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Uber Raided By Dutch Authorities, Seen As 'Criminal Organization'

An anonymous reader writes: Uber offices in Amsterdam have been raided by Dutch authorities, as reported by several local media sources (Google translation of original in Dutch). This follows intimidatory deterrence practices earlier in The Netherlands, with Uber drivers being fined in the past months, and fresh allegations that the company would act as a "criminal organization" by offering a platform for taxi rides without license (read: without the authorities earning money from the practice). Time for tech companies to consider moving their European offices elsewhere? Uber's lawyers must be incredibly busy. Proposed regulations in London would effectively end the company's service there, while the mayor of Rio de Janeiro said he would ban Uber's operations outright. They're receiving mixed messages from Australia — just a day after running afoul of regulations in New South Wales, the Australian Capital Territory is moving to legalize it.

32 of 471 comments (clear)

  1. They are enabling criminals by Anonymous Coward · · Score: 5, Insightful

    It is currently not allowed to offer taxi services without a permit (and related stuff: insurance, markings on the car etc. depending on EU-country).
    Work to change the law before you start the business.

    There are lots of things you can't do without certification/permits/etc. If your plan is to fuck it all then you ARE working outside of the law. (car analogy: building your own car and not approving it - or in tax-insane Finland: paying car import tax on the burocrat-estimated worth of your self-built car).

  2. 'criminal organisation' is Uber's business model by Anonymous Coward · · Score: 5, Insightful

    Why the scare quotes around 'criminal organisation'? Uber's business model is to break the laws of every country they operate in and then hoping that the authorities are too timid to crack down on them. That by definition makes them a criminal organisation.

    Oh, and nice bit of LOLbertarian bias in the summary.

  3. Uber is as safe as taxis by Okian+Warrior · · Score: 5, Interesting

    In an attempt to cut through the bullshit of what *might* happen and work directly from evidence, I came across a report of a Cato institute study:

    A Cato Institute study shows key differences between rideshare services and taxis, but passenger safety isn't one of them.

    The other differences are not as important and will probably get solved by other means. For example, cleanliness of the ride, courtesy of the driver, and gypping the customer can be handled by the Uber feedback system.

    The economists here are quick to point out the importance of liquidity, and Uber adds much needed liquidity to the taxi system.

    Can anyone justify the expense and bureaucracy of taxi medallions when passenger safety isn't an issue?

    1. Re:Uber is as safe as taxis by Richard_at_work · · Score: 5, Insightful

      The taxi medallion issue comes up frequently here on Slashdot, especially in support of Uber - except many countries dont have medallions or the costs associated with them. Here in the UK, to become a licensed taxi in my local area, it will cost you less than £3000 in fees every four years - wheres the excuse for Uber to be operating unlicensed in the same location?

    2. Re:Uber is as safe as taxis by fahrbot-bot · · Score: 5, Insightful

      A Cato Institute study ...

      You can probably stop there. The Cato Institute was founded by Charles Koch and while it proposes to be solely Libertarian it often leans Right. Any "analysis" they perform must be taken with a grain of salt. I'm not saying they're wrong, but what they publish cannot be detached from their public and, more importantly, private agendas.

      --
      It must have been something you assimilated. . . .
    3. Re:Uber is as safe as taxis by N1AK · · Score: 4, Insightful

      Can anyone justify the expense and bureaucracy of taxi medallions when passenger safety isn't an issue?

      Medallions are an outdated system that may have made sense at that time. However what we're talking about here (the examples of Ubers illegal practice in this article) isn't medallions. So no I, and I doubt many others, would even try and justify the medallion system but that doesn't mean that licensing on some level can't be justified on reasons beyond passenger safety.

      Some examples of things that it might be justified to control via licensing (other than passenger safety):
      Driver insurance
      Passenger insurance
      Pedestrian safety
      Emissions
      Traffic Control
      Availability of transport for the disabled/elderly
      Availability of transport to/from less popular locations
      Quality of service (especially in high tourist areas)

      I'm glad services like Uber exist as they bring more competition, but that doesn't mean that I agree with Uber's desire for an unregulated free for all.

