Market Watch

From Bad To Worse For Uber

11 Dec , 2014  

Market Watch ThursAbout three weeks ago, an acquaintance at a networking event recommended a taxi company called Uber to me. I was dubious at first, but soon realised that this is an innovative company taking advantage of technology and bringing a competitive edge to an otherwise stagnant taxi industry. The company does not own cars or employ drivers, but connects customers and vehicles through its app.

However, it seems that the company is currently in the news for all of the wrong reasons and it is getting worse by the day.

A judge has ordered taxi booking service Uber to stop operating in Spain, after a series of protests by taxi associations.
In his ruling on the temporary ban, the judge said Uber drivers didn't have official authorisation and accused the service of "unfair competition".

A spokesman for the company said, "Uber will continue to comply with Spanish law and is currently assessing its legal options under this sudden and unusual proceeding".

The Spanish order comes just a day after Uber was blacklisted in the Indian capital Delhi after a driver allegedly raped a female passenger.

On the same day, judges in The Netherlands banned its UberPop ride-sharing service, which was launched as a pilot project in Amsterdam between July and September and subsequently extended to The Hague and Rotterdam. In this case, judges citied the fact that drivers transporting people for money without a licence were operating outside of the law.

Uber has expanded rapidly since its 2009 launch and now operates in more than 250 cities across 50 countries. Earlier this month Uber was valued at $40bn (£25.5bn), following its latest round of fund raising.

Uber's week of woes is continuing at pace with authorities in San Francisco and Los Angeles taking legal action against the internet-based taxi firm, and other US cities following suit.

Who is Uber?



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