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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 |
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| PARIS — Just days after Uber survived a lawsuit here brought by taxi operators, the French government said on Monday that the American company’s low-cost ride-sharing service would be banned in the new year. | PARIS — Just days after Uber survived a lawsuit here brought by taxi operators, 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 threatening to create traffic chaos on Monday with a go-slow action 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 threatening to create traffic chaos on Monday with a go-slow action 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. |
| Parisian taxi associations had brought the case against Uber, accusing it of unfair competition. But Pierre-Henry Brandet, the Interior Ministry spokesman, told the news channel BFM TV that the Paris court’s decision on Friday in the case, which allows the company to continue operating its UberPop service in the French capital, did not change the fundamental equation. | Parisian taxi associations had brought the case against Uber, accusing it of unfair competition. But Pierre-Henry Brandet, the Interior Ministry spokesman, told the news channel BFM TV that the Paris court’s decision on Friday in the case, which allows 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. |
| 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. | 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 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.” | 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, in a lawsuit in which taxi operators had accused Uber of unfair competition, 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. | So it goes for one of the world’s fastest growing and most disruptive technology companies. The Paris court’s decision on Friday, in a lawsuit in which taxi operators had accused Uber of unfair competition, 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. |
| Roméo Pestana, president of the French Taxi Association, said government officials had reached out to unions over the weekend to reassure them of their support, moves that helped reduce the turnout for the traffic slowdown on Monday. But Mr. Pestana said it was not clear that the new transportation regulation cited by Mr. Brandet, known as the Thévenoud Law, could be used successfully to suppress Uber, since it left open some room for the service to claim that its rights of entrepreneurship were being harmed. | Roméo Pestana, president of the French Taxi Association, said government officials had reached out to unions over the weekend to reassure them of their support, moves that helped reduce the turnout for the traffic slowdown on Monday. But Mr. Pestana said it was not clear that the new transportation regulation cited by Mr. Brandet, known as the Thévenoud Law, could be used successfully to suppress Uber, since it left open some room for the service to claim that its rights of entrepreneurship were being harmed. |
| Nor, with just two weeks left in the year, have all the elements of the law been finalized. That fact figured in the legal decision on Friday, in which the Paris court, though partly siding with Uber’s opponents, said it could not apply legal remedies because crucial elements of the law have not yet been finalized. | Nor, with just two weeks left in the year, have all the elements of the law been finalized. That fact figured in the legal decision on Friday, in which the Paris court, though partly siding with Uber’s opponents, said it could not apply legal remedies because crucial elements of the law have not yet been finalized. |
| The ministry did not immediately respond to a request for comment. | The ministry did not immediately respond to a request for comment. |
| The Thévenoud Law would require all drivers who chauffeur paying passengers to have a license, obtainable after 250 hours of training, and to have appropriate insurance -- just as with normal taxis. UberPop does not currently meet the licensing requirement, which has led to officials and opponents accusing it of operating illegally. | |
| For its part, Uber has sought to play down the safety concerns. On its French driver recruiting website, it assures applicants that they do not need any insurance beyond what is standard for their vehicles. All UberPop trips are covered by commercial liability insurance with a $5 million per accident maximum, it says, that covers any damage or injuries caused by the driver. | |
| Mr. Brandet on Monday did not address the apparent split inside the French government over the challenge posed by Uber. Emmanuel Macron, the economy minister, said last week that Uber “should not be banned in Paris,” and that “you have to be disruptive.” | |
| Through a smartphone app, UberPop makes it possible for any approved driver with a car and a proprietary Uber device to pick up passengers. The company describes the service as “ride-sharing,” though its opponents argue that it is operating what is a de facto for-profit taxi service. Introduced to Paris in February, it has been a big hit, with fares that can run more than a third below standard rates, partly because it escapes taxes and social security charges. | Through a smartphone app, UberPop makes it possible for any approved driver with a car and a proprietary Uber device to pick up passengers. The company describes the service as “ride-sharing,” though its opponents argue that it is operating what is a de facto for-profit taxi service. Introduced to Paris in February, it has been a big hit, with fares that can run more than a third below standard rates, partly because it escapes taxes and social security charges. |
| 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.” |