Uber Office Raided By Police In China, Accused of Running 'Illegal' Car Business
albert555 writes: Uber's curse keeps on striking after Uber's office in the southern Chinese city of Guangzhou was raided by authorities on the 30th of April 2015. Uber is accused of running an 'illegal' transport service, according to the Guangzhou Daily. Uber has been implanted in China since August 2013 and is suspected of not having the proper qualifications to run a private car business in the city. Following the recent German court ban two weeks ago, who will win the fight for private transportation? Long-term, established transportation companies with powerful lobbying arms or the newcomer making use of disruptive technology? Does Schumpeter's creative destruction also apply to the transportation sector?
Um... China. Always China. It's practically a right of passage for internet companies to get beaten into submission by the Chinese government.
>Following the recent German court ban two weeks ago, who will win the fight for private transportation? Long-term, established transportation companies with powerful lobbying arms or the newcomer making use of disruptive technology?
Timothy, have you gone full retard? The whole uber issue is that they break the law all over the world are un/under insured, time after time after time. This has nothing to do with "Long-term, established transportation companies with powerful lobbying arms". And neither do uber make use of disruptive technology, their system is the same or similar to many other systems, its just they have raised more VC than anyone else and spend a lot more money on advertising.
Uber must to, or work to change the laws
just like everybody else
Was this written by Fox? It could easily been written as "Commie evil people block Fredom fighters of the USA".
They did not follow the rules, they get caught. If you do not like the rules of a country, don't do business there.
Don't fight for your country, if your country does not fight for you.
The established transportation service does *not* have to lobby. The relevant laws where established a long long time ago.
It is uber who must lobby, and it should do so *before* opening up business.
Uber isn't some magical entity which exists outside of laws and regulations, no matter what its owners keep trying to tell us.
Uber has basically said "why, no, we're special because we say so, and we don't give a crap about your laws", and then they go on to say "we're not a transport company, we're a tech company, who happens to behave like a transport company".
I have precisely zero sympathy for Uber, and I think more places should be impounding cars and arresting people who have basically decided "fuck you, I'm going to run a commercial car service and keep saying loudly how I'm not a commercial car service".
This bullshit about "Long-term, established transportation companies with powerful lobbying arms or the newcomer making use of disruptive technology?" is exactly that ... it's bullshit. It's how Uber tells their underdog story, but it's a complete lie.
This has nothing to do with established players with powerful lobbying arms. This has everything to do with how governments have regulated commercial vehicles, and Uber using their bullshit story to sound like the plucky underdog.
Uber is a tech startup, acting like a spoiled child, and decreeing they aren't subject to laws.
The whole underdog thing makes for great PR copy, but is otherwise a complete fucking lie.
Lost at C:>. Found at C.
If there is a word obey, then there is a different word for this system, but it is not "legal".
People easily forget that legal system is meant for the 99% of "just like everybody else".
You are subject to the law even if you claim you are not.
Uber is discovering this all around the world.
Like everything else, The Uber problem is a question about money and nothing else. Not safety and insurance and all that other malarky.
For example, in my city in order to operate a taxi you need the following:
#1 Taxi plates. Limited in quantity (to probably keep the price up high). They can EASILY go for $500,000 + to purchase , renewed annually (and it is not cheap).
#2 Annual inspection of car (more $$$ for gov)
#3 Taxi license. In order to procure you need to do some special tests (which cost more than an average license) + the annual renewal fee.
Bonus requirement
#4 This one is not imposed on by government; belong to one of the local cab companies. Like I said this is not a government requirement, however the city is carved up in territories that belong to one of the local cab companies. Pick up a fare in the wrong part of the city and you are looking to get a beating or worse. Some also have exclusive rights for pickups in some malls, tourist attractions etc....
Uber basically comes in and says fuck this.....and bypasses all that crap (which == to a lot of $$$$). And the locals simply CANNOT COMPETE because they are burdened with all these taxes.....
The thing about Uber is....it's a taxi service. Since you pay to be transported. Their business model is predicated on the fact they label themselves as a "ride sharing service" to avoid paying their dues and yet charger rates within the same ballpark.....All the other stuff is fluff...(the app, gps tracking, etc.) that will be copied by all (if not already).
IMHO one of 2 things will happen; Either they will lobby local govs and eventually transition to a regular taxi service with global presence.....Or the scam will be up and the company will fold.
Would a taxi service by any other name behave as badly? Apparently yes.
Laws around taxi services exist for a reason, regardless of what uber would like people to believe.
Unsurprisingly, Chianti and Fava Beans do not go well with Uber Liver. A hipster ironic beer like PBR and a side of cheese fries really completes the meal.
10/10, would eat Uber again.
In the long run, private industry will win, if only because the government cannot stifle disruptive competition forever. But in the meantime, government can -- and obviously will -- inconvenience an awful lot of people by fighting Uber.
