The car pick-up service Uber has been banned from operating in Germany. A Frankfurt court made the ruling as the arguments raged on. A spokesperson for Uber said that it will not abide by the ban and will continue operating whilst an appeal is lodged. It was informed last week that it would face massive fines of up to €250,000, per trip, if it continued picking up passengers.
The lawsuit, fled by Taxi Deutschland was upheld. Uberpop was launched earlier in 2014 and is described by Taxi Deutschland as a “form of locust share-economy” adding that that it would leave passengers exposed in the case of an accident. Taxi Deutschland spokeswoman Anja Floetenmeyer said, “In Germany there’s insurance that applies to private drivers. But if your insurer learns that you are driving for an app and you want to make money on that, they say this is a multiple risk and refuse to pay insurance on that. Uber doesn’t care because security costs money. We don’t believe it has the interests of [German] drivers and citizens at heart.” Uber counter claimed, by stating that all passengers are insured by Uber.
Uber is an American company based in San Francisco and allows passengers to summon up private cars using an App on their smartphone. Taxi drivers argue that they have an unfair advantage as there are less restrictions imposed upon them. Uber, backed by Google and Goldman Sachs, has been the cause of protests by taxi drivers across Europe in cities such as London, Paris and Berlin.
This is a case that is set to run and run, but in the meantime we will have to wait and see whether the meter or the phone app, wins.