Wednesday 16 April 2014

E.U. Commissioner.

A Brussels court’s decision to ban cars using Uber Technologies Inc.’s taxi application is “crazy” and protects a “cartel,” European Union Commissioner Neelie Kroes said, adding to a global debate about the legality of ride-sharing.

The comments were a welcome piece of good news on the regulatory front for Uber. Although the service has surged in popularity by letting users in cities including New York City, Paris and Tokyo book rides from smartphones, Uber is facing increasing challenges from a taxi industry that’s trying to safeguard its turf.

“This decision is not about protecting or helping passengers,” Kroes, who is in charge of promoting technology and innovation in Europe, said of the Brussels ban on her website yesterday. “If Brussels authorities have a problem with Uber, they should find a way to help them comply with standards.”

Cars in Brussels that use the app will be subject to a 10,000 euro ($13,820) fine after the ruling, said Pierre-Dimitri Gore-Coty, a spokesman for San Francisco-based Uber. He declined on comment on whether the company will appeal.

Recent lawsuits in Chicago, New York and Seattle are targeting ride-sharing services like Uber and Lyft Inc. There’s also a wrongful death case filed in San Francisco, where a 6-year-old child was struck and killed by an Uber driver.

Parisian Taxis

French President Francois Hollande attempted to impose a 15-minute pickup delay on Uber and other private car services, which was struck down in February by the constitutional court. Parisian taxi drivers blocked traffic from airports that month to protest about private car services, which don’t have to purchase a taxi permit at a cost of more than 200,000 euros.

Uber’s Gore-Coty said that the “UberPop” product used in Brussels isn’t comparable to professional services because it’s aimed at individuals who drive their own cars and pick up passengers a few times a week.

“We’re very committed to finding ways so that our product stays in the city,” Gore-Coty said. “We’ve had a lot of support from people in the city.”

Still, Brussels limits taxi licenses to keep the industry viable, and Uber drivers will have to follow rules to ensure safety, said Joris Poschet, a spokesman for transport minister Brigitte Grouwels.

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London's private hire cabs have called on Transport for London to ban cab abb services, such as Uber, from the capital's streets over concerns that they are breaching regulations.

Cab apps have rapidly gained a large user base as they connect passengers with drivers of vehicles for hire or car sharing in dozens of cities around the world.

However, the Licensed Private Hire Car Association (LPHCA), which represents the private hire operators, has said it has lost confidence in TfL's ability to bring the cab apps into line and accused them of "masquerading" as private cabs without following the same rules.

“The Private Hire Vehicles Act ensures the safety of the travelling public. There is deep-rooted concern and evidence, that new app-based operators are not playing by the rules”, LHPCA chair Steve Wright said. “TfL appears to be changing its approach to suit offshore app companies rather than putting the public’s safety first."

"We want to see TfL fulfil its legal obligations to enforce the law effectively, fairly and consistently and so does the travelling public,” he added.

But business groups threw their weight behind Uber as an "innovative" new company in the market. A spokesman for the Institute for Directors told HuffPostUK: “Uber is a fine example of innovative digital disruption, and ultimately it will be consumers who choose which companies become a success – and not old fashioned regulators.

"We appreciate the need for a degree of regulation in this industry, but regulations must adapt to new technologies. The bottom line is that competition is good for customers and good for the economy.”

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