Uber May Face Third German Setback as Munich Weighs Joining Ban
2014-08-20 06:28:51.467 GMT
By Karin Matussek
Aug. 20 (Bloomberg) -- Uber Technologies Inc., maker of the
ride-hailing application that’s fighting bans by two German
cities, may face a third setback in the country.
The Munich administration agrees with Berlin and Hamburg
that those offering rides via Uber’s smartphone app need a cab
driver’s license because they are doing so to earn a profit,
according to Daniela Schlegel, a Munich spokeswoman.
“We’re currently focusing on the drivers whom we’ll
control and fine if they transport people without a license,”
Schlegel said in an interview. “But we’re also considering
whether to issue a ban later in the process.”
Governments and regulators in cities around the world are
restricting Uber’s business on the grounds it poses safety risks
and unfairly competes with licensed taxi services. Cabbies with
licenses that can cost 200,000 euros ($266,000) apiece have
staged protests in European cities including London, Madrid,
Paris and Berlin.
“Munich is a progressive, modern city and we want to play
our part in bringing innovative transport solutions to the city
and beyond that can help improve social mobility, support the
environment and provide a safe, cost effective alternative to
traditional travel,” Fabien Nestmann, a company representative,
said in a statement to Bloomberg News.
Investors including Goldman Sachs Group Inc. and Google
Ventures are pouring cash into the burgeoning market for apps
that let users order taxis and cars or share rides using their
smartphones. San Francisco-based Uber, which is active in more
than 40 countries, raised $1.2 billion in June, giving it a
value of $17 billion.
Enforcement Suspended
Hamburg traffic authorities told Uber last month to stop
operating in the port city, saying that transporting people
without a license is against the law. Berlin followed last week.
Both cities are waiting to enforce their decisions until courts
rule on the matter following lawsuits by Uber to block the
measures.
In Germany, Uber also operates in Frankfurt and Dusseldorf
and plans to extend its services to Cologne and Stuttgart.
Frankfurt’s city government is reviewing the legal issues the
app raises “from all sides,” a spokesman said.
For Related News and Information:
Uber Taxi Service App Banned by City of Berlin
NSN NA9ATB6JTSEJ<GO>
Uber ’Dishonest’ in Innovation Claim, Hamburg Senator Tells WiWo
NSN N9ZOWU6K50Y0<GO>
Uber Demonstrations Snarl Traffic From London to Berlin: Cars
NSN N70Q326K50XU<GO>
--With assistance from Stefan Nicola in Berlin.
To contact the reporter on this story:
Karin Matussek in Berlin at +49-30-70010-6218 or
kmatussek@bloomberg.net
To contact the editors responsible for this story:
Anthony Aarons at +44-20-7673-2227 or
aaarons@bloomberg.net
Chad Thomas, Kenneth Wong
2014-08-20 06:28:51.467 GMT
By Karin Matussek
Aug. 20 (Bloomberg) -- Uber Technologies Inc., maker of the
ride-hailing application that’s fighting bans by two German
cities, may face a third setback in the country.
The Munich administration agrees with Berlin and Hamburg
that those offering rides via Uber’s smartphone app need a cab
driver’s license because they are doing so to earn a profit,
according to Daniela Schlegel, a Munich spokeswoman.
“We’re currently focusing on the drivers whom we’ll
control and fine if they transport people without a license,”
Schlegel said in an interview. “But we’re also considering
whether to issue a ban later in the process.”
Governments and regulators in cities around the world are
restricting Uber’s business on the grounds it poses safety risks
and unfairly competes with licensed taxi services. Cabbies with
licenses that can cost 200,000 euros ($266,000) apiece have
staged protests in European cities including London, Madrid,
Paris and Berlin.
“Munich is a progressive, modern city and we want to play
our part in bringing innovative transport solutions to the city
and beyond that can help improve social mobility, support the
environment and provide a safe, cost effective alternative to
traditional travel,” Fabien Nestmann, a company representative,
said in a statement to Bloomberg News.
Investors including Goldman Sachs Group Inc. and Google
Ventures are pouring cash into the burgeoning market for apps
that let users order taxis and cars or share rides using their
smartphones. San Francisco-based Uber, which is active in more
than 40 countries, raised $1.2 billion in June, giving it a
value of $17 billion.
Enforcement Suspended
Hamburg traffic authorities told Uber last month to stop
operating in the port city, saying that transporting people
without a license is against the law. Berlin followed last week.
Both cities are waiting to enforce their decisions until courts
rule on the matter following lawsuits by Uber to block the
measures.
In Germany, Uber also operates in Frankfurt and Dusseldorf
and plans to extend its services to Cologne and Stuttgart.
Frankfurt’s city government is reviewing the legal issues the
app raises “from all sides,” a spokesman said.
For Related News and Information:
Uber Taxi Service App Banned by City of Berlin
NSN NA9ATB6JTSEJ<GO>
Uber ’Dishonest’ in Innovation Claim, Hamburg Senator Tells WiWo
NSN N9ZOWU6K50Y0<GO>
Uber Demonstrations Snarl Traffic From London to Berlin: Cars
NSN N70Q326K50XU<GO>
--With assistance from Stefan Nicola in Berlin.
To contact the reporter on this story:
Karin Matussek in Berlin at +49-30-70010-6218 or
kmatussek@bloomberg.net
To contact the editors responsible for this story:
Anthony Aarons at +44-20-7673-2227 or
aaarons@bloomberg.net
Chad Thomas, Kenneth Wong