Taxi booking service Uber is facing a lot of tough challenges on its path to supposed worldwide domination. In the past few weeks, it has been struggling to strengthen its brand because of the controversies. Apart from a series of bans, the company is facing allegations of rape and concerns over the competition in the industry.
This article looks at the top three worldwide pressures Uber experiences right now.
Complaint on Unfair Competition in Spain
Last week, a judge has ordered Uber to stop operating in Spain amid massive protests by several established taxi associations. In the ruling of temporary ban, the judge said the company’s drivers did not have authorization. As a result, the Madrid taxi association filed a complaint that Uber was “unfair to competition.”
An Uber spokesperson, however, released a statement claiming that the company is “still operating.”
“UberPop is our ride-sharing solution and is about sharing the costs of vehicle ownership and helping people give up their cars,” an Uber spokesman said in its statement, “and we will continue to run the service.”
“This ruling is inconsistent with broad political acknowledgement in Spain and across the European Union on the benefits of sharing economy services. Uber will continue to comply with Spanish law and is currently assessing its legal options under this sudden and unusual proceeding,” the spokesman added.
France’s Ban on UberPop
France implemented a new law tightening its regulations for chauffeured rides.
Starting next year, January 1, Uber’s low-cost ride service will no longer be available in France. The government announced its decision, as hundreds of cab drivers blocked roads around Paris to complain what they consider as unfair business practices.
“Currently, people who use UberPop are not protected if there is an accident. So not only is it illegal to offer this service, but for the consumer there is a real danger,” said Pierre-Henry Brandet, spokesman for France’s Interior Ministry.
Several taxi companies complain that Uber do not face the same requirements, taxes, and insurance as others.
Rape Claim in New Delhi
The alleged rape of a female passenger by an Uber driver has forced the authorities to shut down the taxi booking service last December 15. India ordered an internal review of its operations in the city, which will include a full audit of how it accepts or verifies riders and feedback.
The local officials explained that they would take necessary legal action against the company due to its failure to conduct appropriate checks on the driver. Uber has a permit to transport passengers from one city to another. But, it does not have a license from the local government to shuttle passengers from one point to another inside the city.
Industry watchers say that Uber won most of its battle, but the fight is not over yet.