Hong Kong jails 21 Uber drivers
Disputes on Israeli permits, NYC payments also tie up firm
HONG KONG — Hong Kong police targeted the Uber ride-hailing service again on Tuesday, arresting 21 drivers.
It’s the latest regulatory headache for Uber, which already is fighting a similar case in Hong Kong.
The drivers were arrested in an undercover operation on suspicion of carrying passengers for hire and not having third-party insurance for their cars, said Chief Inspector Lau Tat-fai.
Lau said 20 men and one woman, ages 21 to 59, were arrested and that their vehicles were impounded.
“I would like to emphasize that police are still continuing their enforcement action, and I can’t rule out the possibility of more drivers being arrested,” he told reporters.
Lau, who did not specifically mention Uber, said anybody who “assisted or instigated” drivers might also be legally responsible. He called on people using smartphones to arrange rides to make sure that drivers have the proper vehicle-hire permits.
“We are extremely disappointed by the police enforcement today. We stand together with the 21 driver partners,” Uber said in a statement, adding that it would help them and provide legal support.
The San Francisco-based tech company said it has a ride-hailing insurance policy that complies with Hong Kong legal requirements and covers up to $12.8 million in liability.
“Ride-sharing should not be a crime. Hong Kong is an international city known for its embrace of global economic trends and new technologies, but current transportation regulations have failed to keep up with innovation,” it said.
In March, a Hong Kong court convicted five Uber drivers on the same charges and fined them about $1,300 after they were arrested by undercover police. The company said it would stand by the five drivers, whose sentences were suspended after they appealed the convictions.
In 2015, police searched Uber’s Hong Kong offices and confiscated computers and documents.
Also on Tuesday, Israel’s Transport Ministry issued an indictment in a Tel Aviv court against Uber Technologies Inc., saying it picked up passengers for a fee without a government license, according to a ministry statement.
Undercover agents posed as passengers over several months, the ministry said.
Uber launched its service in Israel in August 2014, and it is attempting to lure users away from Israeli rival Gett Inc. However, its UberX ride-hailing service has remained illegal in the country, where drivers are banned from charging for rides in private cars.
Instead, Uber has been offering an UberNight service in Tel Aviv, which is offered between 7 p.m. and 2 a.m., when passengers pay private car drivers what it calls a reimbursement for expenses, such as fuel.
An Uber spokesman said by phone that the company developed the UberNight service specifically for Israel and in accordance with local regulations. “Uber will continue to act to reduce the cost of transportation in Israel,” the company said.
Uber on Tuesday also announced that it has underpaid its New York City drivers by improperly calculating the company’s share of passenger fares, and that it will pay out about $900 per driver in restitution, costing the company tens of millions of dollars.
The company previously acknowledged that it misled drivers about how much they could make and that it miscalculated fares. In the latest incident, Uber was taking its cut of fares based on the pretax sum, instead of after taxes and fees as stated in its terms of service. The issue was also raised in a lawsuit filed against Uber by the New York Taxi Workers Alliance.
“We are committed to paying every driver every penny they are owed — plus interest — as quickly as possible,” Rachel Holt, Uber’s head of U.S. operations, said in a statement. “We are working hard to regain driver trust, and that means being transparent, sticking to our word, and making the Uber experience better from end to end.”
The Wall Street Journal reported earlier on Uber refunding money to drivers.
“Uber’s theft of drivers’ hardearned wages is the latest in a long history of underhanded tactics in this industry,” said Jim Conigliaro Jr., founder of the Independent Drivers Guild, which represents Uber drivers in New York. The guild called on regulators to investigate ride-hailing companies’ payment practices.