Uber runs into trouble with government regulators
BANGKOK (Reuters) – Thailand has ordered US online taxi booking company Uber to cease operations, on the same day taxi apps were banned in the Indian capital New Delhi where an Uber driver is under arrest for suspected rape.
Thailand’s Department of Land Transport said drivers picking up farepaying passengers via Uber's app were neither registered nor insured to drive commercial vehicles, and that Uber's credit-card payment system did not comply with regulations.
"They have to stop operations immediately," Director- General Thiraphong Rodprasert told reporters after meeting officials from Uber and rival cab-hailing apps GrabTaxi and EasyTaxi to discuss regulating Internet taxi services.
The meeting was arranged before a passenger in New Delhi reported she had been raped by a driver contracted to Uber. The incident brought taxi apps to the attention of Indian authorities, who on Tuesday banned all unregistered Internet taxi firms from operating in the capital.
In Madrid, a judge has ordered US-based online car booking company Uber to cease operations in Spain, the latest ban on the popular service.
The judge on Tuesday imposed an injunction on services after a request by the Madrid Taxi Association, which is preparing a legal case against Uber accusing it of unfair competition.
Taxi drivers around the world consider Uber unfairly bypasses local licensing and safety regulations by using the internet to put drivers in touch with passengers.
"The measure... has been taken without hearing from the company Uber because of the damage being caused to taxi service operators and because Uber is a company domiciled in the US fiscal paradise of Delaware," said the judge in his ruling.
In the same ruling, the judge ordered telecommunications and electronic payment companies to ban Uber transactions.
The decision came the same day as a court in India ordered state governments to halt the operations of all unregistered, web-based taxi companies after a woman said she was raped by a driver working for Uber.
Meanwhile, Portland sued Uber on Monday to stop the fast-growing ride-hailing service from operating in the Oregon city until it follows local regulations.
Uber operates in areas around Portland, but only started up in the city itself on Friday, without consent from authorities or any agreement over how it should be regulated.
"The city's lawsuit is asking for a declaration by the court that Uber is subject to the city's regulations," the city said in a statement. "The lawsuit also asks the court to order Uber to stop operating in Portland until it is in compliance with the city's safety, health and consumer protection rules."
Local media reported that the service has been available in Portland for the past few days.
"Uber has received a tremendously warm welcome from riders and drivers in and around Portland. We appreciate the way residents have welcomed Uber into the Rose City, their support illustrates why it's time to modernize Portland transportation regulation," said Uber spokeswoman Eva Behrend.
The online ride service was valued at $40 billion last week after its latest funding round ahead of an expected initial public offering.
However, it has been dogged by controversy surrounding its aggressive approach to local governments and traditional taxi services.
It has been banned from taking bookings in the Netherlands because authorities say it lacks a special license.
The case is City of Portland v Uber Technologies Inc., filed in the Circuit Court of the State of Oregon for the County of Multnomah.
Taxi booking apps have irked drivers at traditional taxi firms across the globe. Consumers are increasingly using the smartphone software to find people willing to drive them, rather than booking a cab by phone.
In Thailand, Uber's app acts as a matchmaker between owners of private vehicles and passengers, and has its own fare structure. GrabTaxi and EasyTaxi work with traditional taxi firms, using regular meters to calculate fares.