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Uber service 'banned' in Germany by Frankfurt court | |
(about 22 hours later) | |
Car pick-up service Uber has had one of its services banned across Germany. | |
A court in Frankfurt ruled that the firm lacked the necessary legal permits to operate under German law. | A court in Frankfurt ruled that the firm lacked the necessary legal permits to operate under German law. |
It has emerged that the firm was told last week that its "low-cost" UberPop service could no longer take passengers and faced a fine if it continued. | It has emerged that the firm was told last week that its "low-cost" UberPop service could no longer take passengers and faced a fine if it continued. |
But an Uber spokesman said it had decided not to suspend the service, adding that the ban was not enforceable while an appeal process was ongoing. | But an Uber spokesman said it had decided not to suspend the service, adding that the ban was not enforceable while an appeal process was ongoing. |
"Germany is one of the fastest growing markets for Uber in Europe," he said. | "Germany is one of the fastest growing markets for Uber in Europe," he said. |
"We will continue to operate in Germany and will appeal the recent lawsuit filed by Taxi Deutschland in Frankfurt. | "We will continue to operate in Germany and will appeal the recent lawsuit filed by Taxi Deutschland in Frankfurt. |
"You cannot put the brakes on progress. Uber will continue its operations and will offer UberPop ridesharing services via its app throughout Germany." | "You cannot put the brakes on progress. Uber will continue its operations and will offer UberPop ridesharing services via its app throughout Germany." |
A check of the firm's software confirms that drivers continue to offer UberPop pick-ups in Munich, Berlin, Hamburg, Frankfurt and Dusseldorf. | A check of the firm's software confirms that drivers continue to offer UberPop pick-ups in Munich, Berlin, Hamburg, Frankfurt and Dusseldorf. |
UberPop was launched earlier this year and involves drivers - who are not directly employed by the company - over the age of 21 using their own cars to transport passengers. | UberPop was launched earlier this year and involves drivers - who are not directly employed by the company - over the age of 21 using their own cars to transport passengers. |
Taxi Deutschland suggested that Uber could face up to a 250,000 euro ($327,840; £198,342) fine per trip if the American firm loses the case. | Taxi Deutschland suggested that Uber could face up to a 250,000 euro ($327,840; £198,342) fine per trip if the American firm loses the case. |
The body described its rival as a "form of locust share-economy" indulging in "anarchy capitalism" that could leave passengers exposed in the case of an accident. | The body described its rival as a "form of locust share-economy" indulging in "anarchy capitalism" that could leave passengers exposed in the case of an accident. |
"In Germany there's insurance that applies to private drivers," explained spokeswoman Anja Floetenmeyer. | "In Germany there's insurance that applies to private drivers," explained spokeswoman Anja Floetenmeyer. |
"But if your insurer learns that you are driving for an app and you want to make money on that, they say this is a multiple risk and refuse to [pay] insurance on that. | "But if your insurer learns that you are driving for an app and you want to make money on that, they say this is a multiple risk and refuse to [pay] insurance on that. |
"Uber doesn't care because security costs money. We don't believe it has the interests of [German] drivers and citizens at heart." | "Uber doesn't care because security costs money. We don't believe it has the interests of [German] drivers and citizens at heart." |
But Uber's spokesman in Germany, Fabien Nestmann, has previously blogged that safety is one of his firm's key concerns, adding that "all the rides - and thus all travellers - are insured by Uber". | But Uber's spokesman in Germany, Fabien Nestmann, has previously blogged that safety is one of his firm's key concerns, adding that "all the rides - and thus all travellers - are insured by Uber". |
European protests | European protests |
The summary judgment follows a decision by London's transport authorities not to pursue a case against Uber in June this year. | The summary judgment follows a decision by London's transport authorities not to pursue a case against Uber in June this year. |
The San Francisco-based firm allows passengers to summon cars using an app on their smartphones and calculates the fare en route. It is often significantly cheaper than rival taxi companies. | The San Francisco-based firm allows passengers to summon cars using an app on their smartphones and calculates the fare en route. It is often significantly cheaper than rival taxi companies. |
But taxi drivers argue that Uber has fewer regulatory burdens placed upon it than they do, and poses unfair competition. | But taxi drivers argue that Uber has fewer regulatory burdens placed upon it than they do, and poses unfair competition. |
The company - which is backed by Google and the bank Goldman Sachs, among others - has been the subject of protests by taxi drivers in many European cities, including Berlin, Paris and London. | The company - which is backed by Google and the bank Goldman Sachs, among others - has been the subject of protests by taxi drivers in many European cities, including Berlin, Paris and London. |
Only last week, Uber said it was planning to rapidly expand its German operation. | Only last week, Uber said it was planning to rapidly expand its German operation. |