Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Berlin bans car service Uber

Published 08/27/2014, 12:11 PM
Updated 08/27/2014, 12:11 PM
Berlin bans car service Uber

Berlin bans car service Uber

By Bethan John

(This version of the story corrects an August 14 story to make clear in penultimate paragraph that Paris court did not ban Uber)

BERLIN (Reuters) - Berlin has banned car service Uber, which allows users to summon a ride on their smartphone, for not offering drivers and vehicles licensed to carry passengers, or full insurance cover, the German capital said.

The ban takes immediate effect and Uber risks fines of up to 25,000 euros each time it violates the city's Public Transport Act, Berlin authorities said in a statement.

Uber said on Thursday it would appeal against the decision, accusing Berlin of denying its people choice and mobility.

"As a new entrant we are bringing much-needed competition to a market that hasn't changed in years. Competition is good for everyone and it raises the bar and ultimately it's the consumer who wins," said Fabien Nestmann, German General Manager at Uber.

Uber Technologies Inc is a hugely successful San Francisco-based company valued at $18.2 billion. It says that it is nothing more than a company which puts people in contact with each other - a marketplace, not a transportation service.

Drivers have to be over a certain age, have a valid driving license, and undergo background checks before they can pick up any passengers.

"Protecting passengers takes priority. As the supervisory and regulatory body, the agency for citizen's affairs and public order cannot tolerate, that passengers... are entrusted to unlicensed drivers or vehicles, and where in the case of an accident they are not insured," Berlin authorities said.

Uber has faced regulatory obstacles in some cities and lawsuits from taxi companies hoping to keep new competition out.

The service uses smartphones to connect local drivers with people in need of a ride in 80 North American cities, 24 in Europe, 7 in the Middle East, 4 in Africa and 27 in Asia.

Taxi drivers across Europe caused chaos in June by protesting against the Uber app.

Uber was ordered by a Paris court in early August to change its invoicing system if it wished to continue operating there.

Last month a court in the northern German city of Hamburg suspended a ban on Uber imposed by local regulators, while it considers a complaint by the ride service against the ban.

© Reuters. Transportation app Uber driver Shuki Zanna waits for rides in his limousine in Beverly Hills

(Reporting by Bethan John; Editing by Mark Heinrich)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.