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Uber Shut Down In Multiple Countries Following Raids

wired_parrot (768394) writes "Worldwide raids were carried out against Uber offices in Germany, France and South Korea. In Germany, the raids followed a court ruling banning Uber from operating without a license. In Paris, raids followed an investigation into deceptive practices. And in South Korea, 30 people, including Uber's CEO, were charged with running an illegal taxi service."

37 of 366 comments (clear)

  1. the establishment really does not like competition by TheGratefulNet · · Score: 3, Insightful

    I know, licensing has a bit of a reason behind it, but still, I can't help feel that its the established players who want to kill any newcoming competition. that - in itself - really annoys me.

    I wonder if this will backfire and people will want to support the underdog.

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  2. ignoring the law, just dumb. by Gravis+Zero · · Score: 5, Insightful

    ignoring the law is not a good business strategy because you go to jail or at least court. they should have done what other companies do and buy some people in the government and have the laws changed in their favor.

    on second thought, maybe it's for the best.

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    1. Re:ignoring the law, just dumb. by Anonymous Coward · · Score: 1, Insightful

      Ignoring the law, or at least doing an end run around it doesn't seem to be hurting Tesla, who are running up against equally arcane and poor legislation.

    2. Re:ignoring the law, just dumb. by jklovanc · · Score: 4, Insightful

      Tesla is actually following or fighting the dealership laws. They do not have dealerships in States that do not allow them. Another difference is scale. Tesla may have one dealership in a city while Uber could have hundreds of drivers.

  3. Not sure how to feel about this by rsilvergun · · Score: 4, Insightful

    on the one hand Uber screws their drivers marginally less than real taxi cab companies; OTOH there's evidence they're gonna start acting just as bad, and I really don't like how they're getting away with calling what are very, very obviously employees "Independent Contractors". I hired a contractor to fix my fence. The fence has a 10 year warrantee and will likely stand for 20 before it has to be replaced again. Uber needs drivers every day or they go out of business. If Uber can call their drivers "contractors" what's to prevent everyone using that loophole to ignore minimum wage law?

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    1. Re:Not sure how to feel about this by Grishnakh · · Score: 3, Insightful

      If Uber can call their drivers "contractors" what's to prevent everyone using that loophole to ignore minimum wage law?

      Technically, it's against IRS regulations, but in reality, tons of small businesses do this for years and nothing ever happens to them.

    2. Re:Not sure how to feel about this by jklovanc · · Score: 3, Insightful

      The quote about tools is incomplete. Here is the rest of it.

      However, it is recognized that some employers require employees to provide their own tools or vehicles.

      You completely ignore the fact that Uber controls who they pick up. Uber drivers are not allowed to work for Lyft while working for Uber and are not allowed to pick up street fares.

      A driver who is in his vehicle 10 hours a day five days a week picking up only Uber dispatched calls and who's only source of income is Uber is an Uber employee. Are all Uber drivers employees? Probably not. Are some Uber drivers Uber employees? Definitely.

      Uber does not want them designated as employees as they would have to give them things like holiday pay, minimum wage, EI payments, etc.

  4. Re: the establishment really does not like competi by Anonymous Coward · · Score: 5, Insightful

    Except Uber is just exploiting people to enrich themselves.

  5. But they help also by SuperKendall · · Score: 4, Insightful

    To me it doesn't even matter if Uber is exploitive or not. They simply provide a vastly better service than any taxi I have ever used.

    To that extent, they are not "just" anything - they are also helping real people, people that will now have the same problems they did before uber in areas where competition with the driving monopolies are not allowed.

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    1. Re:But they help also by Shadow+of+Eternity · · Score: 5, Insightful

      if their product is so superior they should have no problems complying with basic licensing requirements that exist for very serious reasons.

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    2. Re:But they help also by mjwx · · Score: 1, Insightful

      To me it doesn't even matter if Uber is exploitive or not. They simply provide a vastly better service than any taxi I have ever used.

      So you dont care how a product is made, as long as it's served to you nicely?

      Well you are an Apple fanboy.

