THE HAGUE: Dutch judges yesterday banned the popular ride-sharing service UberPOP from taking bookings via its smartphone app, threatening the US company with fines of up to ¤100,000 ($123,000).
A court ordered Uber to stop its UberPOP service, which allows non-professional drivers to register with Uber via a mobile phone and offer trips in their own cars at half the price of a regular cab.
“Drivers who transport people for payment without a licence are breaking the law,” said the decision from the Hague-based Trade and Industry Appeals Tribunal.
Uber could be fined up to ¤100,000, and drivers could face fines of ¤10,000 for continuing to work, up to a maximum of ¤40,000. A defiant Uber reacted in a statement by saying it “will continue to offer UberPOP.”
Yesterday’s decision “is simply the first step in a long-running judicial battle,” the San Francisco-based company added.
Uber had asked the Dutch court to overturn a government-imposed ban and fines for use of UberPop, the smartphone application used to arrange rides.
“We believe were are offering a service within the spirit of the law. We will continue to offer safe, competitive, quality services to consumers,” said spokesman Thomas van Oortmerssen.
Launched in California four years ago, the service has rapidly become popular in a number of countries because it often undercuts established taxi and minicab services.
However, taxi drivers across Europe say Uber breaks local taxi rules and violates licensing, insurance and safety regulations. It has faced legal action in Germany and a number of European capitals.
UberPOP is one of several services offered by the online taxi startup, which appealed a Dutch government decision in September to have it banned.
Uber said that it was merely offering a “car-sharing service.”
But the judges sided with government, pointing out that Uber receives a 20 percent commission for each trip.
Uber launched UberPOP as a pilot project in Amsterdam between July and September.
Last week Uber extended the service to The Hague and Rotterdam. Several drivers were arrested in Amsterdam in October and fined 1,500 euros. Drivers were also arrested on the first day of operations in Rotterdam. Uber has expanded at breakneck speed since it launched in 2009 and is now present in more than 200 cities across 45 countries.
But its rapid growth has caused tensions, especially in Europe where rival taxi companies have protested that Uber cars are not subject to the same regulations.
AFP
