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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."

28 of 366 comments (clear)

  1. Mayber Uber will pay ... by CaptainDork · · Score: 4, Funny

    ... a fine using Bitcoin and stuff.

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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 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. Re: the establishment really does not like competi by bill_mcgonigle · · Score: 5, Interesting

    Throughout history, poverty is the normal condition of man. Advances which permit this norm to be exceeded - here and there, now and then - are the work of an extremely small minority, frequently despised, often condemned, and almost always opposed by all right-thinking people. Whenever this tiny minority is kept from creating, or (as sometimes happens) is driven out of a society, the people then slip back into abject poverty.

    This is known as "bad luck." - Robert A. Heinlein

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

    Except Uber is just exploiting people to enrich themselves.

  6. Free rides for everyone by Dorianny · · Score: 5, Interesting

    Ubers plan for for entering a new markets has always been to start the service under the radar without asking permission. Once the have reached a certain number of users, a critical mass of sorts, they start advertising the service heavily relying on the user base to make a big stink if the regulatory agencies or courts try to stop them. In South Korea they went as far as offering free rides to everyone in order to keep in line with regulations but mostly to influence public opinion. The powers that be were clearly not amused.

  7. 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 Grishnakh · · Score: 4, Informative

      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.

      This is mostly the way I feel, with an exception: in Manhattan, I can't imagine why you'd want to bother with Uber. Uber requires starting an app on your phone, punching in a destination, waiting for someone to get to you, etc. With a taxi, you just stand on the side of the street and raise your arm, and one is there in seconds. But Manhattan is exceptional that way.

      Everywhere else (meaning places that aren't as dense as Manhattan, mainly suburban areas), cabs are a total PITA. You have to look them up somehow, wait 30-60 minutes for them to arrive, then give the dumb driver turn-by-turn directions because he has no idea where your destination is, then at the end you find out the fare is astronomical. Uber is easy, fast, you can see how long it'll take the driver to get to you, and the cost is much less.

    2. 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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    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 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"

    5. 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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    6. 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
    7. 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
    8. Re:But they help also by Jesus_666 · · Score: 4, Informative

      IANAL but a bit of googling revealed that apparently German taxis are subject to at least these laws or parts of them: (I'll selectively paraphrase; there's quite a bite more in there.)

      Personenbeförderungsgesetz (PBefG): Contains rules for passenger transportation with trams, trolleybuses and motor vehicles. Apparently trains are covered elsewhere. Only some of the rules apply because cars (vehicles that can transport up to six people including the driver) have a special exception.


      Verordnung über den Betrieb von Kraftfahrunternehmen im Personenverkehr (BOKraft): Contains rules for passenger transportation companies that use trolleybuses or motor vehicles. This seems the most important one for taxi companies and covers things like vehicle maintenance, whether subcontracting is allowed, notification requirements, how to deal with lost property

      The taxi-specific sections cover things like technical requirements, such as an alarm wired to the horn and lights that the driver can activate from their seat, a calibrated and illuminated taximeter or an optional bulletproof divider. Taxis must be painted with the color RAL 1015 of the RAL 840 HR palette and must have a "TAXI" sign of specific orientation and dimensions on top. They must display their taxi registration number in a specific style and place and also display the name and address of the company where the passenger can easily read them. Taxi drivers must take the shortest possible route to their target; if another route would be cheaper or faster, this has to be cleared with the passenger beforehand.

      There's also some stuff in there that most people don't know - for instance, BOKraft-covered transport vehicles must have a copy of the laws governing pricing pnboard and must show them to the passenger upon request.


      Berufszugangsverordnung für den Straßenpersonenverkehr (PBZugV): Contains rules on who is allowed to transport other people. People with a criminal record or a record of severe traffic law violations are banned from working as drivers; company-level misbehavior might disqualify an entire company. Companies must have enough money to keep their fleet in shape. They must regularly check whether all drivers are still qualified to work as taxi drivers.

      Drivers (in order to be hirable) must have an understanding of the laws governing passenger transportation, of vehicle maintenance, of radio protocols, of certain accounting procedures and even of environmental guidelines on vehicle operation and maintenance. They must pass two written and optionaly one additional oral exam of one hour each with the local chamber of industry and commerce; alternatively, five years of work in a different BPZugV-covered company can be seen as equivalent.


      Paragraph 48 Fahrerlaubnisverordnung (FeV): contains rules on taxi driver licenses. Examples: Taxi drivers must prove they know the area they operate in and that they have an appropriate understanding of first aid. If the driver is found unreliable, the license can be revoked (e.g. this once happened after a driver repeatedly refused to make short distance trips). Taxi driver licenses have to be reapplied for every five years.


      Others, like the FPersG and FPersV, cover legal technicalities like when and how to have your license card with you etc. Additionally, municipalities may pass additional regulations.