      The problem is, every Uber car I've ever gotten into has been a terrible mess, unwashed and bad smelling, much like the drivers. The last one was a Pug 208 deisel that looked like it had never been cleaned since the dealer got rid of it (and it looks like the dealer got rid of by chucking it out with some food scraps). It looked, smelled and sounded like a farmyard. Compared to this where all the taxis in my city are modern clean cars, either Camry hybrids, Prius or on LPG (so they're all quiet as a whisper), cleaned daily by the taxi company, provide you with a legitimate tax receipt (I can claim a lot of my taxi journeys), pay tax, have knowledgeable drivers and above all else, aren't run by sociopathic idiots.

      Uber can keep ripping off their drivers because when they get sick of it, there's a bunch of starry-eyed hopefuls right behind them ready to sell their dignity for a pittance. Eventually they'll run out of suckers and the only people working for them are the ones who have literally been banned from most other jobs though.

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    3. Re:But they help also by Anonymous Coward · · Score: 5, Insightful

      Uh... that so-called "basic licensing requirements" is a joke. There is no reason that Taxi Tokens (licenses) should be as expensive and hard to obtain as they are. Follow the money. Yes, Uber should follow the law, same as every Taxi company. Yes, the law needs to change to something based on science not bribery.

    4. Re:But they help also by lgw · · Score: 1, Insightful

      That "basic licensing requirement" has nothing at all to do with safety. Drivers need to be licensed for safety, the company license is government-granted monopoly, pure and simple.

      But some people want to government to control all the things, and any excuse will do.

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    5. Re:But they help also by stoploss · · Score: 3, Insightful

      You just defended evil.

      Oh, please. I am no friend of the rent-seeking, regulatory-capture taxi cartel, but Uber is unethical as hell. "Herp derp, we're cheaper because we're *disruptive*, definitely it's not because we don't have to comply with applicable regulations."

      The present scenario with Uber is metastable. Either all regulation of commercial transportation should be repealed, or, as I personally prefer, remove the restriction on taxi medallions and reduce the cost of these medallions to be the token amount necessary to verify the safety regulations are being met.

      Either way, the playing field would be leveled and the market could work.

    6. Re:But they help also by Anonymous Coward · · Score: 5, Insightful

      Taxi Tokens exist as a way to limit the number of Taxi's (and thus works as a "Taxi Union" of sorts) , and there are extremely specific licensing requirements just to have one.

      Uber threatens that monopoly. Which is good. There is no reason a Taxi medallion should cost more than the fricken vehicle by a factor of 10. NYC is one example of where the Taxi Medallions are used as investment leverage and not for their intended purpose. Vancouver BC is another (Where Taxi's can't cross city boundaries to pick up fares.) Uber barely had a chance in Vancouver before the Taxi cartel swayed the government against them.

      And in a way Uber is skirting the law much in the way Megaupload did. They know they are operating an illegal taxi service, and barely want to acknoledge the amount of scams going on that use it.

      Hell CSI:Cyber today is basically saying just that "Uber is unsafe"

    7. Re:But they help also by Shadow+of+Eternity · · Score: 4, Insightful

      Of course it doesn't. Just like the EPA has nothing to do with the environment, and the FDA isn't necessary at all for food safety.

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    8. Re:But they help also by beakerMeep · · Score: 4, Insightful

      That "basic licensing requirement" has nothing at all to do with safety.

      Which license? I think if you can show a license that does just amount to graft, then any reasonable person would get on board with the idea that license is bad regulation. Except, the person you are replying to, specifically mentioned safety.

      Neither argument can really be assessed unless concrete specifics are used. While most of TFA mentions "unfair competition" if you click through and read about the original German injunction they mention this:

      http://mobile.nytimes.com/blog...
      The court in Frankfurt found that Uber posed unfair competition to the local taxi industry. It said Uber did not have the necessary licenses and insurance for its drivers and noted that the company could be selective in providing rides, while taxi drivers are required to accept anyone needing a ride.

      To me, at least from these articles, it's a little hard to tell what's in the German rules for taxis. Do you have some info on this? To me it looks like one shady unethical business is bitching about another shady and unethical business, and one has an app. There is a lot of talk about 'complying with the regulations' in the articles, then a lot of slashdotters calling that regulation bullshit, but no mention of what the regulations actually are. So how do you know they are bullshit? Or are you just arguing on a political / emotional level?

