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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 — The problems facing Uber, the popular ride-booking service, are going from bad to worse. | PARIS — The problems facing Uber, the popular ride-booking service, are going from bad to worse. |
| On Monday, the French government announced that the company’s lower-priced UberPop service would be banned on Jan. 1, the latest in a number of setbacks for Uber, which is facing bans in several cities worldwide. | On Monday, the French government announced that the company’s lower-priced UberPop service would be banned on Jan. 1, the latest in a number of setbacks for Uber, which is facing bans in several cities worldwide. |
| France’s announcement has again put the spotlight on Uber, an American company that has been attracting criticism across the globe that it does not comply with local licensing laws. It also follows steps by policy makers in Amsterdam, Delhi and elsewhere to ban its services. | France’s announcement has again put the spotlight on Uber, an American company that has been attracting criticism across the globe that it does not comply with local licensing laws. It also follows steps by policy makers in Amsterdam, Delhi and elsewhere to ban its services. |
| Uber says that it will challenge any legal ruling —including the potential ban across France — that would block it. | Uber says that it will challenge any legal ruling —including the potential ban across France — that would block it. |
| France’s move came only days after Uber dodged a potential ban of UberPop in Paris. Parisian taxi associations had filed a lawsuit against Uber, saying that the company should not be permitted to operate in the city where the one-time fee for a taxi license costs up to $300,000. | France’s move came only days after Uber dodged a potential ban of UberPop in Paris. Parisian taxi associations had filed a lawsuit against Uber, saying that the company should not be permitted to operate in the city where the one-time fee for a taxi license costs up to $300,000. |
| A local judge on Friday decided not to ban UberPop, prompting cabdrivers in the capital to stage a go-slow strike on Monday in protest of the company, which is valued at $40 billion, or almost the same as General Motors. | A local judge on Friday decided not to ban UberPop, prompting cabdrivers in the capital to stage a go-slow strike on Monday in protest of the company, which is valued at $40 billion, or almost the same as General Motors. |
| In the latest legal twist for Uber, Pierre-Henry Brandet, the French Interior Ministry spokesman, said Monday that new legislation called the Thévenoud Law — which requires all drivers who chauffeur paying passengers to have a license and appropriate insurance — would form the basis of the ban. UberPop does not meet the licensing requirement. | In the latest legal twist for Uber, Pierre-Henry Brandet, the French Interior Ministry spokesman, said Monday that new legislation called the Thévenoud Law — which requires all drivers who chauffeur paying passengers to have a license and appropriate insurance — would form the basis of the ban. UberPop does not meet the licensing requirement. |
| The low-cost service is used by roughly 40 percent, or 200,000 people, of Uber’s customers in France, and its fares can run more than a third below standard taxi rates. UberPop is similar to UberX in the United States, with neither service requiring drivers to have the licenses required of traditional taxi driver. Any approved driver with a car and a proprietary Uber device can pick up passengers. | The low-cost service is used by roughly 40 percent, or 200,000 people, of Uber’s customers in France, and its fares can run more than a third below standard taxi rates. UberPop is similar to UberX in the United States, with neither service requiring drivers to have the licenses required of traditional taxi driver. Any approved driver with a car and a proprietary Uber device can pick up passengers. |
| Critics contend that the service represents unfair competition for other taxi operators, and falls afoul of many licensing rules across Europe. That has led cities across Europe, including Brussels and Berlin, to outlaw the budget car service. | Critics contend that the service represents unfair competition for other taxi operators, and falls afoul of many licensing rules across Europe. That has led cities across Europe, including Brussels and Berlin, to outlaw the budget car service. |
| “Currently, those who use UberPop are not protected in case of an accident,” Mr. Brandet told the French news channel BFM TV, on Monday. “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,” Mr. Brandet told the French news channel BFM TV, on Monday. “So not only is it illegal to offer the service, but for the consumer, it’s a real danger.” |
| Customers who call up Uber through its smartphone application find various levels of rides, from budget commuter cars to premium black sedans. The company says that its low-cost service has proved popular throughout Europe, and that existing taxi associations are fighting to outlaw it because they do not want the competition in an industry whose rules have not changed for decades. | Customers who call up Uber through its smartphone application find various levels of rides, from budget commuter cars to premium black sedans. The company says that its low-cost service has proved popular throughout Europe, and that existing taxi associations are fighting to outlaw it because they do not want the competition in an industry whose rules have not changed for decades. |
