Slashdot Mirror


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?

2 of 176 comments (clear)

  1. Re:Who will win? by Dunbal · · Score: 4, Informative

    No, not only China. Uber's business model is illegal in most of the world where there are already laws governing charging fares to passengers in your car.

    --
    Seven puppies were harmed during the making of this post.
  2. Re:Who will win? by TWX · · Score: 4, Informative

    Passenger livery laws exist for a reason, and it's not simply to make taxi companies richer. It's to ensure the safety and well being of the passengers both during normal, mundane fares, and when something like an automobile accident happens.

    If Uber was being used as a real ride-sharing service, where the driver happened to be going to a destination near the passenger's destination, such that the passenger's fare offset there driver's costs somewhat, I might be inclined to let Uber slide on the regs a bit, as that's not a lot different than getting gas money from the drunk friend for the trip home from the bar. Instead Uber is operating as a taxi service, where the driver acknowledges requests for pickup, drives to the location of the fare, collects them, drives them to their destination, and then looks for another request for pickup. Uber is a taxi. As such it needs to abide by passenger livery laws. If it doesn't like the laws, and if the passengers in a given area also feel that there's a problem, they should work to change the laws, not to break them while claiming that the laws do not apply.

    --
    Do not look into laser with remaining eye.