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France Says It Will Ban Uber’s Low-Cost Service in New Year France Says It Will Ban Uber’s Low-Cost Service in New Year
(35 minutes later)
PARIS — Talk about a short respite: Just days after Uber survived a lawsuit here brought by taxi operators accusing it of unfair competition, the French government said on Monday that the American company’s low-cost ride-sharing service would be banned in the new year.PARIS — Talk about a short respite: Just days after Uber survived a lawsuit here brought by taxi operators accusing it of unfair competition, the French government said on Monday that the American company’s low-cost ride-sharing service would be banned in the new year.
With Paris taxis creating traffic chaos on Monday morning with a go-slow strike to protest the ride-booking company, an Interior Ministry spokesman said that Uber’s low-cost service, UberPop, would be prohibited in France as of Jan. 1.With Paris taxis creating traffic chaos on Monday morning with a go-slow strike to protest the ride-booking company, an Interior Ministry spokesman said that Uber’s low-cost service, UberPop, would be prohibited in France as of Jan. 1.
Pierre-Henry Brandet, the Interior Ministry spokesman, told BFM television that the court’s decision on Friday allowing the company to continue operating its UberPop service in the French capital did not change the fundamental equation. Pierre-Henry Brandet, the Interior Ministry spokesman, told the news channel BFM TV that a Paris court’s decision on Friday to allow the company to continue operating its UberPop service in the French capital did not change the fundamental equation.
He noted that in October, another French court “had well demonstrated the illegal nature of the service.” In that case, Uber was fined 100,000 euros, or about $124,000, for deceptive marketing, but it has continued to operate while it appeals the ruling.He noted that in October, another French court “had well demonstrated the illegal nature of the service.” In that case, Uber was fined 100,000 euros, or about $124,000, for deceptive marketing, but it has continued to operate while it appeals the ruling.
The October decision “is exactly in line” with the government’s thinking, Mr. Brandet said, which calls for “better regulating the profession to avoid unfair competition.”The October decision “is exactly in line” with the government’s thinking, Mr. Brandet said, which calls for “better regulating the profession to avoid unfair competition.”
Those who operate such services, he said, could face two years in prison and fines of up to €300,000.Those who operate such services, he said, could face two years in prison and fines of up to €300,000.
“Uber is part of the solution, not part of the problem,” a spokeswoman for Uber said on Monday, adding that the company was in contact with policy makers in France. A spokeswoman for Uber said on Monday that “Uber is part of the solution, not part of the problem,” and added that the company was in contact with policy makers in France.
And, in a snub to the legal wrangling, Uber Paris posted a message on Twitter on Monday that said, “demand is very strong this morning, have a good week everyone.” And, in an apparent snub to the legal wrangling, Uber Paris posted a message on Twitter on Monday that said, “demand is very strong this morning, have a good week everyone.”
So it goes for one of the world’s fastest growing and most disruptive technology companies. The Paris court’s decision on Friday was a rare spot of good news in a week in which Uber was banned in the Netherlands, Spain and Thailand. In New Delhi, the Indian capital, the service was outlawed after a passenger accused an Uber driver of rape. So it goes for one of the world’s fastest growing and most disruptive technology companies. The Paris court’s decision on Friday was a rare spot of good news in a week in which Uber services were banned in the Netherlands, Spain and Thailand. In New Delhi, the Indian capital, the service was outlawed after a passenger accused an Uber driver of rape.
In Australia on Monday, as the police surrounded a cafe in Sydney where an armed individual was holding hostages, Uber began raising its rates. The move, which the company calls surge pricing, is governed by an algorithm and kicks in when demand for rides in an area spikes. Many people who were stranded in the area were asked to pay roughly four times the normal rate, according to complaints on social media.In Australia on Monday, as the police surrounded a cafe in Sydney where an armed individual was holding hostages, Uber began raising its rates. The move, which the company calls surge pricing, is governed by an algorithm and kicks in when demand for rides in an area spikes. Many people who were stranded in the area were asked to pay roughly four times the normal rate, according to complaints on social media.
While the opposition of entrenched taxi operators is driven mainly by fears for their livelihoods, Mr. Brandet pointed to what may be an Achilles’ heel for Uber.While the opposition of entrenched taxi operators is driven mainly by fears for their livelihoods, Mr. Brandet pointed to what may be an Achilles’ heel for Uber.
“Currently, those who use UberPop are not protected in case of an accident,” he added. “So not only is it illegal to offer the service, but for the consumer, it’s a real danger.”“Currently, those who use UberPop are not protected in case of an accident,” he added. “So not only is it illegal to offer the service, but for the consumer, it’s a real danger.”