After facing licensing woes in the UK, American ride hailing service provider, Uber has reportedly been banned by a German court from providing its ride-hailing services across Germany.

The German court argued that the American firm lacks the licenses that allow it to facilitate transport services to passengers through rental vehicles.

The court’s verdict is the latest setback for the company after it lost its license to ferry paying passengers across London about a month ago.

London regulators had claimed that the rise-hailing service had compromised on passenger safety, a move which ultimately culminated in the company’s exit from London.

Across Germany, where the company is active in approximately seven cities, including Berlin, Frankfurt, and Munich, Uber exclusively collaborates with passenger car rental firms and their drivers, who are already licensed.

The court’s decision would come into effect immediately, however, it can still be appealed. An Uber spokesperson reportedly stated that the company will assess the court’s orders and formulate its next steps to keep its services in Germany going.

According to sources knowledgeable of the matter, the company would now change the way it conducts its business across Germany, the largest economy across Europe. Uber is also considering whether to take a legal action to challenge the court ruling.

Taxi Deutschland, the plaintiff, stated that it would look for immediate provisional enforcement on the company. Uber would then have to face fines that start from €250 per ride and can go up to €250,000 per ride in case of repeated offences.

In 2015, the court had forbidden the company from matching up with drivers that use their own vehicles with passengers. The company’s present service, which allows customers to hail rides that are being offered through rented vehicles, is illegal as well since it violates competition rules.

Meanwhile, Uber advertised its services to potential customers in a manner that led them to perceive the company as the facilitator of the transport services. Moreover, the company has also been accused of choosing specific drivers and determining fare prices.

The ride-hailing company has had a number of run-ins with drivers, courts and regulators throughout the world and has been banned from markets such as Hungary and Copenhagen.
 

Source credit: https://www.reuters.com/article/us-uber-court/german-court-bans-uber-services-via-rental-cars-in-germany-idUSKBN1YN171