      So yeah, the law is pretty clear: None of the people who work for Uber are licensed to do so, thus they can't guarantee that they know about stuff like applying laws or where to drive. They can't even guarantee that the drivers aren't explicitly banned from working as drivers. Of course the law is going to come down hard on them.

      If ridesharing is here to stay the law might adapt, but only by relaxing the signage requirements for very small companies. You'd still have to have a taxi driver's license, you'd still have to register the car and you'd still have to demonstrate an u

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    9. 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.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  8. Not doing well in The Netherlands either by SpzToid · · Score: 5, Informative

    The Netherlands regulates taxis in order to maintain various standards of safety and fair competition. But Uber is an app that doesn't play by the rules. So they've been busted, several times.

    Initially the drivers received warnings.

    Then the fines started to increase, which Uber Corp. seems happy to pay. In January the penalties were 10,000 euros, and unlicensed drivers risk a criminal record:
    (in Dutch) http://www.nu.nl/internet/3978...
    (English, machine translation)

    Did that stop Uber, even when they were warned the next time, and subsequent violations would become 100,000 euros. No way!
    (in Dutch) http://www.nrc.nl/nieuws/2015/...
    (English, machine translation)

    Uber defends itself by saying that innovation is faster than legislation. Uber says The Taxi Act of 2000, is outdated, and just keeps on truckin'

    --
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  9. 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.

  10. 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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  11. Re:the establishment really does not like competit by imunfair · · Score: 4, Informative

    It's definitely just a way to kill competition. The taxi companies are mad that Uber isn't buying million-dollar medallions for each taxi - which would make their business model completely un-viable.

    You want to know how to handle it properly and prevent crime? Look at what Portsmouth, NH did in response - not surprising since they're the home to the Free State Project. They disbanded the entire Taxi Comission and removed any extra restrictions on the normal cab companies that would prevent them from competing on a level playing field with Uber.

    This doesn't mean there are no regulations - it means that Uber drivers are required to pay for the cost of a background check by the police department, and provide proof of insurance. This cost is tiny in comparison to buying a medallion, and provides the same level of safety as the background checks the taxi companies were running.

    It's sad that a logical response by government is a surprise - adapting to changes while protecting citizens should be the basic mandate of government, not an exceptional feat.

  12. 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.

  13. Re:the establishment really does not like competit by rsmith-mac · · Score: 4, Informative

    This doesn't mean there are no regulations - it means that Uber drivers are required to pay for the cost of a background check by the police department, and provide proof of insurance. This cost is tiny in comparison to buying a medallion, and provides the same level of safety as the background checks the taxi companies were running.

    Keep in mind however that only a handful of cities use Medallions. Outside of NYC and those other cities, Uber is getting busted for exactly what you propose: they refuse to do things like pay for police background checks and require drivers to hold a commercial driver's license. Uber is managing to break the law even in cities with a limited number of common sense laws.

  14. Re:the establishment really does not like competit by l0ungeb0y · · Score: 5, Informative

    Silly hater? Illogical nonsense? Hey asshole -- how about you at least bother to fucking google

    Here's a comprehensive list of incidents, and in the US and Europe, not just in India and Pakistan http://www.whosdrivingyou.org/...

    Fact is any psycho can become an uber driver and use the service to cruise for victims and that's exactly what has happened and will happen until they start screening and licensing their drivers as per the tai regulations EVERYWHERE mandate.

    So fuck you, fuck your "mod point" and fuck your inability to even fucking use a fucking search engine.

  15. 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.

  16. 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.

  17. Re:Why make it complicated? by soccerisgod · · Score: 5, Informative

    Not true. Where licenses are available, there are in the order of 50 bucks. If they are expensive, they are because no new licenses are given and you have to purchase one from someone who already holds one - and that can get expensive. But it's certainly not true that local authorities are making big profits from this that they can't live without.

    Around these parts, we have a very different idea of how society is supposed to work. Whereas countries like the US are run by free-market radicals who believe that everyone should be left to fend for themselves, we here in Germany any many other European countries have some notion left that sometimes, the weak and needy need to be protected and helped. For that reason, we have a lot of laws and regulations (like concerning public health insurance) that people like you would no doubt consider far-left.

    The reason the taxi market is so heavily regulated is that taxis are considered part of the public transportation system. Taxis have to accept every passenger but also get certain privileges like being allowed to park where others aren't. And because they are part of the public transportation system, they also have to make extra sure that no harm comes to the passengers, and this includes a proper insurance for their passengers and having their car checked more often for technical issues.

    This isn't some evil plot to rip off a poor poor American company, this is about basic safety standards.

    It's probably also worth mentioning that the way Uber handles the (non)employment of their drivers is annoying everyone here, as well. If you are employed, you pay unemployment and pension insurance fees, and if/when you lose your job or you are too old to work, the insurance will pay for your needs. If you don't have such insurance, like the Uber drivers, the state will have to pay. While there sadly are many companies that handle things this way, it's not exactly met with appreciation by most people around here...

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  18. 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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