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Uber France Leaders Arrested For Running Illegal Taxi Company

An anonymous reader writes: Two Uber executives were arrested by French authorities for running an illegal taxi company and concealing illegal documents. This is not the first time Uber has run into trouble in France. Recently, taxi drivers started a nation-wide protest, blocking access to Roissy airport and the nation's interior minister issued a ban on UberPop. A statement from an Uber spokesperson to TechCrunch reads: "Our CEO for France and General Manager for Western Europe were invited to a police hearing this afternoon; following this interview, they were taken into custody. We are always available to answer all the questions on our service, and available to the authorities to solve any problem that could come up. Talks are in progress. In the meantime, we keep working in order to make sure that both our customers and drivers are safe following last week’s turmoils."

10 of 334 comments (clear)

  1. Taxi licenses are crazy expensive by MouseR · · Score: 4, Informative

    In Quebec, it costs upwards of 200,000$ CDN to have a taxi license.

    Drivers spent their entire life's saving enough to buy their own license while they lease another one's. It's their only retirement plan: lease a license they earned to buy.

    No wonder they're pissed.

    1. Re:Taxi licenses are crazy expensive by jklovanc · · Score: 3, Informative

      This assumes that all the laws regarding licensed taxis were instigated by taxi owners. That is patently not true. Many of the regulations were created in response to problems caused by unlicensed taxis. Here are some of the regulations that cost licensed taxis money.
      - Minimum number of cars on the road/company.
      - ratio of handicap accessible taxis.
      - standards of cleanliness.
      - language standards
      - anti-discrimination
      - driving record checks
      - criminal record checks
        - frequent vehicle inspections
      - professional driver's licenses

      While it is not perfect there is a mechanism to pull bad taxis off the read. Without being able to pull a license that mechanism is gone.

      The reason there is a limit on competition is to create an environment where owners can make a living and still follow the regulations imposed on them.

      An upstart breaking that system means going back to the bad days when taxis were unregulated.

    2. Re:Taxi licenses are crazy expensive by idji · · Score: 2, Informative

      Uber has to do these checks anyway before they are allowed to take the drivers.
      The "bad days" of unregulation were long before the digital age - we have better ways of checking these people now, including star ratings within the Uber app - if the driver doesn't have 5 stars, just reject them.
      The goal shouldn't be so that taxi drivers can make a living, but rather that people can get from A to B how they want.
      The fight here is about cronyism, protectionism and the scam of making taxi drivers pay $200,000 blood money to be able to drive in Quebec, Melbourne, etc. I have talked to taxi drivers in Melbourne who hope that they can sell their license when they retire so that they can retire.

    3. Re:Taxi licenses are crazy expensive by chihowa · · Score: 5, Informative

      WTF have your shares got to do with your desire to deliberately trash the life savings of millions of taxi drivers in the western world?. They entered into a contract with the government...

      Typically, taxi medallions aren't sold by the government anymore. They're typically sold by their previous holders and the high prices reflect their scarcity and perceived value. The market decides this value (even when they're auctioned off by the state), so there isn't any guarantee that they'll maintain that value. Any contracts that exist say nothing about limiting the supply or compensating medallion-holders for any speculative prices they paid. Buying a medallion for $800k is just as speculative as buying an $800k house or $800k worth of stock. There are no government guarantees that they will maintain value.

      tl;dr... The economics of the taxi medallion situation are extremely similar to shares in a company. The "contracts" that you're referring to don't exist (at least in the form that you image).

      --
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  2. Re:Does Uber need executives in France? by cstacy · · Score: 3, Informative

    they are protecting for the laws that exist that protect them, to be enforced. It's their rights. To be a taxi driver you need a pay a massive license fee, that's how it is. You can't just tell people you're a taxi driver and start making money, there's the insurances and all that, needed. Uber has NONE of it. If anything happens in a "uber taxi", you, your family and friends, essentially eat sh*t. Because not only was your using their illegal, they also don't any have sort of insurance that can protect you.

    In the USA? Not quite.

    Uber is not a taxi, it's a limo service. Limos are regulated in some (all?) states, but differently than taxis. You can't hail a limo on the street (or airport lane), you have to call them (phone or app) to specifically come to you. Limos don't have "medallions" and are not a limited quantity. The requirements for special driver's license, insurance, and so on, are different than taxis.

