Uber clashes with regulators in cities

around the world

From Europe to north America, the ride-hailing company has run into trouble with
authorities over falling foul of rules

Claiming to be a communications platform rather than a taxi service, Uber has expanded by
ignoring existing rules. This has prompted protests against the ride-hailing company by
drivers, run-ins with national authorities, and new laws designed to curb its activities. The
decision by Transport for London to strip Uber of its licence last week was the latest in a
long line of clashes between the US firm and the establishment.

In some cities around the world where it operates, Uber is on a collision course with
regulators, while in others it remains firmly outlawed. In several places, however, the
$70bn (52bn) firm is actively negotiating its return or already back up and running.

Austin, Texas
Uber suspended operations in Austin in May 2106 after the citys voters rejected a proposal
to allow the company to self-regulate its drivers, instead of upholding stricter regulations
proposed by the liberal city council that required ride-sharing drivers to pass fingerprint-
based security checks.

About 10,000 drivers lost their jobs, with some moving to nearby cities where the hailing
app was still allowed. But alternatives respecting the new rules, including a not-for-profit
ride-sharing service, RideAustin, soon emerged and a year later Uber was allowed back
into Austin after the Republican-controlled state intervened.

The state, rather than local city governments, is now responsible for regulating the ride-
hailing industry, requiring local, state and national criminal background checks but not
fingerprints. Now facing a competitive market in Austin, Uber said it knows we have a lot
of work to do in the city.

Bulgaria
Uber suspended its activities in Bulgaria in September 2015 following mass protests and a
threatened strike by Sofias traditional taxi operators, which accused the service of unfair
trade practices because its drivers were working without a taxi licence, a professional
drivers licence or a defined legal status.

After a joint investigation by the tax and transport authorities, the competition commission
fined Uber Bulgaria which claimed 40,000 users 50,000 (44,000) for unfair

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competition and the supreme court banned it. New legislation requires taxi services to be
provided by licensed carriers with qualified drivers hired on formal contracts.

A petition in support of Uber said the service was safe, reliable and affordable and polling
has shown 77% public disapproval of the ban. But Uber shows no signs of returning to the
Bulgarian market. Similar but legal app-based services such as TaxiMe and TaxiMaxim
have since emerged.

Denmark
Uber pulled out of the Danish market, where it had 2,000 drivers and more than 300,000
customers, in April this year when fare meters and seat occupancy sensors became
mandatory for all vehicles providing a taxi service.

Prosecutors had previously accused the company of helping its drivers four of whom have
since been fined up to DKr486,000 (57,000) each to break national taxi regulations
during tens of thousands of rides ruled illegal. A further 1,500 drivers reportedly face
similar charges.

A cheekily named alternative unrelated to Uber, Ubr City, is aiming to get round the new
rules by claiming to be a courier company passengers may only travel with goods, the
definition of which is unclear but it was reported to the authorities just hours after being
launched.

But Uber wants to return. Its Nordic/Baltic representative Kre Riis Nielsen said last month
the company has made mistakes but was now willing to play by the rules, including
ensuring its drivers declared their earnings for tax, paying them sick pay and other benefits,
and adopting digital versions of meters and seat sensors.

Italy
Following a complaint and six-day strike by Italys taxi associations, a Rome court blocked
the use of the Uber app in April for unfair competition. An appeal court lifted the ban in
May but only for the companys premium Uber Black service, which uses fully-licensed
professional drivers.

The companys standard Uber X service and its Uber Pop app for unlicensed drivers
remain outlawed. Uber Italia said it was really happy with the courts decision but
demanded updated legislation so new technologies can improve citizens lives.

Uber Black has only about 1,000 drivers in Rome and Milan, mainly because of the
difficulty of obtaining a professional drivers licence. Most of the apps 139,000 riders over
the last three months were foreigners. Italy is probably the only country left without a low-
cost solution, said an Uber spokemsan Alessio Cimmino.

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Hungary
Uber suspended its operations in Budapest in July 2016 when the nationalist government
passed legislation making it impossible for it to operate following months of persuasive
protests by Hungarys taxi drivers.

The new legislation allowed the Hungarian national communications authority to block all
internet access to illegal dispatcher services. Companies flouting the law face repeat fines
of HUF200,000 (560) and bans of up to a year.

Uber, which claimed 1,200 drivers and 160,000 customers in Budapest, says it hopes to
return to the market. Regular taxi traffic is said to have increased by 50-60% since Uber
pulled out, according to one local taxi firm.

An Estonian startup, Taxify, has stepped into the gap using a GPS-based app but employing
riders directly and providing company cars. Another, Hopin from Slovakia, is expected to
join Taxify soon.

Canada
Uber has said it will suspend its operation in Quebec if authorities there pass new
legislation requiring Uber drivers to undergo a police criminal records check and do the 35
hours of training expected of regular taxi drivers.

Ubers general manager in Quebec, Jean-Nicolas Guillemette, said the new requirements,
coming on top of what the company has called the most restrictive and severe regulations
imposed on us in north America, would deter part-time drivers and it would stop operating
in the province next month if they were implemented.

The service claims nearly a million users and about 5,000 drivers. Trying to impose the
same thing that is currently done in the old taxi industry I dont think it helps us to move
forward and serve the population, Guillemette said.

Angela Giuffrida in Rome and Robert Tait in Prague contributed to this report.