Financial News

  • 3 September 2014, 11:01

Uber Taxis Banned From Operating In Germany

The Uber ridesharing service has been banned from operating in Germany pending a court hearing on whether it meets transport safety laws.

The decision to impose an injunction was made by the state court in Frankfurt at the start of a lawsuit brought by the German cab association Taxi Deutschland, which itself operates a similar app-based service.

The Google-backed Uber app allows users to order a car at the touch of a button, and the fare is calculated using GPS tracking.

But it has come under fire from cabbies in many major world cities who argue they are operating illegally.

The German court ruled that Uber could not offer its services without a specific permit and a full hearing to determine its legality would be held at a later date.

The move follows a decision by the authorities in Berlin to outlaw Uber last month amid safety concerns.

Their arguments were in line with those of established cab companies which have claimed Uber's services dodge rules that ordinary taxi firms have to abide by.

Taxi Deutschland cited safety, insurance, wage and tax regulations.

London has been among the cities witnessing protests by established cabbies.

A major demonstration by an estimated 12,000 black cab drivers in June left many roads gridlocked.

They claimed the use of GPS to bill customers was effectively a taxi meter, which only black cabs are legally entitled to use in the capital.

Uber, which is based in San Francisco, said in a statement it would use "all legal means" to fight the case in Germany.

"It's never a good idea to limit people's choices", Uber said.

"We believe that innovation and competition is good for everyone - it profits both drivers and passengers."