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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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ENERGY

EXPLAINED: How high will heating bills be this winter in Germany?

The cost of energy is expected to rise again this coming winter, even though the government's price cap is supposed to be in effect until April 2024. Here's what households can expect.

EXPLAINED: How high will heating bills be this winter in Germany?

The onset of winter will raise concerns for many in Germany about the cost of heating their homes, with memories of last year’s rocketing prices and concerns over domestic gas supply resurfacing. 

But, compared to last year, the energy prices have now largely stabilised, though they are still higher than in 2021.

The stabilisation in prices is partly thanks to the government’s energy price cap which came into force earlier this year to cushion the blow of soaring energy prices by capping electricity costs at 40 cents per kilowatt-hour and natural gas at 12 cents.

READ ALSO: Germany looks to extend energy price cap until April 2024

The federal government plans to maintain this cap until the end of April, though this could be extended even longer, if necessary. 

How high are heating costs expected to go this year?

For the current year, experts from co2online expect somewhat lower heating costs than last year.

Heating with gas, for example, is expected to be 11 percent cheaper in 2023 than in 2022, costing €1,310 per year for a flat of 70 square metres. 

The cost of heating with wood pellets will drop by 17 percent to €870 per year, and heating with heating oil will cost 19 percent less and amount to €1,130.

According to co2online, the costs for heating with a heat pump will drop the most – by 20 percent to €1,1105. The reason for this, according to co2online, is a wider range of heat pump electricity tariffs.

Tax hikes in January

Starting January next year, the government will raise the value-added tax on natural gas from seven to nineteen percent.

Alongside this, the CO2 price, applicable when refuelling and heating, will also increase.

According to energy expert Thomas Engelke from the Federal Consumer Association, these increases will mean that a small single-family household with three or four people that heats with gas would then pay about €240 more per year for gas.

“That’s a lot”, he said. 

Another additional cost factor to consider is that network operators also want to raise prices. However, the federal government plans to allocate €5.5 billion to cushion this increase for consumers as much as possible, so how such cost increases will ultimately affect consumers is currently hard to estimate.

READ ALSO: Why people in Germany are being advised to switch energy suppliers

Overall, it can be said that, from January, consumers will have to brace themselves for higher energy costs, even though massive increases are currently not expected.

Consumer advocate Engelke advised customers to closely examine where potential savings could be made this upcoming winter: “Those who are now signing a new gas or electricity contract should inform themselves and possibly switch. Currently, you can save a few hundred euros. It’s worth it. On the other hand, you should also try to save as much energy as possible this winter.”

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