    4. Re:Uber is as safe as taxis by jklovanc · · Score: 5, Insightful

      How about these requirements that taxi companies have to adhere to.
      - Availability of handicap accessible vehicles.
      - Minimum number of cars on the road.
      - Minimum wages for drivers.
      - Vehicle inspections. I know safety may not be an issue now but give it a few years when Uber drivers wear out their current cars but can not afford a new one.
      - The requirement to pick up anyone regardless of race, colour, gender, etc.
      - A company responsible for the behavior of the driver. Uber is not as they say their review system will handle it. It may in the long run by there is no one to make drivers clean up their act.
      Right now Uber is in a honeymoon state. Most of their drivers are happy and courteous. Wait about ten years when drivers have been jaded by low fares and bad customers. Then there will be even worse problems finding a cab. Today's regulations didn't just spring out of thin air. They were built up over years to deal with issues in the industry. Uber ignores those regulations and therefore their costs are lower.

      For example, cleanliness of the ride, courtesy of the driver, and gypping the customer can be handled by the Uber feedback system.

      It works until Uber gets too many complaints and they can not keep enough drivers on the road to service their customers. When making a choice between minor complaints and not enough drivers Uber will probably ignore the complaints.

  4. wtf by bloodhawk · · Score: 5, Insightful

    "Time for tech companies to consider moving their European offices elsewhere?"

    how about, Time for tech companies to stop thinking local laws don't fucking apply to them. Either obey the law, fight to get the laws changed or get the fuck out of the market. NO company should get to decide what laws they will and won't obey, that is a slippery slope that no one wants to be on.

    1. Re:wtf by Anonymous Coward · · Score: 5, Insightful

      This, and how about Uber stop calling itself a tech company just because it brought out an app, and start calling itself a goddamn taxi company?

    2. Re:wtf by bloodhawk · · Score: 4, Insightful

      because people tend to be sheep when it comes to corporate welfare & protection laws. everyone likes to drag out the image of the poor uneducated taxi driver trying to make ends meet, not the corporation that actually owns his license and rents it to him.

      They certainly are, the amount of sheep running out to protect Uber is absurd. They need to remember this next time a company they don't like decides the law shouldn't apply to them, you can bet they will be bleeting like sheep for the government to step in.

  5. Uber is breaking the law, period! by ebusinessmedia1 · · Score: 5, Insightful

    What doesn't Uber understand about municipal codes? Yes, taxi service sucks, but just because I think I want to get to work faster doesn't mean I can break the speed limit. We have laws for a reason; if Uber wants to compete,it has to compete according to the LAW. If it wants to change the law, the ballot is where that should happen. After all, Uber is lining the pockets of politicians now, anyway - to let them help Uber break the law. It's absurd.

  6. All about Taxi Laws by msh104 · · Score: 4, Insightful

    In the Netherlands we mostly have a mix of semi free market and government regulation.
    The government sets the ground rules and free competition is possible within that platform.

    Taxi drivers have to obey by many strict laws. Uber "taxis" do not.
    The current position of the government is that Uber poses unfair competition as Uber users do not comply with the regulation required for Taxi drivers while essentialy offering the same services.

    Technically, if Uber can make their drivers comply to the Taxi driver rules the app would be no problem.
    Much of the advantage would be lost in the process though..
    And it's a bit of a killer for innovation and keeps prices high.
    Personally i like the sharing culture Uber promotes.
    But i don't think the attitude towards Uber taxis will change anytime soon.

    1. Re:All about Taxi Laws by ziphnab · · Score: 5, Insightful

      Personally i like the sharing culture Uber promotes. But i don't think the attitude towards Uber taxis will change anytime soon.

      And you might change that opinion if you are ever in an accident while being a passenger in an Uber 'taxi' and it turns out he's missing all the liability insurance that are requisite for any form of public transport company in the netherlands and it turns out his personal insurance doesn't cover 'professional services' as every consumer car insurance policy in the Netherlands does.

      --
      --- Sometimes even music cannot substitute for tears. --Paul Simon, Cool Cool River
    2. Re:All about Taxi Laws by jklovanc · · Score: 5, Insightful

      Personally i like the sharing culture Uber promotes.

