Uber in Europe has gone through one more major setback. As per media, a court in Germany claimed this week that the firm does not have the required permit to operate a business that uses for-hire drivers.
In Germany and other regions of the EU, Uber works differently as compared to how it does in North America. Owing to a 2017 verdict by the highest court of EU, the firm operates wholly with PHV (private hire vehicle) firms and their permitted drivers. This week’s verdict bans the firm from providing rides to users in the 7 regions where Uber works in Germany.
Apart from the license breach, the court discovered various problems with dispatching process of Uber, comprising the fact that users can accept a job inside its app without their authorized employer first getting it. In addition to this, below German law hired vehicles are mandatory to get back to their company’s primary office after dropping a user off.
“From a user’s view point, Uber offers the service itself and is hence an entrepreneur,” the court claimed, going on to include that Uber must obey the passenger transport rules of the nation.
The taxi association in Germany that brought the lawful challenge in opposition to Uber claimed that it aims to seek instant temporary enforcement of the ban. Uber can pay penalties as much as €250,000 for each ride if it does not obey the court’s verdict. The firm can appeal the verdict, though.
“We will probe the ruling of the court and decide next actions to make sure our services in Germany persist,” a company spokesperson claimed to the media. “Operating with professional drivers and permitted PHV operators, we are promised to being a true associate to German regions for the long term.”
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