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Ruling could spell doom for Uber in Denmark

In a long-awaited ruling, the Copenhagen City Court on Friday found six Uber drivers guilty of violating Denmark’s taxi laws.

Ruling could spell doom for Uber in Denmark
The trade union LO said the ruling should drive Uber out of Denmark. Photo: Simon Skipper/Scanpix
The six drivers were handed fines ranging from 2,000 to 6,000 kroner. 
 
The ruling marked the first time that a Danish court has weighed in on the legality of the popular ride-sharing service. 
 
Uber was introduced in Denmark in November 2014 and was reported to the police by the Danish Transit Authority within hours of its launch. The Copenhagen Police confirmed in May 2015 that preliminary charges had been filed against the American company, but to the taxi drivers’ dismay the case took over a year to make it to court. 
 
The local taxi industry has railed against what it says is Uber’s illegal operation in Denmark. The taxi drivers argue that the rideshare service Uber Pop creates unfair competition because Uber’s drivers and vehicles aren’t required to live up to the same requirements as others in the taxi business, one of the most thoroughly-regulated industries in Denmark. 
 
The Copenhagen City Court ruled on Friday that Uber’s profit motive means it is not a true ridesharing programme but instead is akin to an illegal taxi service. 
 
It is now expected that Friday’s ruling will clear the way for cases to proceed against an additional 40 Uber drivers who have been charged with violating taxi laws.
 
Dansk Taxi Råd, a business lobby group for the taxi industry, cheered the court’s decision.
 
“Copenhagen City Court has ruled that these six Uber partners have provided taxi services. That has been our interpretation all along and we are pleased that the City Court has confirmed that we are correct,” the head of Dansk Taxi Råd, Trine Wollenberg, told news agency Ritzau. 
 
She added that she hopes police will crack down on Uber drivers now that the court has set a legal precedent. 
 
The head of the Confederation of Danish Trade Unions (LO), said the court’s ruling should force Uber out of Denmark.
 
“I now expect Uber to stop offering pirate taxis in Denmark. We need to stop the illegal and unfair competition that Uber has created,” Lizette Risgaard said in a press release. 
 
According to Uber, there are roughly 200,000 registered users in Denmark and 1,000 active Danish drivers each week. 
 
 
 

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Uber poised for Swiss expansion

Long plagued by legal issues and driver shortages, ride sharing service Uber is set to expand into more of Switzerland’s French-speaking towns.

Uber poised for Swiss expansion
Photo by Humphrey Muleba on Unsplash

Long plagued by legal issues and driver shortages, ride sharing service Uber is set to expand into more of Switzerland’s French-speaking towns. 

The ride sharing service announced on Wednesday it would expand into the predominantly French-speaking towns of Fribourg, Sion and Yverdon. 

A spokesman for the American service told Swiss media outlet Watson the expansion was fuelled by demand. 

In Sion and Fribourg, while rides can be booked via the app, they will be carried out by taxis in order to comply with local regulations. 

“Our launch will enable taxi drivers to increase the use of their vehicles, win new customers and thus generate more sales thanks to our technology,” said Jean-Pascal Aribot, Director of Uber Switzerland. 

Uber currently operates freely in the German-speaking cities of Basel, Bern, Lucerne, Winterthur and Zurich. 

Legal issues and driver shortages

Uber’s expansion in Switzerland has been slower than in some neighbouring countries.  

Drivers have complained that Switzerland’s high cost of living makes it more difficult to make ends meet, while the company has also been plagued by frequent legal issues. 

The service is currently banned in Geneva due to concerns about payments for drivers, although the ban has been suspended regarding an appeal. 

Geneva classifies Uber as an employer, meaning that drivers should be entitled to benefits including paid holidays, sick leave and pensions. 

The company disputes this and says its drivers are independent contractors. 

In February, voters in Zurich approved a plan to place more restrictions on Uber in the canton. 

The new restrictions include that drivers need to register with cantonal authorities and place obvious signs on their vehicles to distinguish them from regular cars.

The vote, which took place only in the canton of Zurich as part of the February 9 round of referendums, sought to bring regulation for Uber and other ride-sharing services in line with taxis and other limousine services. 

A total of 51.6 percent of voters approved the initiative, while 42.4 percent were opposed. 

The initiative also ‘cantonalised’ taxi regulation, meaning that the municipalities of Zurich will no longer set conditions for taxi companies. Unlike previously, taxis are now allowed to use ranks anywhere in the canton. 

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