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German Court Bans Uber For Violating Passenger Transport Laws

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A regional court sitting in Frankfurt, Germany, has banned Uber from sending ride-hailing requests to rental car companies via its app. This is after finding multiple competition violations of the laws guiding passenger transport in the country.


According to Reuters, the ride-hailing startup lacks the necessary licence to offer passenger transport services using rental cars. This is following a legal challenge brought by a German taxi association.


A User Navigating the Uber App


It comes after Uber lost its licence to operate in London a second time after the city’s regulatory body discovered more than 14,000 rides are by unauthorized drivers. This occurred between late 2019 and early 2019, putting passengers at risk.


Uber had also briefly lost its London licence in 2017 due to safety concerns.


In Germany, the company works exclusively with professional and licensed private-hire vehicle (PHV) companies. These companies have drivers and cars who have the necessary licences and permits to transport passengers.


So essentially the court ban outlaws Uber’s current model in the country except it’s able to make changes to come into compliance.


A spokesperson said in a statement on behalf of the company:


“We will assess the court’s ruling and determine the steps to ensure our services in Germany continue,


“Working with licensed PHV operators and their professional drivers, we are committed to being a true partner to German cities for the long term.”

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Uber Has To Comply With Laws Governing Passenger Transport

One of the core issues identified as a violation by the court is Uber’s lack of a rental license.


In 2015, the court reportedly banned the company from pairing drivers using their own cars with ride hailers. Its current service allows customers hail rides that are carried out in rented cars.


Uber advertised rides to customers in a way that led them to view it as the provider of the transport service, the court reportedly said, adding that the firm also selects specific drivers and determines prices.


“From a passenger’s point of view, Uber provides the service itself and is, therefore, an entrepreneur,” the presiding judge said.


Now the court rules that this is also illegal, as it violates competition rules. This means Uber has to comply with laws governing passenger transport in its operations.


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