, after the firm had made several changes to its business model in London, its most important European market.

Drivers of London’s traditional black taxis have lobbied hard against a licence renewal. Uber says it has roughly 45,000 drivers in the city.

Contact the author at jon.hopkins@proactiveinvestors.com