      Uber is "ride sharing" in the same way pizza delivery is "food sharing". Namely it is not. With Uber you hire a vehicle and driver to take you from one location to another. There is no "sharing" involved. Sharing would be if the driver planned to go from A to B and picked up someone else who happened to be going the same way. For example, many non-profit commuter services are ride sharing as do just that. That is not what Uber does.Being an Uber driver is a part time job and nothing else.

  7. They certainly are a criminal organisation... by Rick+in+China · · Score: 4, Insightful

    ...in some countries. They're openly breaking the law. However - where regulations are faulty or problematic hampering the freedom of providing a valued service to the populace, this type of disruption is the only way to drive forward new growth markets and change 'the way' it is. Just because something is averse to a current corporate/government structure doesn't make it bad, although it is in many cases criminal.

    I'd be curious about stats of Uber users - is it just a loud minority who aim their sites at the company? I'm guessing it is. Everyone I know who uses Uber loves it, and while I feel for the taxi drivers who pay into medallions or permits to drive cabs, markets....get.....disrupted......and this is a f'n good disruption.

  8. Apropos of nothing... by Okian+Warrior · · Score: 4, Insightful

    Doesn't matter. A law is a law. Period.

    Apropos of nothing, how do you feel about Rosa Parks not moving to the back of the bus?

    1. Re:Apropos of nothing... by N1AK · · Score: 4, Insightful

      Yeah, cool analogy. But bad analogy.

      No, it was an excellent analogy to rebut someone's argument that "A law is a law. Period". The entire point of the Rosa Park counter is to highlight that something being a law in no way, just by that fact, justifies a position.

      What Uber is doing is wrong not because it's against the law, but because the laws it breaks are laws that the population in general see as being at least acceptable. If a state made giving lifts to abortion clinics illegal then I'm sure plenty of people would be raving about their principled stand if Uber refused to stop doing it.

    2. Re:Apropos of nothing... by Anonymous Coward · · Score: 5, Insightful

      So you admit to trolling the forum? "Fighting emotions with emotions?" Then you are no better than the people you are trying to fight.

      If you want to fight with facts or analysis, don't come up with cheap shots, come up with facts and analysis by yourself.

      Speaking of facts: how do you know that these "fukin' law-breakers" commenters are angry taxi drivers? Perhaps they are just like me, EU citizens that don't like that a foreign company come over here and piss all over our welfare system (yes, the one giving me education and healthcare, that is paid by taxes, the same taxes Uber et al are trying to skirt with their "disruptive technology") because they want to make a profit. Anyone can undercut someone else if they stop worrying about laws, regulations or moral consequences, there is nothing new about that. Where I live taxis are plentiful and unless a special event is happening, getting a taxi is as easy as picking up your phone. The cab is there before I can get my jacket on and walk down to the door. Most big taxi companies here already have their apps, so you don't have to worry about using your phone to make an actual call to a living person. What does Uber offer me? Cheaper rides. There are already illegal cabs offering that service if the price is all you care about. Still, Uber is trying to get into the scene by not employing drivers (thus not paying taxes/healthcare for them) because it will be more profitable for them. But not for the city I live in and it's inhabitants.

      I find forums like these are equally filled with Uber fanbois unquestionably hailing the new economy and thinking other cities/countries should bow down to the Uber overlords that has given us backwards living cavemen the illumination of divine insight. These fanboys were here long before the "fukin' law-breaker" commenters started showing up and those with Uber-opposing views were quite moderate in their choice of words when criticising Uber. Might one have given birth to the other? I too get fed up when I hear the same things over and over again. I understand that some people finally stop trying to be civil and start using explicatives.

      Some laws and regulations might be wrong, but as a company you either adhere to them or face the consequences, which Uber now is doing. And while on the subject of civil disobedience, facing the consequence IS the desired effect. As an individual you can oppose the law with the intention of being brought to justice, hoping that the judicial system will expose the unjust laws and change them. This is allowed since you yourself are willing to take the risk. If you are found right, laws are changed and you are potentially freed. If wrong, you face the consequences of breaking the law.

      If you do "civil disobedience" and have no intention of getting caught/changing the system, you are just a law-breaker that thinks the laws are dumb and cannot call the "civil disobedience card".

