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Taxi Newsroom

  • 30/03/2017

    Uber set to pull out of Denmark

    Uber set to pull out of Denmark

    Uber set to pull out of Denmark

    Lately, Uber have met problems at home and abroad: an experimental self-driving car crashed, and the company’s president recently stepped down citing issues with the company's workplace environment. Now, changes to Danish law have forced the ride-sharing company to end its operations in the country with immediate effect.

    The changes that Denmark’s government are soon to implement propose that all hire cars must feature seat occupancy detectors and fare meters, restricting what cars are available for taxi purposes and effectively rendering Uber’s set-up illegal.

    The company remarked: ‘For us to operate in Denmark again, the proposed regulations need to change. We will continue to work with the government in the hope that they will update their proposed regulations and enable Danes to enjoy the benefits of modern technologies like Uber.’

    Uber’s Danish spokesperson, Kristian Agerbo, called the new laws a step ‘in the wrong direction’, but accepted that the company ‘must take the consequences’ of the rulings.

    Uber currently have 300,000 regular Danish riders and work with 2,000 drivers. Rather than withdrawing from the country entirely, they will retain offices in the city of Aarhus, a three-hour drive west of Copenhagen; its forty engineers will continue working on Uber’s app-based tech for the foreseeable future.

    A sign of a wider problem

    Uber’s European woes aren’t just confined to Scandinavia. In fact, the company has encountered legal and civil difficulties across the continent.

    In London, an employment tribunal took Uber to task on account of the insufficient employment rights its workers are provided with, positing that all licensed drivers should receive minimum wage, sick pay and paid holiday. Uber call themselves ‘a mosaic of 30,000 small businesses linked by a common platform’, which the court called ‘faintly ridiculous’.

    Elsewhere, a Paris court last year found Uber guilty of ‘misleading commercial practices’ in the ‘illegal exercise of the taxi profession’, fining the company heavily and handing its French directors hefty suspended sentences.

    Uber has faced similar issues throughout many of Europe and Asia’s leading metropolitan centres, ranging from Taiwan, Barcelona to Berlin.

    The future for Uber

    It’ll be interesting to see how Uber’s fortunes fare over coming years, whether more countries issue legal proceedings against them or if they instead evolve their model to better meet government rulings.

    We’ll be sure to keep an eye on how this situation unfolds. Keep checking back with the Taxi Centre blog for more!

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