| “Consumers are adopting UberPop very quickly,” said Pierre-Dimitri Gore-Coty, Uber’s regional general manager for Western Europe, adding that in cities like Brussels, the low-cost service is the only product that the company offers. “Traditional taxi drivers have always had a lot of power. Every time governments have tried to modernize the industry, it has proved problematic.” | “Consumers are adopting UberPop very quickly,” said Pierre-Dimitri Gore-Coty, Uber’s regional general manager for Western Europe, adding that in cities like Brussels, the low-cost service is the only product that the company offers. “Traditional taxi drivers have always had a lot of power. Every time governments have tried to modernize the industry, it has proved problematic.” |
| Uber’s other ride-booking services, including those involving traditional taxis and luxury sedans that require chauffeur licenses, charge more than UberPop. Rivals, including Lyft, which is available only in the United States, also offer low-cost ride-booking services, though global regulatory attention has so far focused on Uber. | Uber’s other ride-booking services, including those involving traditional taxis and luxury sedans that require chauffeur licenses, charge more than UberPop. Rivals, including Lyft, which is available only in the United States, also offer low-cost ride-booking services, though global regulatory attention has so far focused on Uber. |
| In India, one of the company’s black sedan drivers was accused of raping a passenger. And in Australia, Uber began raising its rates on Monday just as the police surrounded a cafe in Sydney where an armed man was holding hostages. The move, which Uber 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, though Uber quickly capped how much drivers could charge passengers. | In India, one of the company’s black sedan drivers was accused of raping a passenger. And in Australia, Uber began raising its rates on Monday just as the police surrounded a cafe in Sydney where an armed man was holding hostages. The move, which Uber 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, though Uber quickly capped how much drivers could charge passengers. |
| While a Paris judge ruled last week that UberPop could continue operating, Mr. Brandet, the Interior Ministry spokesman, noted that a French criminal court in October had fined the company $124,000 for deceptive marketing, saying that Uber was operating a taxi service, rather than a ride-sharing program. Uber is allowed to continue operating as it appeals that decision. | While a Paris judge ruled last week that UberPop could continue operating, Mr. Brandet, the Interior Ministry spokesman, noted that a French criminal court in October had fined the company $124,000 for deceptive marketing, saying that Uber was operating a taxi service, rather than a ride-sharing program. Uber is allowed to continue operating as it appeals that decision. |
| 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 $370,000. | 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 $370,000. |
| To adapt to the challenge posed by Uber and similar services, the French government passed the Thévenoud Law. It would require that all drivers who chauffeur paying passengers have a license and appropriate insurance. Drivers for services like UberPop would also have to have 250 hours of professional training, though that is still less than what most taxi drivers, who are considered to be professionals, must have. | |
| Roméo Pestana, president of the French Taxi Association, said it was not clear whether the law could be used successfully to outlaw Uber because it left room for the service to claim that its rights of entrepreneurship were being harmed. | Roméo Pestana, president of the French Taxi Association, said it was not clear whether the law could be used successfully to outlaw Uber because it left room for the service to claim that its rights of entrepreneurship were being harmed. |
| And with just two weeks left in the year, crucial elements of the law remain to be settled. 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 against Uber. It also said any challenges should be heard by a criminal court. | And with just two weeks left in the year, crucial elements of the law remain to be settled. 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 against Uber. It also said any challenges should be heard by a criminal court. |
| Uber has sought to play down safety concerns about its low-cost service. 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, which covers any damage or injuries caused by the driver. | Uber has sought to play down safety concerns about its low-cost service. 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, which covers any damage or injuries caused by the driver. |
| “Of course, we take seriously any comments from French officials,” said Mr. Gore-Coty of Uber, who added that UberPop would still be available in France after Jan. 1. “But this law is extremely fragile. It’s being challenged all over the place.” | “Of course, we take seriously any comments from French officials,” said Mr. Gore-Coty of Uber, who added that UberPop would still be available in France after Jan. 1. “But this law is extremely fragile. It’s being challenged all over the place.” |
| And while some in France have called for the outright banning of Uber’s services, other lawmakers have thrown their support behind the company and the wider so-called sharing economy, which allows people to rent out spare rooms or earn extra cash by chauffeuring others around town. | And while some in France have called for the outright banning of Uber’s services, other lawmakers have thrown their support behind the company and the wider so-called sharing economy, which allows people to rent out spare rooms or earn extra cash by chauffeuring others around town. |
| Talking at a technology conference in Paris last week, Emmanuel Macron, the French economy minister, sided with Uber, saying that the company should not be banned in Paris. | Talking at a technology conference in Paris last week, Emmanuel Macron, the French economy minister, sided with Uber, saying that the company should not be banned in Paris. |
| “You have to be disruptive,” he added. | “You have to be disruptive,” he added. |