  9. Ueber's Janus face, a taxi sweatshop by Anonymous Coward · · Score: 4, Interesting

    Ueber likes to promote itself as a happy camper ride along service, but is morphing more and more into a global taxi sweatshop.

    No longer is it just take on somebody for a ride, but exploiting legal loopholes to employ taxi drivers without any benefits, dodging taxes etc, and keep full control over them.

  10. Re:Without government... by Malc · · Score: 5, Interesting

    Err, why do you think that Uber is superior? Surge pricing during a Tube strike is a real bitch, as is the difficulty in arranging for a guaranteed 5am pick-up for the airport arranged the night before.

    As a cyclist in London I've been having a lot of trouble recently with bad drivers all in Toyota Priuses with mobile phones on their dashboards. Simply coincidence that this has happened and got worse with the rise in popularity of Uber? These drivers are worse than the dickheads in the black Addison Lee vans. I'm all for some government regulation and taxation for these arseholes.

  11. Re:Without government... by Anonymous Coward · · Score: 5, Informative

    Fuck the taxi cartels and the governments that support them.

    You mean fuck the Dutch government for abolishing the taxi cartels in 2000 ?

    Uber is as always trying to avoid the costs of running a business by skirting around proper insurance, standardised equipment and related local laws. Even if there was an artificially high cost of entry into the market (which I could find no hint of) it would be hard to keep an international giant like Uber from operating legally.

  12. Re:An argument by Anonymous Coward · · Score: 5, Interesting

    COMPANIES have no right to commit civil disobedience, only individuals can do that. For a company that just makes them a criminal organization.

  13. Re:An argument by bloodhawk · · Score: 5, Insightful

    that is a fallacious argument. You have incorrectly associated an individuals right to civil disobedience with the rights of a company. A company is not a citizen and as such it cannot commit civil disobedience. The world would be a very bad place if companies got to decide on laws, companies don't have the individual consequences associated with civil disobedience.

  14. Re:Without government... by Anonymous Coward · · Score: 5, Insightful

    It's more than that, and you know it. Uber are choosing to have their drivers operate outside the local rules. Their drivers do not have insurance for passengers, and they do not have full background checks performed. So fuck yourself instead, moron.

    Uber are more than welcome to compete, but like all the other companies, they have to adhere to the local laws. They have a system that works, they merely need to play by the rules.

    Don't like the laws? The fuck off back to Murica, you won't be missed.

  15. Re: Without government... by Malc · · Score: 4, Interesting

    Maybe in your area, but that's not my experience. Their prices and availability are so random that it's not reasonable to make plans around them. I can imagine how much worse they'd get if they didn't have to compete with regular taxi and private hire car firms.

  16. Re:An argument by bloodhawk · · Score: 4, Insightful

    So you jump from one fallacious argument to another one to try and justify the behavior. Freedom of the press is not the same as civil disobedience which is not the same as a company ignoring laws.

  17. Lovely flamebait in summary... by denzacar · · Score: 4, Interesting

    and fresh allegations that the company would act as a "criminal organization" by offering a platform for taxi rides without license (read: without the authorities earning money from the practice)

    Nice one there.

    Get the anti-gubermint crowd by emphasizing the criminal organization definition of Uber.
    (YEAH! Fuck you Holland and your German laws! You don't get to decide what constitutes a legal definition of a criminal organization in your country!).

    Then get the pro-regulation crowd by insinuating that paying taxes, tariffs etc. and submitting to regulation is somehow just a legal racket by "the authorities".
    (YEAH! Fuck you regulatory gubermint bodies! I WANT to live in a Blade Runner-like dystopia. Minus the tech, replicants, flying cars, Vangelis soundtrack and unicorns.)

    It's almost as if both the "anonymous reader" and Soulskill love watching their mom being double-teamed so much they just can't get the idea of getting it both ways out of their head.
    What? It's a flamebait story and topic.
    Decorum and protocol dictate the mention of management's and submitters Nazi whore mothers.

