Uber halts operation in three German cities

Uber Technologies is closing down its operation in Düsseldorf, Hamburg and Frankfurt, Germany due to lack of its licensed drivers. However, services in Munich and Berlin will be retained.

International taxi service company, Uber Technologies, is retrenching three cities in Germany as a result of German court ruling, which compels cab drivers to have a valid driver's license.

In an email sent by Uber driver published on Tech Crunch, the company found it hard to arrange a new platform for car rental companies.

The company is struggling to conform over the country's regulation. Uber said in a statement, "For many prospective Uber partners the process of registering an independent rental car enterprise has proved as too costly and time-consuming."

Amidst the rapid growth of its service around the world, Uber has earned heavy protests and injunctions in other European countries, including Spain, France, and Italy for allowing unlicensed cab drivers to operate.

This time in Germany, Taxi Deutschland complained over the company's UberPop. It is a low cost, online transportation service that connects passengers to private drivers without authorization through the mobile app.

In March, the Frankfurt court issued a cease and desist order opposing Uber's illegal practice of using unlicensed taxi drivers with €250,000 or $270,000 fine for every defiance of the said ordinance, Reuters reported.

The court bans Uber and UberPop apps. As stated by the presiding judge, the passenger transport law has been violated because the company operates without consent and it doesn't hold the applicable license. The company doesn't cover necessary insurance on Uber's services as well.

Correspondingly, any infringement of the said ordinance is subject for up to six months imprisonment of the company's employees.

On the other hand, Uber replaced UberPop by UberX which is another inexpensive chauffeur service under the compliance with the German law.

As of now, the company limits its drivers with passenger transport license through UberX and UberBlack, but it ran out of licensed drivers to support its demand.

Cited on Digital Trends, Uber Germany General Manager Christian Freese said the company will remain devoted in its extension in Germany and would still continue to communicate with the authorities and politicians finding a predominant resolution in the region.

However, Freese said the company will retain its service in Berlin and Munich. "Yet we've found the requirements, even for licensed services, to be very complex. Uber is increasingly popular in Munich and Berlin so we have decided to focus our efforts there."

He said many people in Germany still want to have a safe and reasonably priced ride with Uber.