14 DAY TRIAL // The US based online taxi service Uber has received a hit in Germany after a regional court issued a temporary injunction against the service.
The Judge said that its drivers lacked necessary commercial permits, so Uber could end up completely banned from operating in German cities.
This is bad news for the San Francisco company since Germany is one of the fastest growing markets in Europe for them. “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,” the company’s spokesperson told the BBC.
The issues in Germany are related to the low-cost UberPop service, which connects users with other people going in the same direction. Just as it happened in other cities around the world, Frankfurt taxi companies didn’t really see the benefits of Uber since the service is driving away customers.
UberPop was launched earlier this year and involves drivers who aren’t directly employed by the company, but who are over the age of 21, who use their own cars to transport passengers.
The company that sued Uber claims that the Passenger Transport Act regulates the protection of both drivers and consumers, which can’t be easily overturned by a company, no matter how “neoliberal” it is.
Drivers signed up on the classic Uber service must carry valid driving licenses, have necessary local permits and go through background checks before they are allowed to pick up passengers.
At this point in time, Uber is banned across Germany due to the decision taken by the Frankfurt court, but this can easily be overridden if the company appeals it, which is clearly something that’s going to happen.
The taxi company that sued Uber says that there are issues to consider, such as the interests of German drivers and citizens.
“In Germany there’s insurance that applies to private drivers. 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,” said Taxi Deutschland’s spokesperson, Anja Floetenmeyer.
On the other hand, Uber claims that safety is one of its main concerns and that all the rides, including the travelers, are insured by Uber.