Uber sued by traditional taxis, must compensate in France

Uber was sued by a traditional taxi and had to pay compensation in France - Photo 1.

French taxi drivers strike, take to the streets to protest against Uber in January 2016 – Photo: REUTERS

A French court on September 10 ordered Uber to pay 180,000 euros to 910 traditional taxi drivers and their unions for unfair competition.

The traditional taxi group’s lawsuit focuses on UberPop’s activities in 2014 and 2015. This feature allows users to hail a car cheaply and quickly by prioritizing drivers near the user’s location.

This model is promoted by Uber as “car sharing” or “ride-sharing”, which benefits both users and those with vacant cars who want to earn more.

However, according to the Paris Taxi Federation, this is a form of transport business and many people without a taxi license are operating as professional taxi drivers.

The frustration of traditional taxi drivers is mainly because they have to spend time and money going to school, applying for a license to practice while UberPop drivers do not need it. The cost of this permit is often quite high, up to 100,000 euros in Paris, according to AFP news agency.

According to this group, because Uber hires unlicensed drivers, there are no formalities, so fares are significantly cheaper than traditional taxis and cause them to lose revenue.

In its September 10 ruling, the court found that the use of untrained drivers damaged the image and reputation of licensed taxi drivers.

On that basis, the court ordered Uber to pay 192 euros to each of the 910 drivers and 5,000 euros to the Paris Taxi Federation.

“This is the right decision and it will help prevent other platforms from providing illegal transport,” the head of the taxi union Christophe Jacopin told AFP of the ruling.

In a statement after the incident, Uber announced that it no longer works with drivers without a taxi license in France since 2015. The group also emphasized that current Uber drivers all undergo training. created like traditional taxi drivers.

New York imposes fixed commissions, Uber and companies sue

DoorDash, Grubhub and Uber Eats – online food delivery platforms in the US – sued the New York City government on September 10, after being asked to collect only a flat commission from restaurants. , restaurant.

These platforms also have to apply for a license to operate in New York and are only granted a license for a period of two years, according to Reuters news agency.

In the lawsuit filed in federal court, the three companies argue this is “price control” and “unconstitutional” for interfering with the freedom of negotiation between restaurants and platforms.

In addition to New York, the city of San Francisco in California also applies a fixed commission.

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