    Uber provides significant insurance to it's drivers, and it's not "illegal" (at least not in the USA). And they do pay out on claims. Other tort arguments seem unlikely. HOWEVER: When you drive for Uber, your own PERSONAL insurance policy is probably void (most carriers). In fact, if you have EVER used your vehicle for Uber, your insurance is voided -- even if your claim had nothing to do with any Uber trip. If you get hit on the way to the grocery store or injure someone on your way to your day job, your nasty surprise is that you had no valid insurance at that time. Because you once on another occasion used your vehicle for a purpose that totally voids your insurance.

    When you call up an insurance company these days to report an accident, the very first words out of their mouth are: "Have you ever used your vehicle for Uber, Lyft, or anything like that?" Because if they find out (and, being insurance investigators, they WILL find out) that the answer is "Yes", then they will inform you that at that time, you voided all your insurance. You Are Fucked.

  3. Re:Does Uber need executives in France? by Uberbah · · Score: 5, Informative

    Unions had their place. It's in history now, just like the confederate flag. Unions need to die, they do nothing any longer other than make a few wallets fat (the few running the unions), a TON of people lazy (nearly all union workers), and they disrupt commerce and blah blah blah blah blah

    Unions will be needed as long as greedy executives try to exploit labor. Any more concern trolling?

  4. Re:Does Uber need executives in France? by pr0fessor · · Score: 3, Informative

    Uber left my state although it's one of the most loosely regulated because they didn't feel they should be required to have more than minimum private liability insurance as apposed to the same commercial insurance that taxis are required to have. Medallions are not required and a commercial license for a taxi driver is about $15 more than a regular driver's license every four years.

  5. Uber is illegal in France by HuguesT · · Score: 5, Informative

    Uber operates outside the bounds of the law in France. This is well documented. There are two sets of law that they do not obey. The first is one regulating car drivers that are not taxis. It is legal in France to operate a car service to drive people from A to B but you need to abide by some restrictions. The car cannot be hailed, only booked. The driver must have some qualification, etc. Uber does not abide by these laws. The second set of law protects the consumer. In particular, data must be viewable and deletable by the consumer, and they cannot be retained indefinitely. Again Uber does not follow the law.

    Recently the french equivalent to state department pointed out to Uber that they needed to change some things, so what did they do? They opened service in 5 new cities with no change. This was seen as provocation, and so obviously the top executives were brought in for questioning. The french cannot state on the one hand that something is illegal and on the other let it happen. They had to act.

    Now maybe the law needs to change, this is an important debate. In the meantime in a law-based country the law needs to be upheld.

  6. Re:Flagrantly anti-consumer by dave420 · · Score: 3, Informative

    You say "let's be honest", then make up some fantasy which doesn't apply to "most countries". Maybe to yours, but not to "most countries". In Germany all the taxis I've taken have been spotless, driven by polite drivers (except one, who briefly complained about having to break a 50), are well maintained, and usually a new(-ish) Mercedes. They turn up when called, or are available to flag down on the street. Germany doesn't want Uber as the taxi service here works well.

  7. Re:Does Uber need executives in France? by Jesrad · · Score: 5, Informative

    France has a heavily unionized workforce

    Nope. Norway or Italy have heavily unionized workforces, whereas France has the least-unionized workforce (7.7%) in Europe save for Estonia (6.8%).

    However, France has some of the richest, most politically influential unions, by a huge margin. To put it simply, unions in France are like parallel political parties, with their own occult sources of funding, high-ranking members inflitrated in every institution, and legal priviledges that protect their position.

    But french taxis V.S. Uber is an entirely different, though related, issue.

    To make light of the sorry state of Uber in France, you only need to know a few things:
    - just a few months ago, Agnès Saal was mediatically ousted from her position as head of the INA for allegedly squandering taxpayers' money on... taxi rides (40 000 euros' worth)
    - then a couple weeks ago, we learned that the amount squandered was actually an order of magnitude larger than previously stated - there was simply noway to spend that much on taxis
    - also notice that Jean-Jacques Augier, the previous CEO of G7 taxis, the biggest taxi company in France, was the financing director of François Hollande's presidential campaign in 2012
    - G7 taxis' current CEO is a close friend of Hollande's Parti Socialiste, and was involved in François Mitterrand's own campaigns too

    The intimidation campaign that is raging on against Uber in France is simply how the politicians currently in power are defending some of their illegal sources of funding. The seemingly "out of proportion" violence of this campaign is simply a reminder that, in France, you just don't ask about political parties' or unions' money unless you're ready to die (just like Robert Boulin, Pierre Bérégovoy and judge Pierre Michel died).

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