      But some people want to government to control all the things, and any excuse will do.

      Beat up that straw man, yo.

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      meep
    9. Re:But they help also by SuricouRaven · · Score: 3, Insightful

      Correct. But you cannot operate any taxi service without one. This means it isn't possible for one person to provide part-time or opportunistic taxi service: It isn't economical to provide a taxi service unless you can run your car continually, hiring multiple drivers. This is intentional, as a quality of service matter: The city doesn't want amateurs with a GPS unit turning up at airports and getting lost with their passengers. It also means Uber's business model cannot be used, and makes it difficult to start new taxi companies by imposing a substantial minimum investment.

    10. Re:But they help also by stoploss · · Score: 3, Insightful

      Its as if you are saying "Uber is unethical, therefore I want the very things that makes the existing system evil to triumph over Uber! Go evil!"

      So, from your perspective, low-cost taxi medallions available to any entity that can prove they have mechanically safe vehicles, drivers who are qualified/not debarred from transporting people, and that have adequate insurance/bonding to pay for injuries to their passengers... is evil.

      Gotcha. Sorry to hear that you are opposed to market-based solutions.

      So okay then, I guess, "go evil!"

    11. Re:But they help also by bickerdyke · · Score: 4, Insightful

      On the other hand the Uber model guarantees that both parties are equipped with a device that works as GPS using recent (online) maps. If the driver "gets lots2 or "decides to show the passenger the scenic route" - he can't charge the passenger for that. So that type of scam is indeed left to professionals.

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      bickerdyke
    12. Re:But they help also by Anonymous Coward · · Score: 3, Insightful

      The city licensing for taxi's has nothing nearly to do with safety. The State and Federal licensing for commercial drivers and vehicles is about safety to a large degree.

      I will put it to you this way.Imagine if the FDA had a limit to the amount of slaughter houses it would licenses and only gave out new licenses very infrequently. Or what if the FDA did the same to drug companies after all wouldn't it be better if we only had 10 drug manufactures. It would simplify the FDA works enormously.

      That is the situation this neo-taxi companies face. It's impossible to get a licenses without paying in some places hundreds of thousands of dollars and waiting years in-line to get one with different rules for different cities.

    13. Re:But they help also by tehcyder · · Score: 4, Insightful

      That "basic licensing requirement" has nothing at all to do with safety. Drivers need to be licensed for safety, the company license is government-granted monopoly, pure and simple.

      But some people want to government to control all the things, and any excuse will do.

      Yes, and some other people don't want the government to control anything. They're called The Rich.

      If you're a billionaire, I can understand the argument, assuming you're some sort of Randian libertarian and base your entire world view on selfishness. But as part of the 99.9% it's madness.

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    14. Re:But they help also by IamTheRealMike · · Score: 3, Insightful

      I think this list sums up the core of the Uber debate. It's a massive pile of accumulated odds and ends that have built up over the years, some of which are clearly useful and others which are clearly irrelevant. Unfortunately taxi regulation is about as exciting as dish water and so there's nothing that can blow away the cobwebs and rationalise things, short of a full blown Uber style takedown.

      Examples of crap in the list above: taxi drivers must know the area they operate in. Really? What does it even mean to know the area? London black cab drivers have to pass an exam called The Knowledge that requires them to memorise street maps of the city, so at least it's well defined there, but this is nonsense from the pre-GPS era. There's no need for cab drivers to do it all in their heads these days, and I'd much rather they rely on the computer which will always pick the fastest route and can't decide to take a detour because the passengers looks like a tourist.

      Another example: drivers must know the radio protocols. Why?! Uber drivers receive instructions via an intuitive smartphone app. Controlling cabs via radio is an obsolete technology yet the requirement to use it lives on.

      Yet another example: cars must be painted a particular colour. Why? Uber cars are located using modern technology, not by watching the roads for vehicles painted in a deliberately ugly colour. This is another obsolete convention progress has made irrelevant - yet it's mandated.

