|
 Legal challenges in several European markets have become an
increasing problem for Uber as it expands outside the United States
to build on a $40 billion valuation that makes it the world's most
valuable venture-backed start-up.
A loss in France would add to a recent court decisions against
UberPOP in Germany and the Netherlands, as well as an outright ban
in Spain.
A French decision could come as early as June or by the end
September, depending on whether the issues go all the way to
France's Constitutional Council or are handled by a lower authority,
according to court documents reviewed by Reuters.
While courts examine the constitutional issues in France, Uber will
continue to operate UberPOP, which allows individuals to use their
private cars to offer rides to others at cheaper rates than
traditional taxis.
The case was brought by competing car services LeCab,
GreenTomatoCars, Transdev Shuttle and a taxi union.
The decision will not affect Uber's more traditional service, which
allows licensed professional drivers to pick up customers who hail
them using their smartphones.
Created by two Silicon Valley entrepreneurs frustrated by
difficulties encountered when trying to hail a cab in Paris, Uber's
popular app was launched in 2010 and is now available in nearly 270
cities.
COMPLAINTS
The company, however, has attracted widespread criticism of its
business style of moving first and asking permission later. It has
faced complaints around the world over how it pays drivers, charges
passengers and ensures their safety.
Local taxi companies, which often have to pay steep license fees,
argue that Uber is competing unfairly by not respecting local
regulations.
Uber's usual defense is that it does not fall under rules governing
taxi operators because its smartphone app merely acts as an exchange
connecting drivers with clients.
[to top of second column] |
"UberPOP will continue," Pierre-Dimitri Gore-Coty, who heads Uber in
western Europe, told Reuters. "We are not cowboys, but we intend to
revolutionize urban transport."
In France, the government sought to calm conflicts between taxis and
Uber by reworking the rules on how traditional taxis compete with
chauffeured cars.
The so-called Thevenoud law required chauffeured cars to return to a
base between fares, restricted their use of localisation software to
find clients in the street and banned unlicensed service, among
other measures.
The law, passed in October, is now being contested by Uber at the
European Commision and in France.
Uber's Paris office was raided two weeks ago by French police who
confiscated 1,200 cell phones, some computers and documents. A
French judiciary source said the raid was part of an investigation
begun in November into whether the company was breaking the
Thevenoud law and illegally retaining customers' personal data.
(Additional reporting by Eric Auchard; Writing by Leila Abboud;
Editing by Andrew Callus and David Goodman)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