    --
    Mit der Dummheit kämpfen Götter selbst vergebens
  18. Re: Without government... by Asha2004 · · Score: 5, Informative

    Actually the Dutch taxi market is pretty open nowadays, with several thousand not affiliated taxis in Amsterdam only. But the Netherlands is a pretty regulated country. For driving a taxi for example you need a license (easily obtainable) and there are fixed tariff regulations. Obviously Uber drivers have no such license and don't comply with the tariff regulation. I don't know any democratic nation where an organization which actively organizes and supports activities which don't comply with the law is not seen as a criminal organization.
    Doesn't mean that Uber won't be seen as a kind of emancipationary club somewhere down the line. But now...

  19. Re:Without government... by Dr_Barnowl · · Score: 4, Informative

    Huh?

    Both private hire cars and black cabs are required to display an ID number for exactly the same reasons. A complaint can get their license suspended.

    It's just easier to do it to an Uber because you can do it right from the app.

    > Rates are fair

    The rates for standard taxis are strictly regulated and controlled. Uber rates vary when Uber thinks they should (e.g. surge pricing during tube strikes).

  20. Re:Without government... by gsslay · · Score: 4, Interesting

    People on slashdot go all moist about Uber because they love the technology it uses. They don't care that Uber also ignores all the laws put there to protect passengers and drivers.

    The solution is for proper taxi firms to use the same technology. It's not unusual for the established organisations to be slow off the mark on these things, and for an upstart new-entrant to make the running. If Uber was just adding tech to the business that would be great, but they also decided to break the regulations that are there for good reason. And why are they doing that? Not for anyone else's benefit. But because it's cheaper and easier for them to pretend the rules don't apply to them.

  21. Re:Without government... by Luckyo · · Score: 4, Insightful

    I'm European, specifically a Finn. I've never had taxi miss a reserved time. Their responsibility if they do is in fact written into the law, and I have a right under customer protection legislation to demand recompense if they clearly accepted the order.

    Of course, around here taxi companies are considered part of public transit infrastructure, and are also tasked with things like driving children in sparsely populated rural areas to schools, ferrying elderly and disabled and so on. They're expensive, but you get the quality you pay for.

    I suspect the reason why you have these complaints is because there isn't enough regulation on taxi services in your country.

  22. Re:Without government... by TapeCutter · · Score: 5, Insightful

    jcr, you're a regular poster as am I, you're a level headed guy, but as an ex taxi driver I have to say you have your head up your arse on this one.

    IMO Uber are the worst kind of rent seeker, the kind that prey on people who are desperate enough to sign up as a driver. Uber's over-inflated "market value" has to collapse because at some point the "market" will become bored with the legal battles over 'freedom' and want a real ROI. I don't have any pity for the investors, just the honest drivers who go in with a reliable car and no money, and come out a year or two later with an unroadworthy clunker, and still no money.

    If you think I'm exaggerating, the oldest taxi I ever drove was 5yrs off the showroom floor, it had 1.1 million kilometers on the clock, only the body work was original, even the seat sliders had been replaced at least once. Unless the Uber driver is also a mechanic, it would be cheaper for them to buy a 'runout-model' used car once a year. Most taxi's are a one man / one car operations, they lease/rent it to another regular driver or two to keep it on the road 24X7, and buying a 'new' car once every year or so is how they handle the entropy problem. They don't earn a lot of money, the 'plates' (medallion in the US) is the taxi owner's superannuation. The "hidden costs" are the reason Uber refuses to play by the rules, driving a cab doesn't pay enough to satisfy them so they insert themselves in the middle, they even "generously" offer to pay the drivers fines while at the same time offloading all the real costs onto the poor sap.

    Also they are not a 'taxi' company as they would like you to think, in most places they are a traditional 'limo' company using sub-contractors, fuck me they were around when I was driving in the 80's, nobody had heard of the internet but we did have phones. Limos can't be flagged down, nor can they use taxi rank infrastructure. Using sub-contractors and ordering it on a computer is hardly revolutionary, so it's not the regulations that are broken, it's Uber's business model. For good reasons it was illegal before the internet was born, "on a computer" doesn't change that.

    Again, I'm genuinely surprised you have swallowed Uber's 'hipster' marketing.

    --
    And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.