      Then we get to the more questionable things that aren't obsolete exactly, just arguable. Why is it possible to have enough driving violations to be struck off as a cab driver, but still be allowed to drive friends and family around? Surely you're either safe enough to use the public roads, or you're not, and the commercial relationships you have with the people inside make no difference?

      People with a criminal record are banned from working as drivers? ALL crimes? What about crimes that don't involve being actually dangerous, like white collar crimes? Why can't hiring decisions like this be left to the cab companies?

      Taxi drivers must know first aid? Presumably someone injured themselves in a cab once and some regulator thought this was a good response. What if that person injures themselves on the street? Why not require everyone to be trained in first aid? This kind of arbitrary distinction doesn't make much sense until you remember that we have these regulators sitting around with nothing better to do all day than craft rules for their tiny piece of jurisdiction.

      And so on and so on. It's easy to take a reflexive "COMPANIES BAD GOVERNMENTS GOOD" position in these situations, but my experience of regulators have been that they never reform themselves .... all they ever do is add more and more requirements. Short of a company like Uber showing people how differently things can work, how would progress ever be made?

    15. Re:But they help also by bws111 · · Score: 3, Insightful

      The 'market based solutions' you are so in love with were the norm in the past, and they failed miserably. It is why we have the system we have now. It turns out people did not want so damn many taxis on the street that traffic didn't move, taxis running over people to get to a fare because they had to compete with each other, rates that changed at the drivers whim, no accountability, drivers squeezing the most out of each fare because it was unlikely they would get another, etc.

  6. Re: the establishment really does not like competi by JonathanR · · Score: 5, Insightful

    I think they call that "commerce". The drivers are probably exploiting Uber for their own enrichment.

  7. Re:the establishment really does not like competit by quantaman · · Score: 5, Insightful

    I know, licensing has a bit of a reason behind it, but still, I can't help feel that its the established players who want to kill any newcoming competition. that - in itself - really annoys me.

    I wonder if this will backfire and people will want to support the underdog.

    Maybe that's the reason why the laws weren't changed, but it's not the reason Uber is getting shut down.

    They based their business model on breaking the law. When they were told they were breaking the law they ignored the authorities and kept on breaking it.

    There are times when you break laws as a matter of civil disobedience, and there are other times when you break them because they're really hard to follow. This was neither, this was Uber saying they know they're breaking the law with every transaction they make and they're going to keep on breaking the law until you legalize what they're doing because they're make more money that way. That's not how things work, if you pretend the law doesn't exist then you experience the consequences.

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  8. Re:the establishment really does not like competit by l0ungeb0y · · Score: 2, Insightful

    I can't help feel that its the established players who want to kill any newcoming competition. that - in itself - really annoys me.

    Is it that they want to kill competition or is it that they want Uber to abide by the same laws and regulations and pay the same taxes and fees that they do? Is it so annoying that Uber is being punished for not abiding by the laws? If you feel so, then you are an anarchist and opposed to a society based on law. Because only an anarchist sees no value in the rule of law. These laws aren't put into place to restrict competition, as much as they are for consumer protection. How many news articles have you read about Uber drivers raping or otherwise assaulting riders -- I can think of several off hand in the last year. How many news articles have you read about legally licensed cabbies doing the same?

  9. Oligopoly by jklovanc · · Score: 5, Insightful

    Taxis in most cities are oligopolies in that the business is controlled by a few companies. The reason oligopolies are created is that they are compensation for requirements put on them by the government. Here are a few examples of what taxi companies are required to do or have that Uber is not.
    1. Commercial licenses for drivers.
    2. Minimum number of cars on the road
    3. Vehicle inspections
    4. Insurance requirements.
    5. Minimum wage for drivers
    6. Minimum number of handicap accessible vehicles.
    7. Requirement to pick up anyone regardless of race, gender, sexual orientation, etc.
    8. Set rate fares
    9. Background checks
    10. Accountability for drivers' actions (Uber just throws their hands in the air and says "they are a contractor I have no control" while taxi companies get fined)
    11. Governance by a taxi board who decides on fines for poor service.
    The laws for taxis have grown through the years and no jurisdiction in their right mind would want to go back to the days of no taxi regulations.

