Uber faces another setback after ban in Italy
Group’s on-demand limo services face halt after judge’s ruling in competition case
Uber has been banned in Italy by a judge after local taxi groups brought a lawsuit against the embattled car-booking service.
Italy is the latest large European market to attempt to force Uber out, after it lost legal fights in Germany and Denmark. The ruling comes as the European Court of Justice considers whether Uber and other so-called sharing economy companies should be regulated as a transport company or a digital service.
The case in Italy was filed in December by taxi associations which claimed Uber’s service constituted unfair competition to their operations.
Uber, which is fighting regulators around the world as well as struggling with several crises at home in San Francisco, has 10 days to comply with the ruling.
“We are shocked by the Italian court’s decision and will appeal,” Uber said. “Thousands of professional, licensed drivers use the Uber app to make money and provide reliable transportation at the push of a button for Italians.”
The ban applies to Uber’s on-demand limo services such as Black but not its Eats food delivery, which operates in several Italian cities.*
The competition complaint arose because Uber’s drivers do not have to return to a central garage or hub after each fare, unlike traditional regulated car services. The same issue has disrupted Uber’s services in Germany over the past year.
Earlier this year Uber’s global challenges extended to Taiwan, where it has faced a crackdown over its refusal to register as a traditional taxi service, with the accompanying safety and insurance standards. Uber pulled out of Taiwan in February after fines mounted up against its drivers, totalling millions of dollars.
“Unfortunately, the government has moved further and further away from embracing innovation and setting the stage for a 21st century transportation policy,” Uber said in a blog post at the time. “We hope that pressing pause will reset the conversation and inspire President Tsai [Ing-wen] to take action.”
As well as battling regulators abroad, Uber is fighting litigation from Alphabet’s Waymo unit, which accused a former employee of stealing its self-driving technology. Travis Kalanick, Uber chief executive, has also been grappling with allegations of widespread sexism in its San Francisco headquarters. After its president of ride-sharing abruptly quit last month, the company has been searching for a new chief operating officer to support Mr Kalanick.