I see tons of posts here bashing Uber for not following the rules, basically saying they're competing unfairly with cab companies that are required to carry insurance, etc. All that is true, but it's also completely irrelevant. You do realize these cab companies came up with and supported those rules, right? It presents a formidable barrier to entry for any new transportation service, thus virtually guaranteeing a small number of service providers a captive market, an oligopoly if you will. No wonder they're crying foul. They should be screaming "let us compete with the same lack of restrictions as Uber" but instead they're screaming "force Uber to be just as restricted as we are!"
It's amazing what the free market can do if you let it. If people have a choice between cheap Uber rides with under-insured drivers and more expensive cabs with fully-insured drivers, let people make that choice! Why does government have to nanny the ever living fuck out of people to the point where it will deny them the right to make a choice that affects no one but themselves???
In the end they will lay their freedom at our feet and say to us, Make us your slaves, but feed us. - Fyodor Dostoyevsky
Yes we seriously compare transportation with human sacrifice laws.
Because those who want to regulate Uber are threatening and scaring with potential injuries and the loss of life riding the cars that are under-insured, under-maintained with un-showered un-dereducated drivers, and they say the laws are for common good.
Same with Aztecs, they scarified for what they believed was common good.
And, as lawyers like to say often, the law is the law and justice is blind.
The truth is both type of regulations, be it Uber regulation or Aztec times sacrifice rules are anti human and not reasonable.
What is reasonable is Uber maintained rating system which, using free market principles, is weeding out not only bad apples but also bad servicemen with bad temper
what do you expect from a communist country like china. And yes they are commies!
tell it to family of Sofia Liu insurance gaps can lead to victims / 3rd party victims to be left holding the bag for the doctor bills / other damages when uber and others use fine print to get out of paying up.
"Fine print"
When the policy is or isn't in effect is the central point of the policy. That's like saying that a life insurance policy not paying out on a suicide is "fine print". The driver was personally liable in that case. And also, I should add, no more likely to be the cause of such a tragedy than any other driver. Should all drivers be required to carry million dollar policies?
AFAICT it was illegal.
We suffer more in our imagination than in reality. - Seneca
But the drivers own insurance passed the bag to uber and uber said the driver was not hired at the time (was open looking for a fair) but at the same time other taxis are on the taxi insurance when they are open looking for a fair.
The story never ends. Innovators try to create something new and help their fellow human beings, then the state tries to stamp it out. Fortunately, innovators move faster than government. In the long run humanity wins and bureaucracy loses.
Who will win, long-term, established ecologies or kudzu?
Maybe it's inevitably kudzu, but does that mean we should cheer for it? Cancer is also a disruption. Should all laws be dissolved if they get in the way of anyone's business plan? Why insist on anyone having drivers licenses at all, let alone commercial ratings and proper insurance to carry fares? It would be cheaper to build cars without seat belts and airbags. Let's disrupt that!
"with their freedom lost all virtue lose" - Milton
This may be the most biased summary I've ever read. It's almost as bad as Fox news.
In a civilised country they are required to. German driver insurance policy has to be, by law, at least EUR 7.5 million for personal damage - per person, capped to 100 millions per case.
"It's such a fine line between stupid and clever" -- David St. Hubbins, Spinal Tap
Obviously, the more crony capitalism and rent seeking there is in a sector, the harder it is to innovate, drive down prices, and deliver a better product, viz transportation, healthcare, education.
Most taxi companies are EXTENSIVELY regulated, regulation that Uber has been expressly avoiding. Yes, they are illegal, highly illegal. Almost everywhere they go, they are illegal. Almost every place they've tried to operate has had them shut down because they are not following regulations. This should not come as a surprise to anyone.
Uber needs to unionize.
This is China. So you can be sure that once Uber is driven out of the country, the Chinese version of Uber will be sanctioned and completely take over the market share. Its happened in every other sector. US companies go there to divulge technology and operations information, only to be replaced by state sponsored actors as soon as is convenient.
Since everyone seems to be talking about Uber's practices. I was taking a cab back to LaGuardia last week and noticed the cabbie had Uber up on his phone. Thoughts?
Then there is a lawsuit, and the courts will sort it out. These kinds of disputes happen ALL THE TIME in insurance. Why do you think there are so many lawyers advertizing on TV with tough guy names like "The Hammer" or "The Gorilla" all talking about going after insurance companies?
That's good then. Sensible, self consistent, consistent with current law, and non-biased is what you want in regulation.
What? Its legal according to Chinese law and the government shut them down anyway? That is whack!
What I don't understand is why this business model is allowed to work for Uber, but not for napster, thepiratebay, or more recently, Grooveshark. All of these entities thought that they would invent themselves in the face of laws that they considered unfair yet only Uber is the one that is allowed to survive among them?
Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
Someone probably didn't pay of the fire chief or whoever else was important in that district to turn a blind eye. It seems to be how it works in China.
The Chinese government should send several dozen of their federal agents (and couple choppers for good measure) to swoop in to arrest all of Uber's executives in America... after all that seems to be a trend the Americans are setting i.e. Kim Dotcom