    If Uber is allowed to flourish they may drive conventional taxis out of business. When the fad of driving for Uber fades we will be in a much worse situation.

  10. Re: the establishment really does not like competi by Anonymous Coward · · Score: 5, Insightful

    I think they call that "commerce". The drivers are probably exploiting Uber for their own enrichment.

    Hahahaha no. Uber doesn't pay to maintain the vehicles, the drivers do. Both cleaning and mechanical upkeep. Uber doesn't pay for the insurance on the vehicle, and many of these drivers will find out the hard way that using it for Commercial Contract work falls outside their insurance terms & conditions. In many cases they will also find out the hard way that what they are doing is technically Commercial vehicle operation, which requires a different class of driver's license in most places- a license which is harder to get and easier to lose. The drivers are the ones liable in the event a passenger decides to sue them for something, and will have to foot their own legal bills to defend themselves. They're going to realize that their tax filing has to be done differently. They're going to find out they're the ones on the hook for not carrying the proper levels of insurance/bonding.

    Look, it's pretty simple. If you get paid to give someone a ride, you're operating the vehicle for Commercial Purposes. There's a whole host of things you have to adhere to in order to do that legally. What Uber is doing is shifting that burden onto the drivers, most of whom don't understand the actual costs involved.

    I like the idea behind what the Uber App itself does, but I dislike how the company actually operates. It's not "ride sharing" if you pay anything at all for the ride, period.

  11. Re: Yay! by Anonymous Coward · · Score: 5, Insightful

    Meanwhile, in right wing capitalist America, the law still doesn't matter if you're a corporation.

  12. Re:Regulation by fluffernutter · · Score: 2, Insightful

    So the question is.. would you put your money in a bank without regulation? ie. Uber

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  13. Re:Wrong Take, Liar by GlennC · · Score: 3, Insightful

    You could save yourself a whole lot of typing by simply repeating, "I'm getting what I want, fuck everyone else."

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  14. Re:the establishment really does not like competit by frank_adrian314159 · · Score: 3, Insightful

    Even when the law is wrong? Really?

    Yes. You obey it or pay the consequences. That's why civil disobedience is so powerful. You are doing something and paying the price to show that something is unjust.

    Sadly, Uber (and most of their supporters) are just a bunch of whining asshats.

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  15. Re:capitalism = race to bottom by diamondmagic · · Score: 3, Insightful

    You could almost say capitalism is... a race to the top? Improving the living standard of everyone, where even the poorest of the poor have A/C and television?
    *gives cookie*

  16. Panama City by Tenebrousedge · · Score: 4, Insightful

    Panama City has essentially zero licensing restrictions on cab ownership. You can always catch a taxi...except that sometimes they won't take you more than a couple blocks because of congestion. You tell them where you want to go before you get in so that they have the opportunity to tell you to fuck off, and that happens as often as not. Generally speaking in those cases you're probably better off walking anyway. The taxis themselves are almost always roadworthy, though!

    Anyone who wants to support Uber should spend some time in Panama City, as an object lesson on the reasons for taxi regulations.

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    1. Re:Panama City by ceoyoyo · · Score: 3, Insightful

      Or spend some time in one of the many places where the local advice is something along the lines of "always take the RED taxis, because they're at least all owned by a company. The others, well, you might make it, or you might not."

  17. Re: the establishment really does not like competi by swb · · Score: 3, Insightful

    I asked my last Uber driver (who was driving her BMW 328i) how she liked it, the money, etc. Her answer was "I drove for a week and quit my two other jobs. It's all I do now."

    Now, if you did some kind of spreadsheet and factored in maintenance, correct insurance, etc, it might end up being "not so good of a deal" but that's really impossible to say unless you're the driver.

    Calling it "exploitation" is hyperbolic in the same way that a Marxist calls anyone working for a capitalist "exploited". OK, within a specific analytic framework and with a specific set of value judgements made maybe it is, but at the same time you can find a lot of other people who one group calls "exploited" who say "What? I'm totally satisfied with this arrangement."