Germany bans Uber from providing ride-hailing services in the country
Category: #headlines  By Mateen Dalal  Date: 2019-12-21
  • share
  • Twitter
  • Facebook
  • LinkedIn

Germany bans Uber from providing ride-hailing services in the country

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

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal    

Mateen Dalal

Mateen has completed his Bachelor’s degree in electronics and telecommunication engineering, post which he lent his proficiency to the industry, working as a quality and test engineer. Drawn intricately toward the field of content creation however, Mateen soon switc...

Read More

More News By Mateen Dalal

Airtel and Tata Group team-up to compete Jio’s 5G technology
Airtel and Tata Group team-up to compete Jio’s 5G technology
By Mateen Dalal

Bharti Airtel and Tata Group have entered into a strategic partnership to challenge Jio's ‘made-in-India’ 5G technology. The two companies are focusing on deploying 5G radio and core solutions, based on Open-RAN, which Airtel has...

NSW offers $480Mn EV package, waives stamp duty on EVs
NSW offers $480Mn EV package, waives stamp duty on EVs
By Mateen Dalal

In a bid to achieve net-zero emissions by 2050, the Government of New South Wales has committed to invest USD 480 million in a recent budget to encourage the adoption of electric vehicles, including limited USD 3,000 rebates along with removal of sta...

PwC announces ‘New Equation’ strategy to create 100,000 jobs
PwC announces ‘New Equation’ strategy to create 100,000 jobs
By Mateen Dalal

U.K based-PricewaterhouseCoopers or PwC has announced a new global strategy-The New Equation, which will see the company spend nearly USD 12 billion over a span of five years to create nearly 100,000 job roles across 155 of its territory firms in reg...