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January 7, 2016 12:00 pm

Uber In Retreat Across Europe

HughPickens.com writes: Mark Scott reports at the NY Times that Uber is rapidly expanding its ride-hailing operations across the globe but some of Uber's fiercest opposition has come in Europe, where the culture clash between the remorseless competition of the US tech industry and the locals' respect for tradition and deference to established interests is especially stark. In Frankfort, Uber shut its office after just 18 months of operation spurred in part by drivers like Hasan Kurt, the owner of a local licensed taxi business, who had refused to work with the American service. Uber antagonized local taxi operators by prioritizing its low-cost service, and then could not persuade enough licensed drivers to sign up, even after it offered to pay for licenses and help with other regulatory costs that totaled as much as $400 for new drivers. "It's not part of the German culture to do something like" what Uber did says Kurt. "We don't like it, the government doesn't like it, and our customers don't like it." Uber also pulled out of Hamburg and Düsseldorf after less than two years of operating in each of those German cities. In Amsterdam, Uber recently stopped offering UberPop, in Paris and Madrid, Uber has been confronted by often violent opposition from existing taxi operators, while in London, local regulators are mulling changes that could significantly hamper Uber's ambitions there. Uber's aggressive tactics have turned off potential customers like Andreas Müller who tried the company's Frankfurt service after first using Uber on a business trip in Chicago. Müller said he liked the convenience of paying through his smartphone, but soon turned against the company after reading that it had continued operating in violation of court orders and did not directly employ its drivers, who are independent contractors. "That might work in the U.S., but that's not how things are done here in Germany," says Müller. "Everyone must respect the rules."

Read more of this story at Slashdot.


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