Uber Banned In Germany But Continues London Price War

BethPH
By BethPH Last edited 41 months ago
Uber Banned In Germany But Continues London Price War

taxi protestThe company behind the controversial Uber cab application has been issued with a temporary injunction after a Frankfurt court ruled against it over licencing concerns.

The smartphone app allows passengers to call a cab and instead of using a meter, calculates the fare en route. London's taxi drivers argue that it's unfair competition and staged a protest in June which saw gridlock around Parliament Square and Trafalgar Square. However heartened London's cabbies might be about the German ban, it's unlikely to be permanent — though Uber risk heavy fines if it flouts it.

Transport for London (TfL) dismissed the claim by the Licensed Taxi Drivers Association (LTDA) that Uber is operating unlawfully. TfL's subsequent attempt to get a High Court ruling has been delayed — by the LTDA taking its own legal action against individual Uber drivers. While clearly unwilling to be drawn ahead of any High Court ruling, Boris Johnson did at least come off the fence to describe the company as 'excessively bumptious' last month.

Meanwhile, Uber continues its war of attrition with London cabbies by launching a cab-sharing app and cutting its prices by 15%. Both of these mean that some journeys could be cheaper than peak tube fares.

Photo by bonneville kid in the Londonist Flickr pool.

Last Updated 02 September 2014

Jimmy W

I don't understand why it's even being called "controversial" as if they were doing something wrong. They are offering a cheaper competitive fair. I think UBER are great.

Michael Blom

There is also the tax issue (before even considering the meter issue). Black cabbies will pay full taxes here. Uber will skirt UK taxes through clever schemes. That means worse schools/health care/roads etc...

perhaps

Unfortunately for cabbies, there is a gap in the market for more affordable, reliable & seamless transport that they cannot fill. Whether Uber fills this gap or not, someone will. The issue for cabbies, stems from T4L, they are regulated in such a way that a gap is left in the market and they will throw a fit anytime someone attempts to disrupt & fill the gap, but eventually they will lose out long term. If your business is too expensive to run, and you naturally pass those costs on to your customers, and someone comes along with a more affordable solution for your customers, then you need to look at why your business is too expensive to run, and that, for cabbies, is T4L. Oh and how do I know this? Good old chit chat with union reps.