Uber to pull out of Denmark, blaming new taxi law
Uber to pull out of Denmark, blaming new taxi law
Posted March 28, 2017 by Natasha Lomas
Uber says it will pull out of Denmark next month, on
April 18, blaming a new taxi law that includes requirements such as mandatory
fare meters and seat sensors.
While traditional cabs are likely already kitted out with
the required tech, Uber’s service relies on drivers using their own vehicles as
taxis, and smartphones as meters, so it would be harder for the company to
comply.
Uber had previously vowed to stay and fight for deregulation
in Denmark, with an incoming liberal government suggesting in December that it
might seek to make changes to existing taxi laws. So it’s entirely possible
Uber is hoping that announcing the withdrawal now will apply some last-minute
pressure on regulators for a rethink.
An Uber spokesman told us that in order for the company
to operate in the market “the proposed regulations need to change”, adding that
Uber will continue to “work with the government” in the hopes of effecting such
a change.
In a statement, Uber added: “Unfortunately, due to the
upcoming changes in regulations, we have been left with no choice but to close
the service. Our top priority is supporting the drivers who use Uber during
this difficult time. We will continue to work with the government in the hope
that they will update their proposed regulations and again enable Danes to
enjoy the benefits of modern technologies like Uber.”
Uber says it has more than 2,000 drivers in Denmark and
300,000 users of its ride-hailing app.
The spokesman said will be providing “dedicated resources” to assist
drivers throughout the shutdown process. Uber launched in the country in 2014.
The company also employs some 40 engineers in the
country, based in Aarhus, who it says work on its tech globally. It says it has
no plans to close this development operation — indeed, it hints at future
expansions, which may also be a not-so-subtle attempt to play politics with
local lawmakers.
Uber has already faced challenges in Denmark, with its
European business indicted in a Danish court last December on charges of
assisting two drivers of breaking local taxi laws.
Regulators and judges in other European markets have also
caused Uber to reverse course. Though the company also saw off a 2015 High
Court challenge in the UK, brought by the local taxi industry, which had tried
to argue that Uber should be regulated as a taxi business as its use of
smartphones constituted use of a taximeter. The judge disagreed.
A Europe-wide judgement on the question of how Uber’s
business should be regulated is expected later this year, after the region’s
top court was asked to provide a ruling on whether it’s a taxi company or a
tech platform.
Comments
Post a Comment